CT HOLDINGS REPORTS RESULTS FOR SECOND QUARTER ENDED AUGUST 31, 2000

Parago Announces Record Revenues for its Third Quarter Ended September 30, 2000

Dallas, TX…October 16, 2000 -- CT Holdings, Inc. (NASDAQ: CITN), an incubator of Internet and Internet telephony services companies, announced its financial results for its fiscal quarter ended August 31, 2000.

Revenues for the quarter ended August 31, 2000 were $175,360, a decrease of 80.6% from software revenues of $901,819 for the quarter ended August 31, 1999. Revenues do not include any subsidiary revenue from CT Holdings' investments. The Company reported a net loss for the quarter ended August 31, 2000 of $609,733, or $0.01 per share, compared to a net loss of $2,677,593, or $0.06 per share, for the quarter ended August 31, 1999, which included Parago’s losses for that quarter. The company continues to hold 20,000,000 shares of Parago.

"Our business operations and plan continue to develop positively. Parago continues to expand its business model, recording record revenues and a growing client base, while River Logic, offering leading edge software solutions, continues to be well–received by business clients," commented Steven B. Solomon, President and Chief Executive Officer of CT Holdings.

Recent highlights for CT' its incubator projects include the following:

· For its quarter ended September 30, 2000, Parago reported record revenues of approximately $5,600,000, a 137% increase over the 1999 third quarter and a 40% sequential increase from the second quarter of 2000. Parago has also increased the number of its clients to approximately 180 as of September 30, 2000, which include leading national retailers, manufacturers and service providers, from approximately 160 clients at the end of the prior quarter.

· Parago opened its 32,000 square foot state-of-the-art Data Center and R&D lab in Coppell, Texas (near the DFW Airport) in July, 2000. This world class facility houses Parago's technology design and architecture team, usability lab, testing lab, and quality assurance.

· In July 2000, River Logic closed a $3 million private placement of shares of its Series B preferred stock to a venture capital firm that specializes in early stage technology firms that offer B2B Internet solutions that provide strong value-oriented models for their prospective market-space.

· In addition, one of River Logic's resellers, Heads Up! Systems, LLC, and Price Waterhouse Coopers, LLC entered into a strategic alliance offering clients of process- and supply-chain modeling applications reliability in the use of enterprise modeling tools. New software such as COR Technology(C) by River Logic, provides business planners and managers with the ability to identify profit improvement opportunities, design and communicate supply chain and business process information, and to develop model-based tactical and strategic plans.

Recent highlights for CT Holdings include the following:

· CT Holdings announced the appointment of Phil Romano, a leading serial entrepreneur in the Restaurant and Technology Industries, to its Board of Directors.

· CT Holdings recently entered into a letter of intent with PerClick.com, Inc. which develops and markets billing and customer management software to Internet telephony service providers. CT Holdings currently anticipate that this transaction will close in the fourth quarter of calendar 2000, subject to completion of due diligence review, negotiation of acceptable documentation, and approvals by the boards of directors of the companies.

· In the quarter ended August 31, 2000, CT Holdings determined not to proceed with the previously announced letter of intent with ideavillage.com, based on the results of extensive due diligence review, and mutually agreed with ideavillage.com to terminate the letter of intent.

About CT Holdings

CT Holdings, Inc. (NASDAQ: CITN), is an early stage Internet and Internet telephony services (www.ct-holdings.com).

Parago, Inc. is a subsidiary of CT Holdings, Inc. (NASDAQ: CITN). The company was founded in January 1999 and is headquartered in Dallas with offices in Silicon Valley and Los Angeles and with more than 400 employees. Parago has developed a continuous customer interaction model that automates promotional management and optimizes the customer care experience for its clients. Parago, an application solution provider (ASP) and Internet based business process outsourcer (BPO) provides an on-line suite of promotional offerings designed to increase sales, reduce costs, and retain customers, thereby increasing customer profitability. Parago’s solutions and services include PromoCenter (on-line promotional management, on-line rebate processing, proactive e-mail, and on-line surveys), InfoCenter (online product demonstrations and manuals), and KnowledgeCenter (customer data warehousing, analysis and reporting).

About River Logic

River Logic, Inc. (www.riverlogic.com), headquartered in Beverly, Massachusetts, creates and operates integrated networks of decision support tools, eLearning solutions, and eCommerce capabilities designed to enable decision-makers to leverage knowledge and information to gain a decisive competitive advantage. By providing the knowledge databases needed to leverage its proprietary, web-enabled, industry standard decision support tools (COR Vantage™), River Logic, offers one of the most comprehensive and technologically advanced value-added decision support networks available today.

For more information on CT Holdings, its Internet subsidiaries, and its Citadel Technology line of security software products, please visit our Web site at http://www.ct-holdings.com. For information on purchasing products, contact us directly by writing or calling: CT Holdings, 3811 Turtle Creek Blvd., Suite 770, Dallas, Texas 75219; phone: 214/520.9292; fax: 214/520.9293. For media or investor relations contact: Shayne Payne or Dian Griesel Ph.D. at The Investor Relations Group. 212/736.2650.

Forward-Looking Statements: This news release contains forward-looking statements, which involve risks and uncertainties. Accordingly, no assurances can be given that the actual events and results will not be materially different that the anticipated results described in the forward-looking statements. There are a number of important factors that could cause actual results to differ materially from those expressed in any forward-looking statement made by us. These factors include our and our subsidiaries’ success in integrating the business and operations of acquired companies and interests; no assurances of an initial public offering based on market conditions and suitable underwriters; availability of suitable incubator companies; implementation of Internet strategies; the activities of new or existing competitors; the ability to attract and retain employees and strategic partners; application of state unclaimed property or escheat laws; the availability of capital on terms acceptable to the Company; general economic conditions; and litigation costs. Investors are also directed to consider other risks and uncertainties discussed in documents we file with the Securities and Exchange Commission.

The Company undertakes no obligation to publicly release the result of any revisions to these forward-looking statements, which may be made to reflect events or circumstances after the date hereof or to reflect the occurrence of unanticipated events.