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Industrials

Technest Announces Special Capital Distribution to Stockholders
By MARKET WIRE
Dec 24, 2009 - 4:36:01 PM

BETHESDA, MD -- (Marketwire) -- 12/24/09 -- Technest Holdings, Inc. (OTCBB: TCNH)announced that, following the settlement agreement with EOIR Holdings, onDecember 23, 2009, its board of directors has declared a special "returnof capital" cash distribution of $0.407 per share of Common Stock. Thisdistribution relates to the sale of EOIR Technologies, Inc. as previouslyannounced. The cash dividend is payable on January 15, 2010 to shareholdersof record as of January 4, 2010.

About Technest Holdings, Inc.

Technest Holdings, Inc. is a provider of: advanced remote sensor systems,intelligent surveillance and advanced 3D imaging technology solutions tothe defense, homeland security and healthcare marketplaces. Technest iscommitted to setting next-generation imaging standards through theprovision of innovative emerging technologies. Through strategicdevelopment, Technest focuses on the creation of dual-use technology andproducts with applications in healthcare as well as the fields of defense,civilian homeland security and law enforcement.

To learn more about Technest Holdings, Inc., (OTCBB: TCNH) please visit thecompany's Web site at www.technestinc.com.

Investors are cautioned that certain statements contained in this pressrelease are "forward-looking" statements within the meaning of the PrivateSecurities Litigation Reform Act of 1995 (the "Act"). Forward-lookingstatements include statements which are predictive in nature, which dependupon or refer to future events or conditions, which include words such as"expects," "anticipates," "intends," "plans," "believes," "estimates," orsimilar expressions. In addition, any statements concerning ongoingbusiness strategies or prospects, applicability, benefit and use of ourproduct and services, and possible future actions, which may be provided bymanagement, are also forward-looking statements as defined by the Act. Someof the factors that could significantly impact the forward-lookingstatements in this press release include, but are not limited to: thefunctionality of our product; our capabilities; a rejection of theCompany's products and technologies by the marketplace; and disputes as tothe Company's intellectual property rights. Forward-looking statements arebased upon current expectations and projections about future events and aresubject to risks, uncertainties, and assumptions about Technest Holdings,its products, economic and market factors and the industries in whichTechnest Holdings does business, among other things. These statements arenot guarantees of future performance and Technest Holdings has no specificintention to update these statements. More detailed information about thosefactors is contained in Technest Holdings' filings with the Securities andExchange Commission. http://www.sec.gov