Technest Holdings Inc. Awarded SBIR Contract by US Navy.

BOSTON -- Technest Holdings, Inc. (OTC BB:TCNH.OB), a defense and homeland security company transforming advanced laboratory technology into real-world products, announced today that its wholly owned subsidiary Genex Technologies Inc. (www.genextech.com) has been awarded a Small Business Innovation Research (SBIR) contract by the US Navy. The contract is to develop a compact pan/tilt/zoom optical sensor that will result in providing Unmanned Combat Aerial Vehicles (UCAV) significantly improved optical sensing capabilities. The announcement was made by Dr. Joe Mackin, President of Technest Holdings Inc.

This newly designed optical sensor will be used by the US Navy for close range machine vision applications, specifically carrier flight deck operations and autonomous air-to-air refueling. Genex Technologies has developed a unique airborne optical sensor named OmniBird(TM) which is designed specifically for use onboard UCAV. OmniBird(TM) can see images at ranges which vary from 5 ft to 250 ft away during both daylight and low light conditions.

The company believes that OmniBird(TM) can be used in a broad range of military and civilian applications involving automatic target detection, tracking, and classification as well as surveillance.

Dr. Joe Mackin President of Technest Holdings stated, "This project is a great example of our corporate mission of transforming laboratory technology into real world products. We believe that these types of government funded product development programs will help us to continue to grow our present funded backlog of business which exceeds $60M at our EOIR Technologies and Genex Technologies subsidiaries."

About Technest Holdings, Inc.

Technest Holdings, Inc. (OTC BB:TCNH.OB - News) is a provider of: advanced remote sensor systems, chemical detectors, intelligent surveillance and advanced 3D imaging technology solutions to the defense and homeland security marketplaces. Technest is committed to setting next-generation standards in defense and security through the provision of innovative emerging technologies and expert services. Technest's solutions support military, law enforcement and homeland security personnel. Through strategic development, Technest focuses on the creation of dual-use technology and products with applications in both the defense market and civilian homeland security and law enforcement fields.

"Forward-Looking Statements"

Investors are cautioned that certain statements contained in this press release as well as some statements in periodic press releases and some oral statements of Technest Holdings Inc. officers and directors during presentations about Technest Holdings , are "forward-looking" statements within the meaning of the Private Securities Litigation Reform Act of 1995 (the "Act"). Forward-looking statements include statements which are predictive in nature, which depend upon or refer to future events or conditions, which include words such as "expects," "anticipates," "intends," "plans," "believes," "estimates," or similar expressions. In addition, any statements concerning future financial performance (including future revenues, earnings or growth rates), ongoing business strategies or prospects, and possible future actions, which may be provided by management, are also forward-looking statements as defined by the Act. Some of the factors that could significantly impact the forward-looking statements in this press release include, but are not limited to: a reduction in order rates from the Army's Night Vision and Electronic Surveillance Directorate, insufficient cash flow to continue to fund the development and marketing of the Company's products and technology; a rejection of the Company's products and technologies by the marketplace, and; disputes as to the Company's intellectual property rights. Forward-looking statements are based upon current expectations and projections about future events and are subject to risks, uncertainties, and assumptions about Technest Holdings, its products, economic and market factors and the industries in which Technest Holdings does business, among other things. These statements are not guarantees of future performance and Technest Holdings has no specific intention to update these statements. More detailed information about those factors is contained in Technest Holdings filings with the Securities and Exchange Commission. http://www.sec.gov/

Technest Holdings , Inc. is a featured Company on http://www.HomelandDefenseStocks.com, a service for which Technest Holdings compensates the provider.