BOSTON, Dec. 20, 2005 (PRIMEZONE) -- Technest Holdings, Inc. (OTCBB:TCNH) (http://www.technestholdings.com), a defense and homeland security company transforming advanced laboratory technology into real-world products, announced today a business status update, corporate profile data and a number of strategic initiatives that the company intends to pursue in 2006.
Business Status Update
The company stated that it believes that fundamentals which affect its business and financial operating status are robust and expected by management to improve. A few of the most recent status achievements are as follows:
-- Fiscal first quarter ended September 30, 2005 sales revenues
of $19M.
-- Funded backlog as of November 31, 2005 of $55.2M.
-- U.S. Army Night Vision and Electronic Sensors Directorate
(NVESD) Omnibus contract awards exceeding $29.0M since
July 15, 2005. The Army's NVESD research and development group
is one of the U.S. military's most advanced technological
leaders. Technest Holdings' wholly owned subsidiary, EOIR
Technologies Inc., is working on a range of next-generation
technology solutions for the NVESD, including night vision and
advanced sensor applications, disposable sensors and other
threat-detection systems.
-- Subsidiary EOIR Technologies, Inc. awarded a SeaPort Enhanced
(SeaPort-e) Multiple Award Contract (MAC). The U.S. Navy is
awarding indefinite-delivery/indefinite-quantity multiple award
contracts to 503 contractors under this procurement program.
The Government estimates a maximum of $5.3 billion of services
will be procured per year via orders issued under the
SeaPort-e multiple award contracts amongst the group of
contractors. The awards have a four-year base period with one
five-year award term and one additional one-year award term.
Contract funds will be obligated at the time of task order
award and as such, multiple funding types (with varying
expiration dates) may be used, consistent with the purpose
for which the funds were originally appropriated by Congress.
-- Subsidiary EOIR Technologies awarded a contract by the U.S. Army
National Ground Intelligence Center (NGIC) to provide technical
services to the Measurement and Signatures Division. The award
is a competitive follow-on for EOIR, who will continue to provide
support in the areas of signature collections, computational
modeling, CAD modeling, sensor data processing, sensor
integration, and software development. As part of the Department
of Defense Intelligence Production Program, NGIC collects,
models, processes and analyzes scientific and technical
intelligence products in the area of Measurement and Signature
Intelligence (MASINT) of rotor (helicopters), ground systems
(tanks, rocket launchers, armored personnel carriers, light
trucks, etc.), and munitions (rocket propelled grenades,
mortars, etc.).
Corporate Profile Data
Technest Holdings, Inc. (OTCBB:TCNH) (http://www.technestholdings.com) is presently comprised of two operating subsidiaries: EOIR Technologies Inc (EOIR) and Genex Technologies Inc (Genex).
Our corporate mission statement is "Securing America by Providing Innovative, Emerging Technologies and Expert Services to Protect People, Borders, and Infrastructure."
Summary of Products and Services
Remote Sensor Systems and Technologies For Military And Intelligence Applications
EOIR provides advanced remote sensing technology products and services to the DOD and to various other United States intelligence agencies. EOIR's most significant source of revenue is an Omnibus Contract with the United States Army Night Vision and Electronic Sensors Directorate. The Omnibus Contract has an extensive and varied scope that requires us to provide a very broad range of products and technical services. For those products and technical services that EOIR does not possess in-house, we subcontract to our team members and other subcontractors as necessary. As a prime contractor, EOIR is responsible for the technical performance of all of its products and services delivered to the customer. Primary revenue streams are derived from the delivery of products and services which provide the customer with: advanced development product concepts; low volume produced prototypes; advanced signal processing algorithms and software; advanced systems integration; engineering and evaluation services; data collection and processing capabilities and other highly differentiated and proprietary products and services.
Products
EOIR develops and produces highly advanced remote sensing hardware and software system products for our government customer base. Our products extend the range of our remote sensor services, encompassing the full spectrum of sensor science, systems integration, and system support. Below is a list of our current products in production and or advanced stages of development:
-- LRAS (Long Range Scout Surveillance System): Third generation
upgrade of multi-spectral infrared sensing platform comprised
of Ultra Narrow Field of View Optics and Multi Spectral
Aided Target Detection.
