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TCNH ($.21) wins $23M arbitration award


...equal to about $1/share. And the company intends to payout a "portion" of that amount when collected.

I've been waiting on this one for over a year!

http://investorshub.advfn.com/boards/read_msg.aspx?message_id=29605289&txt2find=tcnh

Technest Wins Unanimous Binding Arbitration Award of Over $23 Million

BETHESDA, MD -- (MARKETWIRE) -- 08/24/09 --
On August 21, 2009, an American Arbitration Association Panel of three
arbitrators awarded Technest Holdings, Inc. (OTCBB: TCNH) $23,778,402.83
following a seven-day hearing that ended on June 30, 2009. Technest filed a
demand for arbitration on September 24, 2008 against EOIR Holdings LLC, an
affiliate of The White Oak Group, Inc., for breach of the Stock Purchase
Agreement ("SPA") which the parties entered into in 2007 to effectuate the
sale of EOIR Technologies, Inc. ("EOIR"), a subsidiary of Technest at the
time, in exchange for approximately $34 million. Technest alleged in its
demand that EOIR Holdings LLC breached the SPA when it failed to pay to
Technest approximately $23 million of the purchase price, which became due
upon the successful award to EOIR of the follow-on of an existing contract
with the U.S. Army's Night Vision and Electronic Sensors Directorate. EOIR
Holdings LLC alleged that the amount was not due because the award of the
contract to EOIR did not meet the requirements for payment under the SPA.
However, the arbitration panel unanimously agreed with Technest and ruled
that EOIR Holdings LLC "breached the SPA and must pay [Technest] the
remainder of the purchase price" in the amount of $23,778,402.83. While this
award is final and binding, collection of the award remains subject to
confirmation and enforcement.
The lead attorney for Technest, Carmine Zarlenga of Howrey LLP in
Washington, stated, "This was a hard fought battle involving a very
important issue for our client with two-thirds of the purchase price for a
valuable subsidiary at stake. Obviously, we are very pleased with the award
in favor of our client. It's clear from the 13-page ruling accompanying the
award that the arbitrators gave thorough consideration to all of the
evidence and that a just and fair outcome was reached. When you call a
client with news of this sort, as I had the good fortune to do this morning,
it really doesn't get any better than that."
Gino M. Pereira, the Chief Executive Officer of Technest, stated, "We are
very pleased with the outcome of the arbitration which vindicates our
position. We now look forward to continuing to grow Technest's world class
advanced imaging solutions."
As previously announced, Technest remains committed to distributing a
portion of its proceeds to its stockholders in accordance with the Release
Agreement dated August 31, 2007 with Southridge, Technest's largest
stockholder.
About Technest Holdings, Inc.
Technest Holdings, Inc. is a provider of: advanced remote sensor systems,
intelligent surveillance and advanced 3D imaging technology solutions to the
defense, homeland security and healthcare marketplaces. Technest is
committed to setting next-generation imaging standards through the provision
of innovative emerging technologies. Through strategic development, Technest
focuses on the creation of dual-use technology and products with
applications in healthcare as well as the fields of defense, civilian
homeland security and law enforcement. For more information, please visit
the company's website at http://www.technestinc.com.
Investors are cautioned that certain statements contained in this press
release are "forward-looking" statements within the meaning of the Private
Securities Litigation Reform Act of 1995 (the "Act"). Forward-looking
statements include statements which are predictive in nature, which depend
upon or refer to future events or conditions, which include words such as
"expects," "anticipates," "intends," "plans," "believes," "estimates," or
similar expressions. In addition, any statements concerning the anticipated
proceeds, future financial performance (including future revenues, earnings
or growth rates), and possible future actions, which may be provided by
management, are also forward-looking statements as defined by the Act.
Forward-looking statements are based upon current expectations and
projections about future events and are subject to risks, uncertainties, and
assumptions about Technest Holdings, its products, economic and market
factors and the industries in which Technest Holdings does business, among
other things. These statements are not guarantees of future performance and
Technest Holdings has no specific intention to update these statements. More
detailed information about those factors is contained in Technest Holdings'
filings with the Securities and Exchange Commission. http://www.sec.gov
Contact: Stanley Wunderlich CEO Consulting for Strategic Growth 1 T:
1-800-625-2236 F: 1-646-205-7771 Email: [e-mail] Web site: www.cfsg1.c