CompuDyne's Public Safety and Justice Division Signs $1.3 Million Contract with Irving, Texas.

ANNAPOLIS, Md. -- CompuDyne Corporation (Nasdaq:CDCYE), an industry leader in sophisticated security products, integration and technology for the public security markets, announced today that it has signed a contract to provide a new $1.3 million public safety system for the city of Irving, Texas Police Department. CompuDyne - Public Safety & Justice, Inc. of Fremont, CA ("CPS&J"), formerly Tiburon, Inc., is an industry-leading provider of automated public safety and justice systems which meet the demanding and complex needs of law enforcement, fire & rescue, corrections and justice environments.

The city of Irving, a client for many years, wanted to upgrade their existing systems to take advantage of new hardware technology and enhanced functionality. This comprehensive system includes new Computer Aided Dispatch ("CAD"), Records Management ("RMS"), and Correction Management ("CMS") systems to support law enforcement operations for years to come.

The new CAD system will serve the city's police department and will allow dispatchers to respond to and manage citizens' requests for emergency services more efficiently. The new CAD system operates on fully distributed Microsoft Windows(R) workstations, providing server-independent processing of all critical CAD functions and a reliable configuration approaching 100% system availability. If any component fails, the system continues to function. CPS&J has successfully deployed this unique system architecture in several city, county, and state-wide public safety communication centers across the country.

The comprehensive RMS consolidates and automates records processing for the city's police department and the CMS provides correctional administrators the ability to track the status of inmates and manage jail housing for the city's 200-bed jail.

Integral to the city's public safety system is CPS&J's Integrated Justice Solution, which interfaces with existing city and county systems. Through the Integrated Justice Solution, the city of Irving will transfer subject information of adult and juvenile offenders to Dallas County. Using emerging law enforcement XML standards, the flexibility of the new system's web-based user interface allows for enhanced interoperability between city and county systems in the future.

In addition, a comprehensive mobile communications component that includes automated report writing and mobile mapping will be installed in the department's 150 vehicles. Officers will enter and access their accident and case reports while in the field, increasing the speed and accuracy of incident reporting and allowing officers to spend more time in the community. On the mobile map located in the police vehicle, an icon appears on the map when a call for service is dispatched from the communications center, highlighting the location of the incident, surrounding incidents and units in the area.

Work has begun on this important project. CPS&J has installed dozens of similar systems in Texas, including Travis County, City of Arlington, Dallas/Ft. Worth International Airport, City of Grand Prairie, City of Longview and Ft. Bend County.

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.