Technest Holdings, Inc. (OTCBB: TCNH)

Dear Reader,

At StockUpTicks we’ve hardly been shy about our affinity for three market sectors; biotech, natural resources, and homeland defense. We’ve endeavored vigorously yet cautiously to introduce you to stories within these burgeoning arenas and to expose them in a reasonable non-hype manner. That’s the StockUpTicks way.   And today is no different.

About a week ago we were introduced to Technest Holdings, Inc. (OTC BB: TCNH), a company that is entrenched in the homeland defense arena using their core technology of facial recognition. Like most investors, we hear about lots of homeland defense deals and most are based on a barely incubated technology, wild dreams and a public shell somebody had laying around.  Not Technest.  To start with, Technest has a current revenue run-rate of approximately $76 million. 

Additionally, the recently announced acquisition of biometric security technology developer Identix Inc. (NasdaqNM: IDNX) by Viisage Technology Inc. (NasdaqNM: VISGD) worth an estimated $770 million- signals yet another money-where-your-mouth-is decision by a major company looking to secure more critical technology.  Like Technest, Viisage is primarily known for its facial recognition software while Identix provides facial recognition and fingerprint recognition services.  Identix, valued by the market at about $699 million, reported trailing twelve-month revenues of $79.88 million - very close to Technest's revenue.  However Technest is currently valued by the market at just over $93 million.  

Technest has also released news today regarding its subsidiary, Genex Technologies Inc.,  which is providing facial biometrics products via its integrated FaceCam(tm) and SureMatch(tm) 3D suite of facial recognition tools.  By partnering with leading biometrics companies, Genex has created a suite of facial recognition tools that provides both an enhancement for existing biometrics users and market-leading performance for new deployments.   ... more below.

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About Technest Holdings

Technest Holdings, Inc. ("Technest" "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 market. TCNH is based in Boston, MA.

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.

In February 2005, Technest completed a multi part transaction which included the purchase of Maryland based Genex Technologies, Inc. Genex is a supplier of advanced imaging, surveillance and security sensor technologies. TCNH is presently comprised of two operating subsidiaries: EOIR Technologies Inc., ("EOIR") and Genex Technologies Inc., ("Genex"). Through these wholly owned subsidiaries, TCNH has long-term contracts with the U.S. Army & Navy.

TCNH offers imaging products and complete solutions for three-dimensional imaging and display, intelligent surveillance, and three-dimensional facial recognition in the United States ("U.S."). TCNH engages in the design and fabrication of customized remote sensor systems and platforms; remote sensor data collection, data signal processing, and data exploitation; and training in the use of remote sensor systems and data. 
 

TCNH products are offered through to the United States Department of Defense and various United States intelligence agencies, as well as to educational and medical institutions,  and private commercial entities.

Technest has organized its efforts to focus specifically on emerging product-based revenue streams and to capture new burgeoning business opportunities in the areas of U.S. intelligence agencies. Strategic business segments have been formed in the following areas: Technical Support Services, Border and Port Surveillance Systems, Specialty Security and Intelligence Systems, and Training Devices. 

Technest Holdings' chairman and CEO, Robert Tarini recently stated, "We are well-positioned to grow the company (in 2006). Our highly differentiated remote sensing products and services are in high demand amongst our U.S. customer base and we feel we can leverage our intellectual property to provide recurring product-based revenues growth." 

 -- Fiscal first quarter ended September 30, 2005 sales revenues of $19M.
 -- Funded backlog as of November 31, 2005 of $55.2M.
 -- U.S. Army Night Vision and Electronic Sensors Directorate contract awards exceeding $29.0M since July 15, 05. 
 -- Subsidiary EOIR Technologies, Inc. awarded a U.S. Navy SeaPort Enhanced Multiple Award Contract (MAC). 
 -- Subsidiary EOIR Technologies awarded a contract by the U.S. Army National Ground Intelligence Center. 

TCNH Divisions & Products

Remote Sensor Systems for Military and Intelligence Applications  Design and fabrication of customized remote sensor systems and platforms for Dept. of Defense  Remote sensor data collection,  data signal processing  and data exploitation

As a prime contractor, EOIR is responsible for the technical performance of all of its products and services delivered to the customer. Primary revenue streams are derived from the delivery of products and services which provide the customer with: advanced development product concepts; low volume produced prototypes; advanced signal processing algorithms and software; advanced systems integration; engineering and evaluation services; data collection and processing capabilities and other highly differentiated and proprietary products and services.

EOIR develops and produces highly advanced remote sensing hardware and software system products for our government customer base. Our products extend the range of our remote sensor services, encompassing the full spectrum of sensor science, systems integration, and system support. 
 

Long Range Acquisition Scout Surveillance System (LRAS) Sensor Integration

EOIR Technologies Inc. in support of the Ground Systems Division of the US Army’s Night Vision and Electronic Sensors Directorate (NVESD) is engaged in the third generation upgrade of a multi spectral infrared sensing platform called the Long Range Acquisition Scout Surveillance System. The sensor is comprised of Ultra Narrow Field of View Optics and Multi Spectral Aided Target Detection. EOIR Technologies, Inc. is responsible for the system integration and software design.
 

