Kentucky-Based Center for Rural Development Contracts with CompuDyne-Public Safety & Justice, Inc. for a $1.0 Million Records Management System

CompuDyne Corporation (Nasdaq:CDCY), an industry leaderin sophisticated security products, integration and technology for thepublic security markets, announced today that the Kentucky-basedCenter for Rural Development has signed a $1.0 million contract withCompuDyne - Public Safety & Justice, Inc. (formerly Tiburon, Inc.) toprovide a Records Management System. CompuDyne - Public Safety &Justice, Inc. (CPS&J) is an industry-leading provider of automatedpublic safety and justice systems which meet the demanding and complexneeds of law enforcement, fire & rescue, corrections and justiceenvironments. This comprehensive Records Management System (RMS) willserve more than 100 law enforcement agencies throughout 42 counties inSouthern and Eastern Kentucky.

The Center for Rural Development, headquartered in Somerset,Kentucky, is a non-profit organization dedicated to providinginnovative community development solutions for the citizens of ruralSouthern and Eastern Kentucky. The RMS provided by CPS&J is part of amulti-million Dollar Law Enforcement Technology project initiated byThe Center in 2001 to provide improved communications and advancedtechnologies to local law enforcement agencies.

The new RMS will provide several benefits to local law enforcementagencies. "Our goal is to increase productivity through automation oflabor intensive tasks, enhance investigative efficiency by providing aregional information database and the tools necessary to access theinformation, and improve information sharing allowing local agenciesto collaborate their law enforcement activities," says Rodney Murphy,Director of Public Safety for The Center. "We are proud to haveCompuDyne as our strategic partner in this critically important publicsafety project for our region."

The RMS will consolidate and automate records processing andcriminal investigations for law enforcement agencies. A regionaldatabase will store information related to arrests, citations,contacts, incidents, pawned property and more. This information willbe available on a regional basis to authorized law enforcementofficials to conduct queries to link related incidents andperpetrators, locate stolen property and indicate crime patterns andtrends. Automating and sharing critical information saves precioustime and improves accuracy of law enforcement activities. In additionto helping to solve crimes, the system will allow agencies to managevarious administrative functions such as personnel tracking andscheduling, evidence management, training and certification tracking.

Certain statements made in this press release constitute"forward-looking statements" within the meaning of the PrivateSecurities Litigation Reform Act of 1995, including those statementsconcerning the Company's expectations with respect to future operatingresults and other events. Although the Company believes it has areasonable basis for these forward-looking statements, thesestatements involve risks and uncertainties that cannot be predicted orquantified and consequently, actual results may differ materially fromthose expressed or implied by such forward-looking statements. Factorswhich could cause actual results to differ from expectations include,among others, capital spending patterns of the security market and thedemand for the Company's products, competitive factors and pricingpressures, changes in legislation, regulatory requirements, governmentbudget problems, the Company's ability to secure new contracts, theability to successfully grow the Company by completing acquisitions,the ability to remain in compliance with its bank covenants, delays ingovernment procurement processes, ability to obtain bid, payment andperformance bonds on various of the Company's projects, technologicalchange or difficulties, the ability to refinance debt when it becomesdue, product development risks, commercialization difficulties,adverse results in litigation, the level of product returns, theamount of remedial work needed to be performed, costs of compliancewith Sarbanes-Oxley requirements and the impact of the failure tocomply with such requirements, risks associated with internal controlweaknesses identified in complying with Section 404 of Sarbanes-Oxley,the Company's ability to realize anticipated cost savings, theCompany's ability to simplify its structure and modify its strategicobjectives, and general economic conditions. Risks inherent in theCompany's business and with respect to future uncertainties arefurther described in its other filings with the Securities ExchangeCommission, such as the Company's Form 10-K, Form 10-Q, and Form 8-Kreports.