Contact:        Steven B. Solomon

Chairman and CEO

CT Holdings, Inc.

214-520-9292 p

214-520-0034 f

ssolomon@citadel.com

www.ct-holdings.com

CT Holdings Announces Appointment of Major General (Ret.) Jack Leide to the Board of Directors of Citadel Security

General Leide, a leading government and military intelligence and security expert, joins board of spinoff company

Dallas, Texas, December 4, 2001 – CT Holdings, Inc. (OTCBB: CITN), today announced the appointment of Major General (Ret.) Jack Leide to the board of directors of Citadel Security, the proposed spinoff company that develops and markets computer security and privacy software for one of the fastest growing segments today -- security “inside the firewall.”

 Steven B. Solomon, Chief Executive Officer of CT Holdings and Citadel Security, said, "The addition of General Jack Leide to the Citadel Security board of directors adds a wealth of government relationships in the intelligence agencies and the military, as well as extensive business experience and industry contacts. We believe that General Leide’s decision to become involved with Citadel Security will be an invaluable asset to our future progress and our business model. The addition of General Leide to the board in preparation for the spinoff adds to the strength of the new board directors, which will include Lawrence Lacerte and Phil Romano. General Leide’s extensive intelligence and security experience and contacts will enhance our ability to leverage new government relationships and expand our existing relationships."

Jack Leide is presently the President of Appenine Associates Ltd., an international defense and security services company that consults with government intelligence and operational agencies, on strategic and security matters.  He previously served as Executive Vice President of Avenue Technologies of Alexandria, Virginia from 1997 to 1999.  Upon retirement from the U.S. Army in 1995, General Leide was the President of Global Information Technologies strategic business unit with Electronic Data Systems (EDS) until 1997 when he joined Avenue Technologies.  General Leide also serves as a Senior Executive Advisor to General Dynamics Land Systems and Senior Consultant to various Washington-based governmental and business organizations.  His long and distinguished military career includes service to the country in security and intelligence matters for more than 30 years. Among his recent assignments, General Leide performed duties as Director of Intelligence, J-2, United States Central Command, and served as chief of intelligence in the Gulf War for General Schwarzkopf throughout Operations Desert Shield and Desert Storm. In his last military position before retiring as an Army Major General in August 1995, General Leide was Director, National Military Intelligence Collection Center (NMICC); Director, Central MASINT (Measurements and Signatures) Office: Director, Defense Human Intelligence Service (DHS), for the Department of Defense.

General Leide said, "With the recent developments at Citadel Security, I am delighted to serve as a director at this exciting time in the company's development. I look forward to working with Steve Solomon and the Citadel Security team to help achieve the vision of positioning Citadel Security as a leading security software firm for the future.  Citadel’s software products are a valuable first line of defense as a part of the solution for government and business needs for heightened security in the current environment."

About Citadel Security

CT Holdings' Citadel Security develops and markets computer security and privacy software for one of the fastest growing segments today -- security “inside the firewall.” These products enable companies to enforce security policies from a single point of control across all Windows and NetWare platforms. Citadel Security software secures confidential information, applications, and systems from unauthorized access, worms, and other security vulnerabilities. The products specifically enforce policies recently mandated by HIPAA and Gramm-Leach-Bliley legislation for the health care and financial industries. Citadel's clients include IBM Global Services, Merrill Lynch, the U.S. Navy and several large health care companies.

About CT Holdings

CT Holdings, Inc. develops and markets its Citadel Security line of desktop and network security software, and also acts as a developer of early stage companies, including Parago and River Logic.

Safe Harbor/Forward-looking Statements

Except for the historical information contained herein, this news release contains forward-looking statements that are subject to risks and uncertainties, including risks associated with the events required to occur before the consummation of the distribution, lack of Citadel Security operating history, and the uncertainty of future profitability of Citadel Security. These and other risks are detailed from time to time in CT Holdings' SEC reports, including the report on Form 10-KSB for the year ended December 31, 2000 and its most recent Form 10-QSBs, as well as in the Registration Statement on Form 10-SB, to be filed by Citadel Security in connection with the proposed distribution.

For further information, contact: Steven B. Solomon Chairman and CEO CT Holdings, Inc. 214-520-9292 p 214-520-0034 f ssolomon@citadel.com http://www.ct-holdings.com or Mathew Henderson, CEOcast, Inc. for CT Holdings at 212-732-4300x225.

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