CT Holdings subsidiary Citadel Security Software Announces Record Date for Planned Spin-off Distribution

DALLAS, TX, April 10, 2002 -- CT Holdings, Inc. (OTCBB: CITN) subsidiary Citadel Security Software Inc. today announced that it has set May 10, 2002 as the record date for its proposed spin-off distribution from CT Holdings.

Citadel Security Software has filed a Registration Statement on Form 10-SB and two amendments with the SEC. The filings are available via the EDGAR system on the SEC website, www.sec.gov, or through Citadel's web site, www.citadel.com. As previously disclosed, the board of directors of CT Holdings has approved a pro rata distribution to CT Holdings stockholders of 100% of the outstanding shares of common stock of Citadel Security Software Inc., which is currently a wholly owned subsidiary of CT Holdings. Citadel will own and operate the security software business of CT Holdings as an independent publicly traded entity following the distribution. Following the distribution, CT Holdings' stockholders will continue to own their shares of CT Holdings as well as the new shares of Citadel.

Steven B. Solomon, CEO of CT Holdings and Citadel, commented, "We believe that the distribution will meaningfully enhance value for CT Holdings stockholders and will give Citadel the financial and operational flexibility to take advantage of significant growth opportunities in the security software business."

"We believe that separating the two companies will enhance the ability of each of Citadel and CT Holdings to focus on strategic initiatives and new business opportunities, as well as to improve cost structures and operating efficiencies and to design equity-based compensation programs targeted to its own performance," Mr. Solomon continued. "In addition, we expect that the transition to an independent company will heighten Citadel's management's focus, provide Citadel with greater access to capital, and allow the investment community to better measure Citadel's performance relative to its peers."

Recent highlights for Citadel include the March 2002 release of its new Hercules software, its automated vulnerability remediation solution, that can automatically deploy and effect the resolution of system vulnerabilities identified by industry leading vulnerability assessment tools. Additionally, in March 2002 Richard Connelly and Billy Austin joined the Company as Chief Financial Officer and Executive Vice President of Sales respectively. Mr. Connelly brings 27 years of high technology financial management experience including as CFO for 3 venture funded software/ Internet companies and as Vice President Controller of Sterling Software, a $500 million NYSE company acquired in 2000. Mr. Austin brings 12 years of security software sales experience having managed sales and marketing organizations at Intrusion.com and the business development and sales functions at Enstar Security Consulting.

Each CT Holdings stockholder as of the record date for the distribution, will receive one Citadel share for every four CT Holdings shares held on that date. It is anticipated that Citadel's shares will trade on the Over The Counter Bulletin Board market, under a symbol to be assigned prior to the commencement of trading.

The information statement that was filed with the SEC describes the distribution and provides important financial and other information about Citadel Security Software, including risk factors related to Citadel Security Software and the distribution. The distribution is conditioned upon the Securities and Exchange Commission declaring effective the Registration Statement on Form 10-SB filed by Citadel Security Software with respect to its shares of common stock.

About Citadel Security Software

Citadel Security Software develops, markets and licenses 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 remediates vulnerabilities and secures confidential information, applications, and systems from unauthorized access, worms, and other security vulnerabilities. The products specifically enforce policies mandated by HIPAA and Gramm-Leach-Bliley legislation for the health care and financial industries. Citadel's clients include IBM Global Services, Washington Mutual, Merrill Lynch, the U.S. Navy and several large health care companies.

Further information about Citadel Security Software and its products can be accessed at its web site, www.citadel.com.

About CT Holdings

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

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 distribution, underlying assumptions or expectations related to the spin-off transaction proving to be inaccurate or unrealized, the timing of the Securities and Exchange Commission's review of the registration statement on Form 10-SB, the uncertainty of general business and economic conditions, unexpected developments and outcomes in the company's legal proceedings, lack of Citadel Security Software operating history, and the uncertainty of profitability of Citadel Security Software. These and other risks are detailed from time to time in CT Holdings' SEC reports, including the report on Form 1O-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, filed by Citadel Security Software in connection with the proposed distribution.