CT Holdings Reports Results for Quarter Ended March 31, 2001, Reducing Losses to $0.01 Per Share

Parago Announces Revenues for Its First Quarter Ended March 31, 2001 of Approximately $5.3 Million and Closes $8 Million in Debt Financing from Comerica Bank -- Texas

Dallas, TX…May 16, 2001 -- CT Holdings, Inc. (NASDAQ: CITN) announced its financial results for its fiscal quarter ended March 31, 2001. Revenues for the quarter ended March 31, 2001 were $100,707, a decrease of 30.2% from software revenues of $144,278 for the quarter ended March 31, 2000. Revenues do not include any subsidiary revenue from CT Holdings' ownership interest in Parago or River Logic. The Company reported a reduced net loss for the quarter ended March 31, 2001 of $654,476, or $0.01 per share, compared to a net loss of $6,962,097, or $0.16 per share, for the quarter ended March 31, 2000, which included the portion of Parago's losses allocable to CT Holdings for that quarter. CT Holdings continues to hold 20,000,000 shares of Parago common stock.

"We are pleased that both Parago and River Logic recently received financing, which we are excited about given current market conditions, and we remain very positive about their business prospects. We believe that Parago's client value proposition is compelling, its technology is being well received, and its client list continues to grow. Parago continues to expand its business model and a growing client base, while River Logic offers leading edge software solutions which we believe will enhance the way companies will do business in the future," commented Steven B. Solomon, President and Chief Executive Officer of CT Holdings.

Mr. Solomon continued, "Our goal is to focus on CT Holdings as an operating entity in addition to continuing to assist our holdings in the development of their businesses. I am excited about the opportunities available to CT, with our holdings and with our software solutions and other opportunities we are exploring." As CT Holdings recently announced, in order to focus more time on CT's operating activities, Mr. Solomon stepped down as Chairman of Parago, while he remains a Parago board member and continues to consult with Parago on its clients and strategic matters.

For its quarter ended March 31, 2001, Parago reported revenues of approximately $5,300,000, an approximately 59% increase over the first quarter of 2000. Parago has also expanded its client base, including an additional 16 new national accounts during the quarter.

In May 2001, Parago obtained an $8 million term loan from Comerica Bank--Texas. As a condition to the loan, Comerica required a guarantee of Parago's obligations from TH Lee.Putnam Internet Partners, L.P., a Parago venture capital investor. Parago and TH Lee agreed that Parago shareholders (including CT Holdings) who are accredited investors will be offered the opportunity to participate in the guaranty on a pro rata basis. In connection with the participation interest, TH Lee and Parago shareholders who participate would receive their pro rata portion of warrants to purchase shares of Parago's Series A-3 Preferred Stock convertible into 11 million Parago common shares. In addition, in the event that TH Lee and the participants are called upon to make full payment under the guaranty, they would receive shares of Series A-1 Preferred Stock and Series A-2 Preferred Stock, two new series of preferred stock, which would substantially dilute Parago's existing shareholders who do not participate in the Guaranty to approximately 10% of their current ownership percentage. The terms of the participation interest are described in our Quarterly Report on Form 10-QSB for the quarter ended March 31, 2001.

In April 2001, River Logic announced it received an investment led by the Intel® 64 Fund. The Intel 64 Fund investment was made in support of River Logic's commitment to port and tune its Enterprise Optimizer^TM software application to Intel’s IA-64 platform, beginning with the Itanium^TM processor. Other investors contributing in this round of funding include Cardinal Investment, CT Holdings, eMed Ventures, and Mercury Ventures. We participated in the Series C preferred stock issued by River Logic through the conversion of a portion of our convertible notes.

In January 2001, River Logic announced that it entered into a strategic alliance with PricewaterhouseCoopers and Heads Up Systems (HUS) to jointly develop and implement optimization solutions. The alliance was created to better enable River Logic, PricewaterhouseCoopers, and HUS to directly address the increasing challenges facing companies in optimizing performance to maximize value for their stakeholders. River Logic, PricewaterhouseCoopers and HUS will work with clients to identify areas where improved decision-making will have the greatest impact on enterprise profit. The alliance combines the three companies' complementary knowledge and expertise to develop, market, implement, and support Enterprise Optimization Solutionality (EOS)^TM.

About CT Holdings

CT Holdings, Inc. (NASDAQ: CITN), develops and markets its Citadel Technology line of desktop and network security software, and also acts as a developer of early stage companies, including Parago 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^SM, ValueRewards^SM and KnowledgeCenter^SM, 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, Inc. develops decision-support applications for industry. Using COR Technology(TM), 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, 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, call 978.753.5029, or email info@riverlogic.com.

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.

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. Investors are also directed to consider carefully the other risks factors and uncertainties discussed in documents we file with the Securities and Exchange Commission, including our Quarterly Report on Form 10-QSB for the quarter ended March 31, 2001 and our Annual Report on Form 10-KSB for the year ended December 31, 2000. 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 availability of capital to CT Holdings, Parago and River Logic; substantial dilution in the event CT Holdings determines not to participate in the Parago bridge loan participation; risks related to our software business line; 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; general economic conditions; and litigation costs.

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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