Zanett Q4 New Contracts Signed Total $13.7 Million; New Healthcare Focus On Target

Quarter over quarter revenue guidance up 10-12%

Jan 13, 2010, 08:30 ET from Zanett, Inc.

NEW YORK, Jan. 13 /PRNewswire-FirstCall/ -- Zanett, Inc. (NasdaqCM: ZANE), a leading consulting firm specializing in business process outsourcing (BPO), IT enabled services (ITES), and information technology (IT) serving Fortune 500 corporations and mid-market organizations, in Healthcare, Life Sciences, Manufacturing & Distribution, Retail, Gaming & Hospitality, and State & Local Government, today announced it has signed 99 new contracts during the fourth quarter worth approximately $13.7 million.

Highlights of the Q4 activity:

  • two contracts worth a total of $3.1 million with two of the nation's leading hospitals and healthcare providers.
  • a $1.7 million agreement with an international airport which ranks in the top 10 in the world in total amount of cargo and accommodates annually more than 4 million passengers.
  • a $1.2 million agreement with a leading global clinical research organization involved in the biopharmaceutical industry.

  • a $1.1 million agreement with a state owned electric and water utility and one of the nation's largest power producers.

Dennis Harkins, President and CFO of Zanett, said, "Although our overall performance in 2009 was not up to our standards, we used the economic downturn to fine tune our focus and reposition our industry expertise in several sectors, including healthcare, life sciences, manufacturing & distribution, retail, gaming & hospitality, and state & local government, which we believe will be winners in 2010.  As a tell-tale sign, we believe that the Q4 contract activity is an indication of the investments we made during 2009. We further believe that these investments, particularly in the healthcare practice, will dramatically impact our operations in 2010. Therefore, we are providing revenue guidance in Q1 of 2010 to be an increase of 10%-12% over the revenue of Q4 of 2009."

As part of Zanett's continued focus on healthcare they will be presenting at the Healthcare Information and Management Systems Society (HIMSS) conference in late February. HIMSS is the healthcare industry's membership organization exclusively focused on providing global leadership for the optimal use of healthcare information technology (IT) and management systems for the betterment of healthcare.

Harkins concluded, "To me, the Q4 contracts and future pipeline are clear indications of our commitment to several key geographic, functional, and industries we had begun to focus on in 2009. Our biggest demand right now is from the healthcare industry.  We have ramped up our specialized resources during the downturn, and now we are supporting many healthcare organizations in using technology to achieve the highest quality care, at the lowest possible cost to the community."

About Zanett, Inc.

Zanett is a leading business process outsourcing (BPO), IT enabled services (ITES), and information technology (IT) consulting firm serving  Fortune 500 corporations and mid-market organizations, in Healthcare, Life Sciences, Manufacturing & Distribution, Retail, Gaming & Hospitality, and State & Local Government.  Zanett helps organizations align business objectives with outsourced technology-enabled services to create Real Enterprise Value™. We serve the Fortune 500 and mid-market organizations, in Healthcare, Life Sciences, Manufacturing & Distribution, Retail, Gaming & Hospitality, and State & Local Government with solutions ranging from business consulting as well as custom business solutions that integrate and implement Oracle's full suite of product offerings - Oracle, JD Edwards, PeopleSoft, Seibel, including infrastructure technology and managed services together with associated Oracle Fusion technologies.  Zanett employs over 225 professionals in North America and Asia with offices in Atlanta, Boston, Cincinnati, Indianapolis, Jacksonville, New York City, North Palm Beach, and Manila.  For more information please visit www.Zanett.com.

Certain statements in this news release regarding projected results of operations, or, projected results of financial plans or future strategies and initiatives, including, but not limited to, projections of revenue, projections of profitability, any and all future expectation, and plans for future activities may and should be regarded as "forward-looking statements'' within the meaning of the Securities Litigation Reform Act. These statements involve, among other things, known and unknown risks, uncertainties and other factors that may cause Zanett, Inc.'s actual results, levels of activity, performance or achievements to be materially different from any future results, levels of activity, performance or achievements expressed or implied by such forward-looking statements. Zanett currently is considering, but in reality may or may not in the future implement any or all of the items and issues listed in any planned budget or strategic initiative, due to, among other things, known and unknown risks, uncertainties and other factors.

Circumstances do change, and if and when the landscape changes, Zanett shall endeavor to remain as flexible as possible, and adjust its strategy accordingly. Zanett, Inc. undertakes no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events, change in strategy, or otherwise. The aforementioned listing of risks and uncertainties is not inclusive. For a more detailed discussion of some, but not all, of the risks and uncertainties that may affect Zanett, Inc., see Zanett, Inc.'s filings with the Securities and Exchange Commission.

Neither Zanett, Inc. nor Zanett Oracle Solutions is a part of, a division of, nor a subsidiary of, nor in any other manner connected with Oracle Corporation, and no implication is made whatsoever to suggest as such.

Dennis Harkins

212-583-0300


SOURCE Zanett, Inc.



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