CompuDyne Announces a $1.4 Million Award for Signami DCS, Reflects Success in Merging Unique Signals Intercept Technology.

ANNAPOLIS, Md. -- CompuDyne Corporation (NASDAQ:CDCY), an industry leader in sophisticated security products, integration and technology for the public security markets, announced a $1.4 million award from an international client, subject to receipt of appropriate export licenses, for signals intercept products of its newly formed Signami DCS division.

In July 2006, CompuDyne acquired the assets of Signami LLC ("Signami"), for the express purpose of merging their signals intercept and analysis technology with the technology of CompuDyne's Data Control Systems division, a branch of CompuDyne's Integrated Electronic Systems segment. Martin Roenigk, CompuDyne's President and CEO, stated, "When we first met with the management of Signami, we all realized that we had complementary technologies that could be merged to form a valuable intelligence collection product for both national and international agencies. The international award we received today is the first for the converged-technologies product line, and we remain excited about the future of Signami DCS in this large and critical market."

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.