Technest Announces Special Capital Distribution to Stockholders

BETHESDA, MD–(Marketwire – December 24, 2009) – Technest Holdings, Inc. (OTCBB: TCNH)
announced that, following the settlement agreement with EOIR Holdings, on
December 23, 2009, its board of directors has declared a special “return
of capital” cash distribution of $0.407 per share of Common Stock. This
distribution relates to the sale of EOIR Technologies, Inc. as previously
announced. The cash dividend is payable on January 15, 2010 to shareholders
of record as of January 4, 2010.