CompuDyne's Public Safety and Justice Unit, Tiburon, Signs Previously Announced $5.6 Million Computer Aided Dispatch System Contract With Detroit, MI.

HANOVER, Md. -- CompuDyne Corporation (NASDAQ:CDCY) an industry leader in sophisticated security products, integration and technology for the public security markets, announced today that it signed a $5.6 million contract with Detroit, MI to provide a comprehensive Computer Aided Dispatch (CAD) and Mobile Dispatch System (MDS) to support the city's law enforcement and fire operations. The award of this project has been previously announced and has been previously included in CompuDyne's backlog. CompuDyne's Public Safety & Justice unit, Tiburon, is an industry-leading provider of automated public safety and justice systems to meet the demanding and complex needs of law enforcement, fire & rescue, corrections and justice environments.

"We are excited to begin working with Tiburon on this important project for the City," says Deputy Chief Gloria H. Reynolds. "The City needs a functionally robust and reliable dispatch system to meet the increasing needs of the police and fire departments." The new CAD system will allow dispatchers to respond to and manage 9-1-1 calls more efficiently. The system provides server-independent processing of all critical functions and a reliable configuration for nearly 100% uptime. The distributed system effectively places a complete desktop CAD system in front of each user and provides automatic and efficient synchronization for each workstation. If any component fails, the system continues to function.

A comprehensive mobile communications component that includes mobile mapping and automatic vehicle location for all police units is part of the new technology being installed. When a call for service is dispatched from the communications center to a mobile unit, an icon appears on the mobile map highlighting the location of the incident, surrounding incidents and units in the area. Devices installed in the police vehicles track the exact location of the vehicle and assist in determining the shortest route to the incident.

The CAD and MDS components are phase two of a multi-million dollar public safety project for the City of Detroit. Tiburon is currently providing and installing laptop computers and mobile printers in 400 police patrol vehicles and 100 fire apparatus. Tiburon has also been selected to provide a records management system to support the city's fire and rescue operations.

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, the Company's ability to secure new contracts and the risks inherent in CompuDyne's business and future uncertainties which are further described in its filings with the Securities and Exchange Commission, such as the Company's Form 10-K, Form 10-Q, and Form 8-K reports.