CompuDyne Announces $13.2 Million of New Awards for December, 2006.

ANNAPOLIS, MD. -- CompuDyne Corporation (NASDAQ: CDCY), an industry leader in sophisticated security products, integration and technology for the public security markets, announced that it had a total of $13.2 million in new awards during the month of December, 2006.

Institutional Security Systems reported awards of $5.0 million for the month. This includes a $2 million project for the Virginia Center for Behavioral Rehabilitation.

Public Safety & Justice had $5.1 million in selection awards and maintenance renewals.

Attack Protection had $1.4 million of new awards during the month.

Integrated Electronic Systems had $1.7 million in awards. This does not include the full impact of the $25.0 million five-year contract confirmed and announced in December 2006 for the Bureau of Engraving and Printing since that award is again being protested by the previous vendor. December awards for IES were split $0.9 million for Quanta Systems and $0.8 million for our signals intelligence business, Signami DCS.

The expected projects "pipelines" at all of our businesses remain quite active.

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 remain in compliance with its bank covenants, delays in government procurement processes, inability 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, the Company's ability to realize anticipated cost savings, the Company's ability to simplify its structure and modify its strategic objectives, 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.