City of Albuquerque, NM, Has Recommended for Award a $4.1 Million Contract to CompuDyne-Public Safety and Justice.

ANNAPOLIS, Md. -- CompuDyne Corporation (Nasdaq:CDCYE), an industry leader in sophisticated security products, integration and technology for the public security markets, announced today that the city of Albuquerque, New Mexico has recommended for award a $4.1 million contract for a Computer Aided Dispatch and Records Management System to CompuDyne-Public Safety and Justice, Inc. (formerly, Tiburon, Inc.). CompuDyne-Public Safety and Justice is a leading provider of automated public safety and justice systems which meet the demanding and complex needs of law enforcement, fire & rescue, corrections and justice agencies.

The new Computer Aided Dispatch system will serve both Albuquerque's Police and Fire departments and will allow dispatchers to respond to and manage citizens' requests for emergency services more efficiently. The comprehensive Records Management System will consolidate and automate records processing and criminal investigations for the Albuquerque Police and the Bernalillo County Sheriff's Departments; helping officers solve crimes and track suspects that inevitably cross city and county boundaries. CompuDyne has successfully deployed similar comprehensive public safety systems to hundreds of city, county, and state-wide public safety agencies across the United States.

Certain statements made in this press release constitute "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995, including those statements concerning the Company's expectations with respect to future operating results and other events. Although the Company believes it has a reasonable basis for these forward-looking statements, these statements involve risks and uncertainties that cannot be predicted or quantified and consequently, actual results may differ materially from those expressed or implied by such forward-looking statements. Factors which could cause actual results to differ from expectations include, among others, capital spending patterns of the security market and the demand for the Company's products, competitive factors and pricing pressures, changes in legislation, regulatory requirements, government budget problems, the Company's ability to secure new contracts, the ability to successfully grow the Company by completing acquisitions, the ability to remain in compliance with its bank covenants, delays in government procurement processes, ability to obtain bid, payment and performance bonds on various of the Company's projects, technological change or difficulties, the ability to refinance debt when it becomes due, product development risks, commercialization difficulties, adverse results in litigation, the level of product returns, the amount of remedial work needed to be performed, costs of compliance with Sarbanes-Oxley requirements and the impact of the failure to comply with such requirements, risks associated with internal control weaknesses identified in complying with Section 404 of Sarbanes-Oxley, and general economic conditions. Risks inherent in the Company's business and with respect to future uncertainties are further described in its other filings with the Securities Exchange Commission, such as the Company's Form 10-K, Form 10-Q, and Form 8-K reports.