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Technest Holdings, Inc.: Technest Begins Preliminary Steps in Arbitration Process to Recover $23 Million Contingent Purchase Pr

^{Published on 2009-02-27 07:25:43, Last Modified on 2009-11-04 08:37:06 - Market Wire}
 

BETHESDA, MD--(Marketwire - February 27, 2009) - Technest Holdings, Inc. (OTCBB: [ TCNH ]) a world-class 3D imaging company transforming state-of-the-art technology into real world products, announced that following the appointment of an arbitration panel, a preliminary hearing was conducted on February 4, 2009. The panel issued a scheduling order soon after the preliminary hearing and discovery has since commenced. The discovery period in this matter will allow Technest to obtain documents and deposition testimony from EOIR Holdings personnel. EOIR Holdings will be allowed reciprocal discovery from Technest. The arbitration process will culminate in a hearing before the full panel which is set to begin June 22, 2009, and is expected to last eight days. For more information see Technest's 10-Q quarterly report filed with the United States Securities and Exchange Commission on February 13, 2008.

On August 31, 2007, Technest entered into a Release Agreement with Southridge, Technest's largest stockholder, pursuant to which the parties agreed, among other things, that in the event Technest receives sufficient proceeds from the Sale of EOIR to allow for a distribution to its stockholders after payment of (i) currently existing obligations to its lenders and creditors, (ii) employee obligations and (iii) transaction costs (including taxes, legal, financial advisor and accounting fees, subject to Nevada corporate law, Technest shall distribute a minimum of 90% of the net proceeds of such transaction to its stockholders.

About Technest Holdings, Inc.

Technest Holdings, Inc. is a provider of: advanced remote sensor systems, intelligent surveillance and advanced 3D imaging technology solutions to the defense, homeland security and healthcare marketplaces. Technest is committed to setting next-generation imaging standards through the provision of innovative emerging technologies. Through strategic development, Technest focuses on the creation of dual-use technology and products with applications in healthcare as well as the fields of defense, civilian homeland security and law enforcement.

To learn more about Technest Holdings, Inc. (OTCBB: [ TCNH ]) please visit the company's Web site at [ www.technestinc.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 ongoing business strategies or prospects, applicability, benefit and use of our product and services, 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; our capabilities; 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 ]