CompuDyne Corporation Names Head of New Homeland Security Initiative.

Bert Jones Spearheads Company-Wide Program to Market to Government

ANNAPOLIS, Md. -- CompuDyne Corporation (NASDAQ:CDCY), an industry leader in sophisticated security products, integration and technology for the public security markets, announced today the launch of a Homeland Security Initiative, a marketing and branding campaign to sell one comprehensive package of CompuDyne's security solutions from its individual business units into the Homeland Security marketplace.

Bert Jones, general manager of CompuDyne's Signami DCS business unit, will head up the initiative as well as continuing his current responsibilities. In this new position, Jones will gather the resources from CompuDyne's business units to fulfill requirements of government bids. His mission will be to establish the overarching CompuDyne brand name for comprehensive security solutions. He will report to CompuDyne's Chief Operating Officer Brad Wiggins.

Jones said, "For many years CompuDyne has been helping to make America safe. Its units including Norshield, AirTeq, Tiburon, Quanta, Fiber SenSys, Norment and Signami DCS have well-established brand names. With the growth of homeland security as a major issue here and abroad, it is time to connect the dots so that governments will recognize CompuDyne's resources for a wide range of security projects."

President and CEO Martin Roenigk said, "Although Bert Jones joined CompuDyne only six months ago when we acquired Signami, he has already demonstrated his ability to grow sales and expand market opportunities with the Department of Defense, National Security Agency, FBI, CIA and the Department of State. As a leader, he has grown a business and exhibited the results-oriented style that will help advance CompuDyne to a world-class level."

Before joining CompuDyne, Jones was a co-founder of Signami LLC., Severna Park, Maryland, which developed SignalWorks[R], a pre-eminent Windows-based software system used worldwide for signals collection and analysis. U.S. national intelligence agencies, the Army, Navy, and Air Force and intelligence agencies of numerous foreign governments use Signami hardware and software.

COO Wiggins said, "Bert is the ideal person to exploit the untapped synergy among CompuDyne's products, services and security integration capabilities. He will lead the effort to convert opportunities in border security and the protection of office complexes to fuel our growth in these markets."

Wiggins reported that he has received enthusiastic support from team members all over the globe, asking how they can engage in this exciting new initiative. CompuDyne, he explained, is establishing the organizational framework for multi-functional and mission focused teams to deliver world-class comprehensive security solutions.

About CompuDyne Corporation

CompuDyne Corporation's business units currently market its products and services to municipal, state and federal government agencies as well as the U.S. defense forces and to numerous foreign governments. These products and services cover a wide range of security needs from attack resistant doors and windows, pop-up bollards and barriers, computer-aided dispatch systems, surveillance, detection and thermal imaging systems, high-tech perimeter detection, fencing, prison locks and jail cells.

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.