CompuDyne Announces $9.0 Million of New Awards for March, Public Safety & Justice Division Also Receives $4.1 Million Intent to Award, Integrated Electronics Division Receives $25.4 Million Multi-Year Contract That Is Under Protest.

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 total awards of $9.0 million during the month of March, 2005.

CompuDyne-Public Safety & Justice ("PS&J") had $4.2 million in awards and maintenance renewals, including $1.3 million for a county project in California. PS&J also received a formal notice of intent to award a $4.1 million project for a large city, this project will not be included in awards until it is formally authorized.

Attack Protection had $2.0 million of awards in March. Eighteen new embassy and related projects are scheduled to be bid during the second half of 2005.

Institutional Security Systems ("ISS") reported net awards of $2.5 million including a $1.4 million project for the North Carolina Central Regional Psychiatric Hospital. ISS believes it is low bidder on two other significant jobs which are yet to be awarded. Requests for quotes and bids on large (over $1 million) projects have increased significantly since the beginning of the year.

CompuDyne-Integrated Electronics Division ("IED") (formerly Federal Security Systems) had $0.3 million of awards. IED also received a contract from a U.S. Government Agency for $4.8 million in the first year and a total of $25.4 million over the five-year term of the annually renewable contract. The incumbent contractor has protested the award of this contract, and it is CompuDyne's policy not to include awards under protest in its reported backlog. CompuDyne expects to prevail over the protest, however there is no assurance of the final outcome.

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, competitive factors, pricing measures, regulatory requirements, the Company's ability to secure new contracts, risks associated with internal control weaknesses identified in complying with Section 404 of Sarbanes-Oxley, costs related to potential acquisitions, the level of product returns, the costs associated with work to be performed pursuant to Section 404, 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.