Technest Holdings to sell EOIR subsidiary for up to $34 million

BETHESDA, Md., 14 Sept. 2007.Technest Holdings Inc., a defense and homeland security company, has entered into a Stock Purchase Agreement with EOIR Holdings LLC, a Delaware limited liability company, pursuant to which Technest will sell EOIR Technologies Inc. to LLC.

The sale of EOIR to LLC will be structured as a stock sale in which LLC will acquire all of the outstanding stock of EOIR in exchange for approximately $34 million in cash, $11 million of which will be paid at closing and $23 million of which is contingent upon the successful re-award to EOIR of the contract with the U.S. Army's Night Vision and Electronics Sensors Directorate by December 31, 2009. The award of the NVESD contract is expected at the end of 2007 or early in 2008.