CompuDyne to Be Key Supplier for U.S. Air Force IBDSS Program; Fiber SenSys Subsidiary is Largest Fiber Optic Sensor Manufacturer for Security Applications.

Business Editors/High-Tech Writers

HANOVER, Md.--(BUSINESS WIRE)--Dec. 22, 2003

CompuDyne Corp. (Nasdaq:CDCY) an industry leader in sophisticated security products, integration and technology for the public security markets, today announced that its fiber optic security systems subsidiary, Fiber SenSys, will supply perimeter security systems for the U.S. Air Force's Integrated Base Defense Security System (IBDSS). Encompassing a total of 108 Air Force bases, this program to upgrade overall security capability, represents a significant opportunity for the company. Deployment of the Fiber Defender system on one of the first bases to be upgraded is scheduled for the first quarter of 2004.

Selection as a preferred solution for this important program builds on the success of the company's Fiber Defender series of intrusion detection products in the Air Force's Tactical Automated Sensor System (TASS) program. TASS, a rapidly deployable perimeter intrusion detection system, protects critical forward installations and troop deployments in high-threat environments. The powerful Fiber Defender product line, including the only fiber optic based perimeter detection systems approved for Department of Defense Priority Level-One facilities, was an obvious choice for the TASS program. "With effectiveness, reliability and ease of use validated in system deployments throughout the Middle East, Southwest Asia and Afghanistan, the Fiber Defender was also a natural choice for the IBDSS program," states Mark Thomas, Fiber SenSys' Sales Manager. Fiber SenSys has established solid relationships with the largest integrators who have won major IBDSS contracts.

Fiber SenSys is an industry expert in optical fiber intrusion detection technology. Fiber SenSys has broadened its reach to multiple market segments with its fiber optic intrusion detection sensors, network security equipment, copper-based sensors, microwave sensors, and intrusion detection software. Installations include nuclear facilities, space center launch pads, U.S. Embassies, power distribution facilities, and military installations throughout the world.

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.