CompuDyne Announces $4.7 Million Award; Major Security Integration Effort for U.S. Military; Effort is a Federal Security Systems Segment Specialty

Business Wire, Oct 4, 2004

ANNAPOLIS, Md. -- CompuDyne Corp. (Nasdaq:CDCY) an industry leader in sophisticated security products, integration and technology for the public security markets, today announced a $4.7 million award for a major security integration project for the U.S. Military.

The Federal Security Systems segment of CompuDyne received a $4.7 million award to provide a large-scale security systems integration project for the U.S. Military at an undisclosed location. The contract effort will involve the consolidation of the operation, management, monitoring, and emergency dispatch functions for:

--911 Emergency Services (Fire, Rescue, and Police)

--Records Management Systems

--Radio Frequency Communications

--Intrusion Detection Systems

--Access Control Systems

--Video Surveillance Systems

--User Specific Systems

This contract effort will centralize and integrate these multiple services for a large number of different facilities (using disparate, previously installed systems) at a variety of geographical locations. With redundant back-ups, this contract effort will maximize the utility and efficiency of all security/fire/rescue resources, particularly manpower, and also create a quality-assured security/fire/rescue environment wherein centralized watch commanders will be able to ascertain, at any moment in time, the operating status of each individual facility's electronic systems, all first responder resources, and the emergency communications network.

The installation incorporates software from CompuDyne's Public Safety & Justice group.

The Federal Security Systems segment, under the Quanta Systems business name, has developed a strong reputation in recent years as a premier supplier of large scale, government standard, security integration systems.

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.