Technest Holdings Engages C.E. Unterberg, Towbin as Financial Advisor


BOSTON, April 5, 2006 (PRIMEZONE) -- Technest Holdings, Inc. (OTCBB:TCNH), a defense and homeland security company transforming advanced laboratory technology into real-world products, announced today it has engaged C.E. Unterberg, Towbin to perform a review of the Company's business plan and advise the Company as it explores additional ways to maximize shareholder value.

Recently, Technest has made significant additions to the senior management team, including the appointment of Dr. Joseph Mackin as Chief Executive Officer, Gino Pereira as Chief Financial Officer, and three new independent board members. The Company has also submitted an application to list its shares of common stock on the Nasdaq Capital Market.

Dr. Mackin stated, "Our Board of Directors and management are committed to advancing our business by applying our broad range of existing technologies to production based applications. With Unterberg, Towbin we will review several alternative strategies and decide which approach offers the greatest opportunity to allow us to grow and build shareholder value."

Technest cautioned that no decision had been made to pursue any strategic transaction and there could be no assurance that the exploration of such a transaction would result in any definitive agreement or transaction.

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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