EOIR Disposable Sensors are being developed to be included in the U.S . Army’s Disposable Sensors Science & Technology Research Program. This sensor system will use a combination of infrared, acoustic, and seismic sensors to aid US Army Special Forces operators and other ground-based combat units in clearing and securing building interiors and perimeters as well as other urban structures in advanced combat areas.

In addition to the development of the LRAS product and the development of Disposable Sensors, EOIR  has been providing highly differentiated services to government customers for nearly 20 years. EOIR support spans a wide range of services, including the full spectrum of sensor sciences, systems integration, system support and software development, including: Sensor Science, Systems Integration, Technical Training, and Software Development.

By partnering with leading biometrics companies, Genex has created a suite of facial recognition tools that provides both an enhancement for existing biometrics users and market-leading performance for new deployments. FaceMatch 3D is a recognition engine based upon next-generation 3D-to-3D comparison.

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Pose, lighting, and expression have historically prevented 2D facial recognition from working well. Genex has addressed these problems by drawing upon its extensive research in 3D imaging and 2D-to-3D facial structure conversion.

SureMatch is a suite of facial recognition tools that provides more robust detection capabilities through 3D enhancement. By partnering with leading biometrics companies, Genex has created a suite of facial recognition tools that provides both an enhancement for existing biometrics users and market-leading performance for new deployments. At the core Genex utilizes a recognition engine based upon next-generation 3D-to-3D face matching. The suite also has tools that allow seamless integration with existing 2D systems and databases to improve 2D facial recognition..

Genex's intelligent surveillance portfolio is anchored by its real-time embedded image processing technology and its 3D facial recognition technology. Our products include OmniEye(tm) Wellcam, OmniEye Cerberus, Smart Optical Sensor (SOS), Smart Suite(tm) and OmniVision.

The OmniEye Wellcam is an ultra light, portable 360 degree field of view camera which can be used in field applications, such as detection of underground weapon caches and search-and-rescue beneath building rubble, due to its durability. The OmniEye Cerberus delivers this flexibility while still maintaining seamless panoramic coverage up to 360 degrees.

The Smart Optical Sensor high speed image processing platform powers Genex's Smart Suite algorithms, enhancing both new and existing sensor systems with capabilities including: reliable target detection, motion tracking, and object classification and recognition. Smart Suite algorithms by Genex are a portfolio of advanced video analysis and augmentation modules. 

OmniVision is a software platform for Genex's wide range of security and surveillance camera products. Built as a modular system, OmniVision can operate as a standalone application or easily integrate into existing systems. The unique architecture of OmniVision puts next-generation capabilities within reach of traditional camera and digital video recorder systems. The system includes software application modules for many different end-user needs.
 

Chemical and Explosive Detection The company is targeting key sensing technologies that are critical to both DOD and Homeland Security missions: Chemical/Biological (Chem/Bio) and Improvised Explosive Devices (IED)  detection sensors.

Shipboard ACADA system Technest Holdings subsidiary Science and Technology Research Inc., is the sole producer of the U. S. Navy’s Shipboard Automatic Chemical Agent Detection and Alarm (ACADA) man-portable point detection system.  Laboratory tested agents include: GA Tabun,  GB Sarin, VX Nerve Agent, HD Sulfur Mustard,  and GD Soman.

Response Time: Typically, less than 3 seconds The system has visible and audible alarms  1-3% false alarm rate in shipboard environment

Genex targeted research areas include: (i) fully integrated Surematch(tm) suite of 3D facial recognition software application programs, (ii) intelligent surveillance using two- and three-dimensional image processing to support homeland security, military, and commercial applications; (iii) detection of concealment of intent using thermal and 3D imaging to support anti-terrorist efforts; (iv) early detection of cancer using non-invasive and non-radiological diffuse optical tomography; and (v) more effective and less risky radiation treatment for cancer by use of 3D imaging for patient positioning.

aaa	Dedicated Commuter Lane (DCL) Border Crossing Logistics Support Program  TCNH was selected by the U.S. Immigration and Naturalization Service (INS) to maintain the automated international border crossings located at San Ysidro,CA; Otay Mesa, CA; El Paso, TX;  Detroit, MI; and Buffalo, NY.

The EOIR Safety Evaluation Range Training System, or SERTS, is a minimally intrusive, multi-platform compatible, audio/video monitoring system that brings range evaluators to the action inside a host of live fire exercise vehicles. 

SERTS transmits live audio and video from the exercise vehicle directly to a range tower for exercise monitoring, recording, and instant post exercise review. The SERTS system is capable of transmitting four full screen video views from inside the crew cabin, along with crew radio and intercom communications up to a range of 10Km.

SERTS is remotely controllable from the tower to include switching the four camera outputs among six camera inputs. The SERTS system is universally installable on all the M1 Abrams and all the M2 Bradley Fighting Vehicle variants.  most range training facilities. 