-- AACES: Remote stand off chemical detector which consists of a
Fourier Transform Infrared (FTIR) sensor, a digital signal
processor and wireless computing elements for remote operation
and identification relay. It is designed to operate
independently with a pan and tilt operation, allowing it to
automatically scan a region or concentrate on a specific area
without the need for manual intervention.
-- ACADA (Automatic Chemical Agent Detection and Alarm): Man
portable chemical agent point detector sensor system which
utilizes Ion Mobility Spectroscopy technology to detect chemical
agents such as Tabun, Sarin, and classic nerve agents. This unit
has been mass produced and deployed throughout the U.S. Navy.
-- STUDS: Disposable and wireless low light visibility sensor
intended for use in urban combat and perimeter defense
applications.
-- SERTS(tm) (Safety Evaluation Range Training System): Audio and
video recording system that allows instructors to instruct,
review, and qualify trainees. SERTS is a minimally intrusive,
multi-platform compatible, audio/video monitoring system that
brings range evaluators to the action inside a host of live
fire exercise vehicles. It transmits live audio and video from
the exercise vehicle directly to a range tower for exercise
monitoring, recording, and post-exercise review.
-- Head Tracker: The Head Tracker Sensor Suite is a gimbal-based
system that allows a user to be in a tank, with a Heads Up
Mounted Display to view Forward Looking Infra Red imagery.
The Heads Up Mounted Display contains inertial and optical
trackers that are used to control the motion of the gimbal by
the head motion of the operator. This allows the operator to
see where the gimbal is looking without having to put his head
out of the tank. The Forward Looking Infra Red imagery can be
used in a variety of modes to include fused sensor data and
picture within a picture images.
-- USRD (Universal Sensor Remote Device): Embedded system that
allows multiple sensors to be remotely controlled. USRD is
designed to remotely control and retrieve data from multiple
sensors and transfer data to a base station through wired and
wireless communications.
-- Pelco Camera Translators: Embedded system that allows non-Pelco
cameras to be integrated into Pelco networks, that is, it allows
non-Pelco cameras to be controlled by a standard Pelco control
network.
-- WinProc(tm): A thermal imaging display and analysis
software-based tool designed for viewing and analyzing thermal
images. It offers a range of features including Fourier analysis,
high- and low-pass filters, thermal image calibration, image
statistics, and advanced digital display algorithms.
-- Iproc(tm): An interferogram processing and analysis
software-based tool that permits analysis of interferograms from
spectrometers. Designed for the analysis of remotely captured
chemical emission spectral information, the analysis tool enables
the recognition of targeted chemical signatures.
-- GPS GroundTruther: A software-based tool that can be used to keep
accurate positioning information for multiple vehicles during
field tests.
-- TTAASP(tm) and EOIRTA(tm): A software-based tool that assists
predictive modeling of thermal targets and is used to calculate
detection probabilities of targets at arbitrary angles and
ranges.
Services
EOIR has been providing highly differentiated services to government customers for nearly 20 years. Our scientific support spans a wide range of services, including the full spectrum of sensor sciences, systems integration, system support and software development, as more fully described below:
-- Sensor Science: Sensor science services at EOIR involve a
multitude of spectral regions, ranging from visible to far
infrared, developing, using and interpreting data from a number
of different sensors including acoustic, radar, thermal,
multi-spectral and hyper-spectral calibrated imagers.
-- Systems Integration: EOIR has the electrical and mechanical
engineering design experience necessary to integrate laboratory
prototypes into existing military sensor systems.
-- Technical Training: EOIR has the ability to develop classroom
courses and computer-based and web-based trainers to satisfy
unique customer requirements. EOIR is able to train on the use
of sensor and detection equipment as well as teach students how
to interpret sensor signature data.
-- Software Development: EOIR develops customized sensor and data
collection software platforms to satisfy a variety of unique
customer requirements.
Intelligent Surveillance
Genex's intelligent surveillance portfolio is anchored by its real-time embedded image processing technology and its 3D facial recognition technology. Our products include OmniEye(tm) Wellcam, OmniEye(tm) Cerberus, Smart Optical Sensor (SOS), Smart Suite(tm) and OmniVision.
