CompuDyne is Protecting America's Dams; Company's Security Products Find Growing Acceptance.

Business Editors

HANOVER, Md.--(BUSINESS WIRE)--March 15, 2004

CompuDyne Corp. (Nasdaq: CDCY) an industry leader in sophisticated security products, integration and technology for the public security markets, today reported that it has received orders for over $600 thousand for security products to protect some of America's critically vital dams.

The company's Attack Protection business received orders for blast and attack resistant windows and doors to protect access points at a number of dams. These orders, for nine different projects in six states, are rated to high U.S. State Department standards. The projects are part of a larger program administered by the Corp of Engineers for infrastructure and physical security improvements at the nation's waterways.

Attack Protection has also received orders for its Fiber SenSys fiber optic perimeter sensor system for installation at critical dam sites.

The United States has 75,000 dams nationwide. According to FEMA Director Joe Allbaugh "There are approximately 10,000 dams in the U.S. whose failure, from any cause, including a terrorist attack, could result in loss of life, significant property damage, disruption of critical facilities, and environmental damage."

CompuDyne manufactures a complete line of security products and services designed to protect our country's most sensitive infrastructure. The Company expects this critical program by the Corps of Engineers to result in significant additional orders over the coming year.

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.