Steve Solomon Steps Down as Chairman and Will Remain as a Member of the Board of Directors of Parago; Will Continue to Focus Time and Energy on Improving Shareholder Value and New CT Holdings Opportunities

DALLAS, TX - May 15, 2001 -- CT Holdings, Inc. (Nasdaq: CITN) and its subsidiary Parago, Inc. today announced that CT Holdings' CEO, Steve Solomon, has relinquished his role as Chairman of Parago in order to devote substantially more time to pursuing opportunities for CT Holdings, Parago's parent company. Parago’s operating duties will be assumed by Ken Johnsen, President and Chief Executive Officer of Parago. As founder of Parago, Mr. Solomon has served as Chairman of Parago since its formation in January 1999 and previously served as Parago's Chief Executive Officer until August 2000. Mr. Solomon will remain on the board of directors of Parago and will continue to consult with Parago and assist as needed with Parago clients and on strategic matters.

"Parago is an exceptional company with a very exciting business model. I have thoroughly enjoyed working with the Parago family to grow the business," said Steve Solomon. “As a company, CT Holdings has benefited greatly from the success of Parago’s business model and one of our other holdings, River Logic, which recently announced the closing of a $7.5 million dollar strategic investment led by Intel. There are many new opportunities that are being considered and explored, and as a result, it is important to refocus our attention on CT Holdings’ opportunities and redouble our efforts to substantially improve shareholder value. I feel confident in making this move because I have assembled a strong management team at Parago and I feel that they can continue to build on what we have created."

"I would like to thank Steve on behalf of all of us here at Parago for his many contributions during his time as Founder, Chairman and CEO," said Ken Johnsen, Parago's President and Chief Executive Officer. "Steve's vision and dedication are in large part what has made Parago what it is today, and we look forward to continuing to work with Steve as a director and advisor of our Board.”

About CT Holdings

CT Holdings, Inc. (NASDAQ: CITN), is a developer of early stage companies, including Parago, Inc. and River Logic. For more information on CT Holdings, our Internet holdings, and our Citadel Technology line of security software products, please visit our Web site at www.ct-holdings.com .

About Parago

Parago's patent-pending technology platform and processes represent an innovative approach designed to improve the promotional marketing industry. Parago provides a range of Internet-based customer relationship management products, PromoCenter, ValueRewards and KnowledgeCenter, that are created to increase sales, reduce costs, enhance customer retention for its clients, and improve loyalty. These products comprise Parago's Continuous Customer Interaction^SM model, which helps retailers, manufacturers and service organizations reduce the cost of conducting promotions and drive incremental revenue by cross-selling and upselling new products and services. During the relationship management process, Parago captures fresh, accurate, and usable transaction and buyer demographic data that can be used by its clients to improve their promotional marketing programs. Parago maintains a web site at www.parago.com.

About River Logic

River Logic develops decision-support applications for industry. Using COR TechnologyÔ, a rapid-application development system, developers at River Logic create applications that enable industry professionals to model complex enterprises and explore financial relationships on a desktop computer or laptop. Embedded analytics allow end-users to understand the financial implications of critical business decisions easily by manipulating graphical icons that model their enterprise.

Headquartered in Beverly, Massachusetts, with offices in Atlanta, Austin, Dallas, and Portland, River Logic is a privately held corporation receiving venture capital support from Cardinal Investment, Inc., CT Holdings (NASDAQ:CITN), EBSCO CASIAS, eMed Ventures, Intel Capital, and Mercury Ventures. The company's solution incorporates several patented technologies and leverages research originally conducted at University of Massachusetts and the Russian Academy of Sciences.

To learn more about River Logic, visit www.riverlogic.com or call (678) 353-2080.

About the Intel 64 Fund

The Intel 64 Fund is a quarter-billion dollar equity investment fund that invests in technology companies developing innovative enterprise solutions for Itanium™-based servers and workstations. The Fund invests in companies developing tools and technologies for Internet, enterprise, and workstation solutions. Example application areas include e-commerce, Internet infrastructure, advanced enterprise resource planning, design automation, and financial applications and services. Fund investments require a commitment to develop products optimized for the Itanium™ Processor Family and running on shrink-wrap operating systems. Co-investors in the Intel 64 Fund include Compaq, Dell, Hewlett-Packard, Intel, NEC, and SGI, with Intel coordinating the Fund activities.

Intel works closely with Fund investors to identify potential portfolio companies and to actively support the companies' product development activities once an investment is completed. The Intel 64 Fund creates regular opportunities for high-level interaction between portfolio companies and Fund investors. This interaction is intended to foster dialogue as to how portfolio company products can better meet the requirements of tomorrow's demanding IT environment utilizing using Itanium-based platforms.

To learn more about the Intel 64 Fund, visit www.intel.com/capital/.]

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 the Company's failure to remain in compliance with Nasdaq's other listing requirements in addition to the minimum bid requirement, the Company's decision not to pursue continued listing on the Nasdaq SmallCap Market, a decision by the Nasdaq Listing Qualifications Panel to delist the Company's common stock from the Nasdaq SmallCap Market, and, in the event of delisting, a decision by the Company not to attempt to have its common stock traded on the OTC Bulletin Board, there may not be market makers for the shares of common stock and an active market may not continue to exist, as well as other risk factors. Investors are also encouraged to read the "Risk Factors" section of the Company's Annual Report on Form 10-KSB for the year ended February 29, 2000, and the Company's Quarterly Report on Form 10-QSB for the quarter ended September 30, 2000, and the Company's other filings, which are on 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.

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