The OmniEye(tm) Wellcam is an ultra light, portable 360 degree field of view camera which can be used in field applications, such as detection of underground weapon caches and search-and-rescue beneath building rubble, due to its durability. The OmniEye(tm) Cerberus is a re-configurable multi-sensor system that is designed for long distance infrared and visible light detection. The OmniEye(tm) Cerberus delivers this flexibility while still maintaining seamless panoramic coverage up to 360 degrees.
The Smart Optical Sensor high speed image processing platform powers Genex's Smart Suite(tm) algorithms, enhancing both new and existing sensor systems with capabilities including: reliable target detection, motion tracking, and object classification and recognition. Smart Suite(tm) algorithms by Genex are a portfolio of advanced video analysis and augmentation modules. The SOS is a powerful system that allows multiple cameras to be deployed easily in a distributed, scaleable network that provides autonomous surveillance.
OmniVision is a software platform for Genex's wide range of security and surveillance camera products. Built as a modular system, OmniVision can operate as a standalone application or easily integrate into existing systems. The unique architecture of OmniVision puts next-generation capabilities within reach of traditional camera and digital video recorder systems. The system includes software application modules for many different end-user needs.
Genex currently is engaged in programs to develop: disposable sensors for the U.S. Army Night Vision Lab; a miniature general purpose sensor processor for the U.S. Army Picatinny Arsenal; SmartMTI Motion Detection for the U.S. Army Armament Research, Development and Engineering Center; a weapon's flash detection system for the U.S. Navy Office of Naval Research; and a smart object avoidance system for the U.S. Navy Naval Surface Warfare System.
Chemical and Explosive Detection
The company is targeting key sensing technologies that are critical to both DOD and Homeland Security missions: Chemical/Biological (Chem/Bio) and Improvised Explosive Devices (IED) detection sensors. Our Chem/Bio and IED group concentrates on the research and development of technologies that can reliably detect the presence of chemical, biological, and explosive devices or components from a stand-off distance utilizing multi-spectral electro-optical sensing methods. Under a Phase 2 Small Business Innovation Research ("SBIR") grant from the U.S. Army, Genex is developing a new and unique sensor that can remotely detect the presence of chemical and biological weapons. We intend to offer these standoff detection sensors in an integrated system solution approach which also includes point detection capability provided by the EOIR-manufactured ACADA system. The ACADA system utilizes Ion Mobility Spectroscopy cell-based point detection chemical sensor technology.
Advanced Technologies Research and Development
The Advanced Technologies Research and Development group of Genex is focused on developing its imaging technology portfolio via advanced research in 3D facial recognition, intelligent surveillance 3D imaging, and medical imaging. By integrating its marketing pursuits with its R&D efforts, the group can bring to market technological advances that have enhanced customer value. Some of the group's targeted research areas include: (i) fully integrated Surematch(tm) suite of 3D facial recognition software application programs, (ii) intelligent surveillance using two- and three-dimensional image processing to support homeland security, military, and commercial applications; (iii) detection of concealment of intent using thermal and 3D imaging to support anti-terrorist efforts; (iv) early detection of cancer using non-invasive and non-radiological diffuse optical tomography; and (v) more effective and less risky radiation treatment for cancer by use of 3D imaging for patient positioning.
Strategic Initiatives for 2006
The company has organized its efforts to focus specifically on emerging product-based revenue streams and to capture new burgeoning business opportunities in the areas of U.S. intelligence agencies. Strategic business segments have been formed in the following areas: Technical Support Services, Border and Port Surveillance Systems, Specialty Security and Intelligence Systems, and Training Devices. Joint venture partnerships and select accretive asset acquisitions are presently being studied to provide accelerated growth in our market niches.
Technest Holdings' chairman and CEO, Robert Tarini stated, "We are well-positioned to grow the company in the coming year. Our highly differentiated remote sensing products and services are in high demand amongst our U.S. customer base and we feel we can leverage our intellectual property to provide recurring product-based revenues growth. Management believes that our financial position is strong and that our strategic initiatives for 2006 will improve corporate financial performance metrics and increase shareholder value."
About Technest Holdings, Inc.
Technest Holdings, Inc. (OTCBB:TCNH) 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.'s 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/
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