BOSTON, Jan. 17, 2006 (PRIMEZONE) -- Technest Holdings, Inc. (OTCBB:TCNH), a defense and homeland security company which is transforming advanced laboratory technology into real-world products, announced today a status update on its ongoing Automated Adaptive Chemical Exploitation System (AACES) remote sensor research and development effort. This research and development program is a funded Phase II U.S. Army SBIR and has been undertaken by its wholly owned subsidiary EOIR Technologies Inc. in cooperation with the U.S. Army Night Vision and Electronic Sensors Directorate (NVESD).
The AACES passively detects vapor-based anomalies that arise from infrared-active chemicals in the air. The remote standoff detection sensor maps out anomalous detections within a 10 (degree) x 14 (degree) field of view with 1.5 (degree) precision. On-board algorithms enable rapid reporting of detection of a host of chemical agents which can be found in chemical and explosive weapons. While the technology is advanced, the sensor is designed for easy use and interpretation. The AACES has the potential to enhance military and Homeland Security protection against a host of chemical and explosive threats that create airborne vapor signatures as well as facilitate battlefield tactics during the suspected use of chemical warfare agents. The AACES will also prove critical for the safety of first-response teams during disasters, as well as for determining safe escape routes for disaster victims. Earlier versions of this technology were used by the company in the days immediately following 9/11 to provide detection of dangerous chemical plumes found in the World Trade Center disaster site via airborne surveillance sensing. Additional data can be found for this project at http://www.technestholdings.com/technology_portfolio/crisis_support.html
The AACES has been tested in both laboratory and field environments at several stages of its research and development. AACES sensor test sites have included the U.S. Army's Ft. A.P. Hill and Dugway Proving grounds, where chemical warfare agent simulant releases and detonations have been monitored. As the final stages of prototype development draw to a close, additional field tests will occur at both the U.S. Army's Ft. Belvoir and Ft. A.P Hill.
Upon completion of commercial product development the company expects to have significant opportunities to sell the sensors to military and government intelligence agencies as well as to all segments of the Homeland Security marketplace. The AACES is projected to sell at a price of about $250,000 per unit. Additional data on the AACES can be found at http://www.technestholdings.com/technology_portfolio/chemical_detection.html
Technest's wholly owned subsidiary EOIR Technologies receives significant annual funding under an NVESD omnibus contract. The omnibus contract Option Year Four was awarded on July 15, 2005. Since that date, EOIR Technologies Inc. omnibus contract awards have totaled over $29.0 million. As of November 30, 2005, EOIR Technologies Inc. had funded backlog of $55.2 million.
The ongoing omnibus contract may provide a maximum ceiling amount of up to $80 million in fiscal year revenues. Many of the products and services being delivered on this contract utilize next-generation electro-optic and infrared sensor technologies that are being used in direct support of U.S. military combat operations in Iraq, Afghanistan and elsewhere. The Army's NVESD has been responsible for numerous key innovations in the fields of optical electronics and thermal imaging for weapons targeting, electronic surveillance and other mission-critical military applications.
EOIR Technologies, Inc. has been providing innovative sensor engineering products and services to customers within the Department of Defense for nearly 25 years.
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 that 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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