Arlington County Contracts with Tiburon for a New Computer Aided Dispatch System

CompuDyne Corporation (NASDAQ: CDCY), an industry leader in sophisticated security products, integration, and technology for the public security markets, announced today that the county of Arlington, Virginia signed a contract with CompuDyne’s public safety and justice unit, Tiburon, Inc. of Pleasanton, CA, to provide a comprehensive upgrade to the county’s Computer Aided Dispatch (CAD) system. Tiburon is an industry-leading provider of automated public safety and justice systems to meet the demanding and complex needs of law enforcement, fire and rescue, corrections, and justice environments. The Arlington County Office of Emergency Management, a client since 1993, contracted with Tiburon for an upgrade to their existing Computer Aided Dispatch system. The County wanted to take advantage of the new hardware technology and enhanced software functionality provided by this comprehensive upgrade. "With more office space than downtown Boston and Los Angeles, Arlington is a dense, urban community with a mix of residential and commercial neighborhoods and, therefore, requires complex emergency response capabilities,” said John Crawford, Emergency Communications Center Commander. "We also have a significant federal presence; when the Pentagon dials 9-1-1, Arlington answers the call.” A committee comprised of county public safety officials have agreed to continue their partnership with Tiburon. "We are confident in the functionality of the Tiburon product and feel positive about using Tiburon upgrades in the future,” continues Crawford. The new system will be installed in the summer of 2007 in a new state-of-the-art Emergency Communications Center (ECC) which will provide 9-1-1, police, fire, and emergency medical dispatch services to Arlington County, plus 9-1-1, fire, and emergency medical dispatch services to the city of Falls Church, Virginia. Once operational in the new center, the county will retrofit the existing ECC as a hot back-up auxiliary ECC. The auxiliary center will be able to operate as a fully independent call-taking and dispatch facility or as an extension of the ECC during a major event, such as the September 11, 2001 attack on the Pentagon. The Tiburon upgrade will network together fully redundant CAD solutions installed in each of the Emergency Communications Centers. Within the last year, the cities of Chesapeake and Virginia Beach, VA and Prince George’s County, MD have also given the company a vote of confidence by contracting with Tiburon to upgrade their existing public safety 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 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.