Ernst & Young Retired Partner William Church Added to Zanett Board of Directors; Mr. Church to Chair the Audit Committee

Business Wire, Sept 9, 2004

NEW YORK -- ZANETT, INC. (NASDAQ: ZANE) today announced the appointment of William H. Church to its Board of Directors in the role of Audit Committee Chairman. The former Board Member in that capacity, Dr. Drew Schiff, is retiring from the Board after three years of highly valued service, to pursue other personal endeavors. The number of Members of the Board of Directors to Zanett Inc remains unchanged at six.

Mr. William Church has over 30 years of experience advising management and Boards of Directors of high growth publicly traded companies. He is a retired Ernst & Young partner and was instrumental in the establishment and successful development of the Ernst & Young Tax and Human Capital Practice in the New York Metro Area and in Tokyo, Japan.

David McCarthy, CEO of Zanett, commented, "Bill has distinguished himself by providing outstanding client service for major companies such as Lockheed Martin Corporation, The Bank of New York, UBS, Computer Associates and Pfizer. He not only brings to Zanett his 30 years of financial expertise but also tremendous depth in the areas of compliance and corporate governance."

Claudio Guazzoni, President of Zanett, added, "We have appreciated the participation of Dr. Drew Schiff to the Board of Directors over the past 3 years, and applaud the contribution he has made to a then nascent company. His vision and commitment were instrumental in the development of Zanett from a start-up to a viable $100 million market cap concern."

Mr. Guazzoni added, "We look forward to Bill Church joining the Board. Bill's strong financial background and extensive experience advising high growth, entrepreneurial, technology-based companies are key assets to Zanett as we develop the IT Commonwealth(TM) in the years to come".

Mr. Church received a B.A. degree from Marquette University. He is a Certified Public Accountant in New York and Wisconsin, a member of the American Institute of Certified Public Accountants and the New York State Society of Certified Public Accountants.

About Zanett, Inc. (www.zanettinc.com)

Zanett is an information technology ("IT") holding company that through its operating subsidiaries provides specialized IT services to Fortune 500 caliber and middle market companies, and large Government agencies. Collectively, the operating companies are referred to as the IT Commonwealth(TM).

Certain statements in this news release regarding future expectations and plans for future activities may be regarded as "forward looking statements" within the meaning of the Securities Litigation Reform Act. These statements involve, among other things, known and unknown risks, uncertainties and other factors that may cause Zanett, Inc.'s actual results, levels of activity, performance or achievements to be materially different from any future results, levels of activity, performance or achievements expressed or implied by such forward-looking statements. Zanett, Inc. undertakes no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise. For a more detailed discussion of some of the foregoing risks and uncertainties, see Zanett, Inc.'s filings with the Securities and Exchange Commission.