Mace Security to Replace Convertible Debt with Less Costly Stand-by Financing

Repurchase Retires Potential Issuance of 7.3MM Mace Shares

Mace Security International, Inc. is pleased to announce that it and Merlin Partners, the holder of its 6% Convertible Debenture (due 3/31/16 and currently convertible at $0.192 per share), have agreed on a repurchase of the debenture. This purchase price is at a significant discount to the Debenture’s current conversion value, while at a premium to the debt’s face value. The elimination of the debenture will result in Mace® saving interest costs over the next 15 months. The repurchase also eliminates the potential issuance of 7.3 million Mace shares at an effective cost of $0.315 per share, a substantial discount to Mace’s current market price.

To retire the debt, Mace will utilize a portion of its current excess cash. However, in order to insure that Mace® still has adequate capital and financial flexibility to respond to new product and potential acquisition opportunities that may arise, the Company has obtained commitments from a group of private investors, including some members of Mace’s Board of Directors. These commitments are for standby financing by way of a put arrangement on approximately $2mil of convertible notes on terms more favorable than the current debenture. This arrangement gives Mace® the right to financing if and when Mace’s Board deems it advantageous for the company to borrow under terms of the new notes, which are subject to finalization in January 2015. The put will have a term of two years with Mace® paying a commitment fee of 2.5% annually, enabling cost savings until Mace® exercises the put.

About Mace Security International, Inc.

(OTCPINK: MACE) Mace® Brand Means Security

Mace Security International, Inc., located in Cleveland, Ohio, is a diversified manufacturer and provider of personal defense and security products to consumer and business market segments under the world renowned Mace® Brand.

Mace® Brand directly distributes and supports its branded products and services through strategically targeted customer channels that include mass market retailers, wholesale distributors, independent dealers, e-commerce marketers, and installation service providers.

• Personal Defense Products: Mace® Brand is the original trusted brand of pepper spray products for self-defense against attacks by people and animals. Mace® Brand has over 40 years experience developing aerosol defense spray dispensing technologies for both the consumer and law enforcement markets around the world.
• Personal & Home Protection Products: Mace® Brand produces portable safety solutions for every personal and home protection need. We design and manufacture products, which provide peace of mind for our consumers.
• Electronic Security & Surveillance Products: Mace® Brand has an entire line of high quality security cameras, digital video recorders, observation monitors and installation accessories for CCTV and IP network-based video surveillance, as well as wireless alarm security systems for local and remote monitoring. We design and manufacture surveillance equipment for every need, with both analog to high definition solutions.
• Personal Security & Safety Wearables: Mace Wear™ is a family of products that features innovative wearable devices related to safety, security and overall personal well-being and is supported by strategic partnerships between Mace Security International, Inc., and innovative technology companies.
• Security Monitoring Services: Mace® Brand partners with Security Partners which owns three UL/ETL/CSAA Five Star listed central monitoring stations throughout the USA providing full-service security & life-safety alarm monitoring to the wholesale security trade.

Mace Security International, Inc.John J. McCann, President and Chief Executive Officer, 440-424-5322Email: [e-mail]