CACI & Zanett's Paragon Dynamics to Team on Air Force Contract; $300 Million 5 Year BPA Issued to Fund TASS Program.

Business Editors/Defense/Military Writers

NEW YORK--(BUSINESS WIRE)--May 5, 2004

Paragon Dynamics, Inc., (PDI) a wholly-owned subsidiary of Zanett, Inc. (NASDAQ: ZANE) is part of a CACI International, Inc. (NYSE: CAI) team recently awarded a contract to provide technical advisory and assistance services (TASS) to the United States Air Force (USAF) Space and Missile Systems Center (SMC), at Los Angeles Air Force Base, CA. In conjunction with the contract, the CACI Team recently announced that it has been issued a Blanket Purchase Agreement from the USAF with a total ceiling value of $300 million over a five year period. Paragon Dynamics will play a major engineering role on the CACI team in providing full lifecycle software development and systems engineering activities.

Paragon Dynamics's work under the TASS Blanket Purchase Agreement will include systems engineering and integration, end-to-end software engineering, systems architecture development and support, real-time collaboration and other related tasks that draw on Paragon Dynamic's SIGINT and IMINT Intelligence Community-related subject matter expertise.

The Air Force and other Department of Defense related agencies will use the TASS Blanket Purchase Agreement to support SMC activities. Key SMC organizations are expected to continue using this buying vehicle to provide the primary systems engineering and technical assistance and include: the Defense Meteorological Satellite Program (DMSP), the National Polar Orbiting Environmental Satellite System (NPOESS), the Global Positioning System (GPS), Space-Based Infrared (SBIRS), the Evolved Expendable Launch Vehicle (EELV), the Airborn Laser (ABL), MilSatCom, and an assortment of Ranges and Launch Vehicles.

SPECIAL NOTE REGARDING FORWARD-LOOKING STATEMENTS

This press release contains forward-looking statements within the meaning of the Safe Harbor Provisions of the Private Securities Litigation Reform Act of 1995. Forward-looking statements relate to, among other things, future events or Zanett, Inc.'s future financial performance. In some cases, forward-looking statements can be identified by terminology including, but not limited to, "may," "will," "could", "should," "expects," "plans," "anticipates" "believes," "estimates," "projects," "predicts," "potential" or "continue" or the negative of such terms or other comparable terminology. These statements include, but are not limited to, statements regarding: the expected benefits of the Company's acquisitions such as efficiencies, cost savings, market profile and financial strength, and the competitive ability and position of the combined companies. These statements involve, among other things, known and unknown risks, uncertainties and other factors that may cause Zanett, Inc.'s actual results, levels of activity, performance or achievements to be materially different from any future results, levels of activity, performance or achievements expressed or implied by such forward-looking statements. In evaluating these statements, various factors should be considered, including the risk that Zanett, Inc.'s, and its operating subsidiaries' businesses will not be coordinated and integrated successfully, and disruptions from acquisitions will make it more difficult to maintain relationships with clients, lenders, employees, suppliers or other constituents. For a discussion of additional factors that could cause Zanett, Inc.'s results to differ materially from those described in the forward-looking statements, please refer to Zanett, Inc.'s filings with the Securities and Exchange Commission, including, but not limited to, the sections titled "Special Note Regarding Forward-Looking Information" and "Management's Discussion and Analysis of Financial Condition and Results of Operations -- Risk Factors" in Zanett, Inc.'s 2003 Annual Report on Form 10-KSB.

About Paragon Dynamics, Inc. (http://www.paragondynamics.com)

Paragon Dynamics, Inc. (PDI), a wholly-owned subsidiary of Zanett, Inc. and member of the IT Commonwealth(TM) government services division, is a Systems, Software and Analytical Engineering Services company that provides technical expertise and engineering solutions to national systems and aerospace IT programs. The dedicated professionals at PDI consist of highly qualified engineers with direct experience in government and commercial satellite, DoD Intelligence, and IT infrastructure programs.

Our projects -- past and present--include: on-orbit space programs; ground based processing programs; command, control, communication and computer system development programs; and analysis, design and integration programs. The PDI staff of professional engineers, scientists, and project managers possess extensive experience in all aspects of systems development from conception to implementation of major national and international IT satellite systems. We are currently performing system engineering and integration, software development, strategic planning and program management, and mission operations and engineering tasks on several DoD Intel contracts.

We are strategically located in major defense and mission operational hubs - Colorado, California, and the Washington, DC metro area - to completely serve our customer segments.

About Zanett, Inc. (www.zanett.com)

Zanett is an information technology ("IT") holding company that through its operating subsidiaries provides specialized IT services to Fortune 500 caliber companies and large Government agencies. Collectively, the operating companies are referred to as the IT Commonwealth TM (the "Commonwealth").

The Commonwealth model seeks to preserve the culture, management and business practices that contributed to the success of the acquired entities while leveraging cross-selling opportunities and achieving economies of scale. Although each Member continues to market its own services and individually manage its own client relationships post acquisition, each Member also becomes a source of leads to other Commonwealth Members. The Company encourages collaboration, knowledge-transfer, resource sharing and cross marketing among Commonwealth Members, while seeking to preserve their autonomy and individual strengths. To facilitate this collaborative process, regular meetings are attended by the heads of each Commonwealth Member and corporate management. The Commonwealth's overarching mission is to offer solutions that meet or exceed client expectations, are delivered on time and within budget, and achieve superior results.

Members can also avail themselves of centralized corporate services, such as: legal support; financial and accounting assistance; human resource management support; and data network management and maintenance. By centralizing these functions, Members can focus on their core skill sets and seek to achieve the highest possible standards of service quality.