CompuDyne Announces $25.4 Million Award

  
    
  
  
    
      CompuDyne Corporation (NASDAQ:CDCY), an industry leader in sophisticated 
      security products, integration, and technology for the public security 
      markets, announced today that its Integrated Electronics Division, dba 
      Quanta Systems Corporation (“Quanta”), 
      has been awarded a $25.4 million contract to provide security services 
      to the Bureau of Engraving & Printing (“BEP”). 
      BEP is the division of the Department of the Treasury that designs, 
      engraves, and prints U.S. currency, some postage stamps, and other U.S. 
      security documents.
    
    
      Although Quanta is about to enter the second year of this contract, BEP 
      did not announce the award until last week because of a lengthy 
      confirmation process.
    
    
      Under this contract, Quanta provides 24/7 supervisory, operating, and 
      monitoring staff to accomplish security systems installations, 
      operation, maintenance, and monitoring requirements at BEP’s 
      Washington Currency Production Facility.
    
    
      The contract covers a base period of twelve months with four 
      twelve-month options, for a total contract performance period of 60 
      months. Depending on how BEP exercises certain contract line items, 
      there is between $18 million and $20 million in contract value remaining.
    
    
      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.