PROMISSORY NOTE

$1,500,000
                                                              January 2, 2003

     FOR VALUE RECEIVED AND INTENDING TO BE LEGALLY BOUND HEREBY, Zanett,
Inc., a Delaware corporation having its principal place of business at 135
East 57th Street, 15th Floor, New York, NY 10022 (hereinafter referred to,
and obligated as, "Borrower"), promises to pay to the order of Emral Holdings
Limited, c/o Tortola Trust, 2nd floor, Commercial House, Commercial Street,
St. Helier, Jersey JE4 8QS Channel Islands ("Lender"), the principal sum of
$1,500,000, together with interest as set forth below, until the date on
which the principal amount is paid in full, payable in lawful money of the
United States of America in accordance with the terms of this Promissory Note
(the "Note").

1. Maturity Date: The principal balance of this Note and all accrued interest
thereon shall be due and payable on January 2, 2007 (the "Maturity Date").

2. Interest: During the period beginning on the date hereof and ending on the
Maturity Date, interest shall accrue daily on the outstanding principal
amount hereunder at a simple rate of fifteen percent (15%) per annum.
Interest shall be calculated hereunder for the actual number of days that the
principal is outstanding, based on a 360-day year, as applicable.  Interest
shall continue to accrue on the principal balance hereof at the then-
applicable simple rate of interest specified in this Note, notwithstanding
any demand for payment, acceleration and/or the entry of any judgment against
Borrower, until all principal owing hereunder is paid in full.

3. Payment: Interest shall be due quarterly within 15 days of each fiscal
quarter end beginning March 31, 2003.  No payments of principal shall be due
on the Note until the Maturity Date.  All accrued and unpaid interest shall
be paid in cash at the Maturity Date.

4. Prepayments:  Borrower reserves the right to prepay any or all of the
principal balance due on the Note at any time prior to the Maturity Date.

5. Security:   The Note will be an unsecured obligation of Borrower.

6. Lender's Rights Upon Default:  Each of the following events shall
constitute an "Event of Default" and, upon the occurrence thereof, Lender
shall have the option, without the necessity of giving any prior written
notice to Borrower, (1) to accelerate the maturity of this Note and all
amounts payable hereunder and demand immediate payment thereof and (2) to
exercise all of Lender's rights and remedies under this Note or otherwise
available at law or in equity:

     (a) Borrower shall fail to pay the principal amount of the Note or
accrued interest thereon on the Maturity Date;

     (b) Borrower shall admit an inability to pay its debts as they mature,
or shall make a general assignment for the benefit of any of its
creditors;

     (c) Proceedings in bankruptcy by Borrower under the United States
Bankruptcy Code, as amended, or any part thereof, or under any other
laws, whether state or federal, for the relief of debtors, now or
hereafter existing, shall be commenced by Borrower or shall be
commenced against Borrower and shall not be dismissed within sixty (60)
days of commencement;

7. Application of Funds:  All sums realized by Lender on account of this
Note, from whatever source received, shall be applied first to any fees,
costs and expenses (including attorney's fees) incurred by Lender, second to
accrued and unpaid interest, and then to principal.

8. Attorney's Fees and Costs:  In the event that Lender engages an attorney
to represent it in connection with (a) any default by Borrower under this
Note, (b) the enforcement of any of Lender's rights and remedies hereunder,
(c) any bankruptcy or other insolvency proceedings commenced by or against
Borrower and/or (d) any actual litigation arising out of or related to any of
the foregoing, then Borrower shall be liable to and shall reimburse Lender on
demand for all reasonable attorneys' fees, costs and expenses incurred by
Lender in connection with any of the foregoing, provided a final and
unappealable judgment in favor of Lender has been issued in connection
therewith.

9. Governing Law:  This Note is made and delivered in the State of New York
and shall be construed and enforced in accordance with and governed by the
internal laws of the State of New York without regard to conflicts of laws
principles.  Borrower agrees to the exclusive jurisdiction of the federal and
state courts located in the State of New York in connection with any matter
arising hereunder, including the collection and enforcement of this Note.

10. Miscellaneous:

     (a) Borrower hereby waives protest, notice of protest, presentment,
dishonor, notice of dishonor and demand.  To the extent permitted by
law, Borrower hereby waives and releases all errors, defects and
imperfections in any proceedings instituted by Lender under the terms
of this Note.

     (b) The rights and privileges of Lender under this Note shall inure to
the benefit of its successors and assigns.  All representations,
warranties and agreements of Borrower made in connection with this Note
shall bind Borrower's successors and assigns.

     (c) If any provision of this Note shall for any reason be held to be
invalid or unenforceable, such invalidity or unenforceability shall not
affect any other provision hereof, but this Note shall be construed as
if such invalid or unenforceable provision had never been contained
herein.

     (d) The waiver of any Event of Default or the failure of Lender to
exercise any right or remedy to which it may be entitled shall not be
deemed to be a waiver of any subsequent Event of Default or of Lender's
or Lender's right to exercise that or any other right or remedy to
which Lender is entitled.

     (e) The rights and remedies of Lender under this Note  shall be in
addition to any other rights and remedies available to Lender at law or
in equity, all of which may be exercised singly or concurrently.

     (f) Lender shall have the right, without the prior consent of Borrower,
to assign all of Lender's rights and obligations hereunder.

IN WITNESS WHEREOF, Borrower has duly executed this Promissory Note the day
and year first above written and has hereunto set hand and seal.


BORROWER

Zanett, Inc.


by:
     ------------------------

     Jack M. Rapport
     Chief Financial Officer