Contact Information: Contact: Stanley Wunderlich Consulting for Strategic Growth 1 (800) 625-2236 (516) 729-3714 swunderlich@cfsg1.com
Technest Holdings Response to Heavy Trading Volume
| Source: Technest Holdings, Inc.
BETHESDA, MD -- (MARKET WIRE) -- May 14, 2007 -- Technest Holdings, Inc. (OTCBB : TCNH ) a
defense and homeland security company, issues the following announcement
after extraordinary trading volume on Friday, May 11, 2007.
On Friday, May 11, 2007 at approximately 3:30 pm, an extraordinarily high
volume of shares of Technest common stock were sold on the OTCBB. The
volume during the last 30 minutes of trading was approximately 900,000
shares in contrast to a daily volume of less than 50,000 shares a day since
the dividend payment of Technest shares to Markland Technologies
shareholders on May 4, 2007. As a result, shares of Technest closed at
$0.31 at the end of the day, a decline of over 66% on the previous days
close. The management of Technest believes that the value of Technest is
not reflected in Friday's closing price and would refer investors to our
10QSB which was filed with the SEC at 4:34 pm on Friday, May 11, 2007. For
the third quarter ending March 31, revenues were $17.95 million in 2007
compared to $17.86 million in the same period in 2006. Gross profit for the
third quarter was $3.93 million vs. $3.24 million in the third quarter of
2006. The operating loss for the quarter narrowed to $268,926 compared with
$795,772 for the same quarter a year ago. The net loss attributable to
common shareholders was $0.92 million or $0.05 per share in the quarter
ended March 31, 2007 compared to a net loss of $1.52 million or $0.10 per
share in the comparative quarter in 2006.
On March 29th, 2007 the Company also announced that its wholly owned
subsidiary, EOIR Technologies, received delivery orders totaling
approximately $58 million to fund two new projects. The first is for a Near
Term IED Detection System and the second is for a Wide Area Surveillance
and Improvised Explosive Device Detection System. Both were awarded on
behalf of the U.S. Army's Night Vision and Electronic Sensors Directorate
("NVESD").
Technest also continues to evaluate strategic alternatives for the Company
and/or its subsidiaries.
About Technest Holdings, Inc.
Technest Holdings, Inc. 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. For more information, please visit the company's
website at http://www.technestholdings.com.
Investors are cautioned that certain statements contained in this press
release 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, applicability, benefit
and use of our product 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: the
functionality of our product; 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