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.