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Technest Holdings, Inc. to Acquire AccelPath, LLC; Issue Contingent Value Rights to Common Stockholders; and Issue Shares of Its Series E 5% Convertible Preferred Stock
Date:1/14/2011

LP for a purchase price of $300,000.  The shares of Series E Preferred Stock will be issued in three closings over a 90-day period beginning on the closing of the AccelPath transaction.  The Series E Preferred Stock will be convertible into 6,754,173 shares of Technest's common stock.  In addition, holders of Series E Preferred Stock are entitled to receive a five percent (5%) cumulative dividends on the preferred stock.   Southridge Partners, LP and its affiliates are currently the holder of a majority of Technest's shares of common stock.

About Technest Holdings, Inc.

Technest, based in Bethesda, Maryland, is in the business of designing, researching, developing, integrating, selling and supporting three-dimensional imaging devices and systems and intelligent surveillance devices and systems, and three-dimensional facial recognition in the healthcare and security industries.  Historically, Technest's largest customers have been the National Institutes of Health and the Department of Defense.  For more information, please visit Technest's website at http://www.technestinc.com.

About AccelPath, LLC

AccelPath, based in Westwood, Massachusetts, is pursuing opportunities in telemedicine, primarily providing digital telepathology and other services to laboratories and hospitals.  The company was formed in 2008 and has been developing and testing its system consisting of commercially available  advanced digital scanning equipment in conjunction with its proprietary workflow to remotely and securely provide a wide range of pathology services, including professional interpretations, second opinions, consultations and laboratory development consulting.  The company has been testing this system at its first customer site and expects to expand its marketing efforts in the near future.  For more information, please visit AccelPath's w
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