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The Head Tracker System is being developed in support of the Ground Systems Division at the Night Vision Laboratory located at Fort Belvoir, Virginia.  The Head Tracker Sensor Suite is a prototype head tracking gimbal-based system that allows a user to be in a tank, with a Heads Up Mounted Display to view Forward Looking Infra Red imagery.  EOIR Technologies has developed the software for the head-tracking portion of the system and has also performed testing and vehicle integration.

 
Aerial surveillance utilizing hyperspectral optical sensors revealed toxic chemical gas plumes at the World Trade Center disaster site. Green boxes indicate where chemical gases are escaping and could be identified, and the obvious threat to rescue workers and people who live and work in the area. 

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EOIR Technologies Inc. has performed numerous aerial surveillance programs to detect and classify chemical gas plumes utilizing hyperspectral optical sensors.  These programs were part of a Small Business Innovative Research, or SBIR, award with the US Army to identify and recognize chemicals using Fourier transform infrared (FTIR) remotely.  EOIR has demonstrated the capability of detecting a concentration of chemicals or gases by designing robust algorithms and enabling the remote optical sensor to evaluate chemical facilities and also to characterize disaster sites at a distance.

EOIR, a wholly owned subsidiary of Technest Holdings, has developed a number of computer-based (CBT) and web-based trainers (WBT) in support of DoD activities, especially in the areas of New Equipment Training (NET) initiatives. Technest Holdings employs Training Specialists, Curriculum Developers, Multimedia Programmers and Graphic Artists to develop course content, program interface and design, functional program performance and verification/validation of course content with the technical documentation and .NET instructors. Examples of recent training applications EOIR has developed include:

• Thermal Weapon System (TWS) for the US Army PEO Soldier 
• Long Range Advanced Scout Surveillance System (LRAS3) for the US Army PM FLIR 
• LRAS3 Maintenance and Troubleshooting for PM FLIR 
• ASDS Electronic Users Guide for NSWCDD Code N81 

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Recent News From TCNH

BOSTON, Jan. 19, 2006 (PRIMEZONE) -- Technest Holdings, Inc., http://www.technestholdings.com (OTC BB:TCNH.OB - News), a defense and homeland security company transforming advanced laboratory technology into real-world products, announced today that its wholly owned subsidiary Genex Technologies Inc. (http://www.genextech.com) is providing new advanced capabilities to the global market for facial biometrics products via its integrated FaceCam(tm) and SureMatch(tm) 3D suite of facial recognition tools. Genex is a supplier of advanced imaging, surveillance and security sensor technologies and has a patent portfolio of over 20 issued and pending U.S. patents for 3D video and imaging technologies. By partnering with leading biometrics companies, Genex has created a suite of facial recognition tools that provides both an enhancement for existing biometrics users and market-leading performance for new deployments.

Presently the U.S. government is depending on big improvements in biometric technologies as part of its homeland security strategy. For example, biometrics is poised to play a key role in the U.S. Visitor and Immigrant Status Indicator Technology program (USVISIT). The USVISIT program calls for the use of numerous technologies to better track foreigners entering and leaving the United States.

To read the entire release and disclaimer, click HERE

Press Release Source: Technest Holdings, Inc. 
Tuesday January 17, 11:05 am ET 

BOSTON, Jan. 17, 2006 (PRIMEZONE) -- Technest Holdings, Inc. (OTC BB:TCNH.OB - News), 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).

To read the entire release and disclaimer, click HERE

BOSTON--(BUSINESS WIRE)--Jan. 16, 2006--Technest Holdings, Inc., (OTCBB:TCNH.OB - News), 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 US Army Night Vision and Electronic Sensors Directorate (NVESD). 

To read the entire release and disclaimer, click HERE
 

TCNH LEADERSHIP

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Robert Tarini, Technest Holdings CEO/Director

Mr. Tarini worked at Raytheon for over 8 years, where he designed active sonar and Sonar Trainers for US and foreign customers which were installed onto every 688 class attack submarine and every SQQ-89 surface ship combat system, over 100 sea faring vessels in total. Mr. Tarini worked on the antiballistic missile radar system and weapons launch simulators from initial prototype development to deployment. These systems are still in use today.

Following Raytheon, Mr. Tarini took over as CEO of Ocean Data Equipment Corporation where he increased the revenue over 300%. Mr. Tarini oversaw the design and development of a complete line of scientific instruments targeted for geophysical and hydrographic research. Bob also developed a remote sensing technique, which is currently being applied to detecting illicit materials. Mr. Tarini was directly responsible for Ocean Data Equipment being awarded numerous multiple year multi million dollar government contracts.

Dr. Mackin has had an extensive career in DoD Research and Development and Program Acquisition. He has served as the program manager for the Army's Second Generation Thermal Imager (FLIR) and as the Technical Director for the Deputy Undersecretary of Defense for Science and Technology Smart Sensor Web Program, as well as leading various other programs.

Dr. Mackin has also served on various Graybeard panels, as well as two National Academy of Science panels on the use of DoD technology for Homeland Defense. He holds a BS degree in Engineering from the United States Military Academy, a MS in Physics from the Naval Post Graduate School, and a PhD in Physics from MIT. 
 

Financial Highlights For TCNH

To Contact Technest Holdings

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