Technest Holdings Subsidiary, EOIR Technologies, Inc., Enters Into Partnership With Joint Research and Development, Inc. to Provide Engineering and Testing for Chemical, Biological, and Radiological Defense (B50) Division of the Naval Surface Warfare Center


BOSTON, Feb. 9, 2006 (PRIMEZONE) -- Technest Holdings, Inc. http://www.technestholdings.com (OTCBB:TCNH), a defense and homeland security company transforming advanced laboratory technology into real-world products, announced today that EOIR Technologies, Inc. (EOIR), its wholly owned subsidiary, has entered into a partnership with Joint Research and Development, Inc. (JRAD) to provide engineering and testing services for the Chemical, Biological, and Radiological (CBR) Defense (B50) Division of the Naval Surface Warfare Center (NSWC) in Dahlgren, Virginia. JRAD is a woman-owned small business headquartered in Northern Virginia which provides research and development services. EOIR and JRAD will concurrently support the B50 Division. Dr. Joe Mackin, President of Technest Holdings, made the announcement today.

EOIR and JRAD have previously worked together with the Marine Corps Systems Command (MCSC). JRAD's significant role in that prior program led the way for the EOIR/JRAD team to expand their customer base into the Dahlgren B50 Division. The two organizations will provide development engineering, testing, management, and documentation services for the advancement, acquisition, and deployment of nuclear, biological, and chemical defense (NBCD) systems and protection equipment for the Joint War Fighting community. This opportunity will allow both companies to promote their highly differentiated products and services which will include such items as the Technest Holdings ACADA chemical detector and M22 ACADA simulators.

EOIR will use this opportunity to broaden the scope of services currently provided at NSWC. At present, EOIR supports the Directed Energy Technology Office (B20) with systems integration, mechanical engineering, and programmatic support. President Joe Mackin stated, "We are pleased to announce our new partnership with JRAD and anticipate growing our effort at B50 within the coming months. We also believe that this new task will lead to additional opportunities within the Navy Marine Corps Support Division."

In addition to this partnership opportunity, EOIR has entered into another endeavor with JRAD. In January 2006, EOIR added JRAD as a team member on the SeaPort Enhanced (SeaPort-e) Multiple Award Contract (MAC). The addition of JRAD enhances the capabilities of the EOIR SeaPort-e Team, and the companies will jointly pursue opportunities to capture tasks orders under the SeaPort-e contract that capitalize on these capabilities.

The SeaPort-e contract, an indefinite delivery/indefinite quantity multiple award contract estimated by the U.S. Government to generate $5.3 billion in procurement dollars per year via orders issued to multiple contractors, is a five year contract designed to procure engineering, technical and testing services, and financial management support services for many divisions within the Navy including; the Naval Systems Command, Naval Air Systems Command, Space and Naval Warfare Systems Command, Naval Supply Systems Command, Military Sealift Command, Naval Facilities Engineering Command, Strategic Systems Programs, and the United States Marine Corps.

Technest Holdings had fiscal first quarter ended September 30, 2005 sales revenues of $19M and as of December 31, 2005 Technest Holdings Inc. had funded backlog of $51.4M. It will soon be reporting its fiscal second quarter results.

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. 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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