CompuDyne - Public Safety & Justice, Inc. Achieves Prestigious Microsoft Gold Certified Partner Status

Business Wire, June 5, 2006

ANNAPOLIS, Md. -- CompuDyne Corporation (Nasdaq:CDCY), an industry leader in sophisticated security products, integration and technology for the public security markets, announced today that CompuDyne - Public Safety & Justice, Inc. (formerly Tiburon, Inc.) has attained the highest level for partners in the Microsoft Partner Program, Gold Certified Partner status with a competency in ISV/Software Solutions. This achievement places CompuDyne - Public Safety & Justice, Inc. (CompuDyne), an industry-leading provider of automated public safety and justice systems, among an elite group of companies worldwide that have met strict certification and expertise requirements including sales volume, successful implementations, client references and product knowledge.

"Our team has devoted significant amounts of time and resources to achieve Microsoft Gold Certified Partner status," states Dan Crawford, President and CEO of CompuDyne - Public Safety & Justice, Inc. "As a Microsoft Gold Certified Partner, we can better align Microsoft's core technologies with our own core competencies - delivering advanced automated information solutions to public safety and justice agencies."

"Clients are looking for partner companies that can bridge the gap between their business demands and technology capabilities. They need to trust in someone that can act as an expert adviser for their long-term strategic technology plans. Microsoft Gold Certified Partners, which have certified expertise and direct training and support from Microsoft, can build a positive client experience with our technologies," said Allison Watson, vice president of the Worldwide Partner Sales and Marketing Group at Microsoft Corp. "Today, Microsoft recognizes CompuDyne as a new Microsoft Gold Certified Partner for demonstrating its expertise in providing client satisfaction with Microsoft products and technology."

As one of the requirements for attaining Gold Certified Status, CompuDyne - Public Safety & Justice, Inc. had to declare a Microsoft Competency. Microsoft Competencies are designed to help differentiate a partner's capabilities with specific Microsoft technologies to clients looking for a particular type of solution. Each competency has a unique set of requirements and benefits, formulated to accurately represent the specific skills and services that partners bring to the technology industry.

The Microsoft ISV/Software Solutions Competency recognizes the skill and focus partners bring to a particular solution set. Microsoft Gold Certified Partners that have obtained this competency have a successful record of developing and marketing software based on Microsoft technologies.

"Solutions Competencies are an important way for Microsoft to better enable ISVs to meet client needs," said Sanjay Parthasarathy, corporate vice president of the Platform Strategy & Partner Group at Microsoft. "They allow ISVs to keep and win clients with their deep knowledge of solutions-based Microsoft platform technologies. Microsoft has a long history of working closely with ISV partners to help deliver compelling solutions and applications to our mutual clients, and the Solutions Competencies are an important step in continuing to enhance vital relationships with ISVs worldwide."

The Microsoft Partner Program was launched in December 2003 and represents Microsoft's ongoing commitment to the success of partners worldwide. The program offers a single, integrated partnering framework that recognizes partner expertise, rewards the total impact that partners have in the technology marketplace, and delivers more value to help partners' businesses be successful.

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.