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Southridge Funds Facilitate Special Capital Distribution for Technest Shareholders
Date:1/19/2010

NEW YORK, Jan. 19 /PRNewswire/ -- Technest Holdings, Inc. (OTC Bulletin Board: TCNH) announced that FINRA has determined that the ex-dividend date will be January 19, 2010 for the special "return of capital" cash distribution declared by its Board of Directors on December 23, 2009. The ex-dividend date is the date on or after which the security begins to trade without the right to receive the dividend payment. The cash dividend of $0.407 per share of Common Stock is payable on January 15, 2010 to shareholders of record as of January 4, 2010. This distribution relates to the sale of EOIR Technologies, Inc. as previously announced.

"Southridge-managed funds, as controlling shareholders and whose principals served on the Technest Board of Directors, have been instrumental in successfully resolving the arbitration matter on behalf of all Technest shareholders which has led to this distribution. We are pleased that our efforts will assist the company in moving forward," said Stephen Hicks, Chairman Southridge LLC.  

Prior to year end Technest Holdings, Inc. entered into a settlement agreement with EOIR Holdings, LLC and EOIR Technologies, Inc. ("EOIR"), settling all claims related to the Stock Purchase Agreement ("SPA") which the parties entered into in 2007 to effectuate the sale of EOIR, a subsidiary of Technest at the time.

About Southridge LLC

Southridge LLC is a diversified financial holding company offering a wide range of
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