The Gores Group, LLC and Investors Complete Purchase of CompuDyne Corporation

The Gores Group, LLC, and defense industry executive Stuart
Mackiernan announced the completion of the acquisition of CompuDyne
Corporation, a leader in sophisticated security products and
technology for the public security markets. Clearlake Capital Group,
L.P. provided debt and equity financing to the investor group in the
transaction.

On August 6, 2007, affiliates of the investor group entered into
an Agreement and Plan of Merger with CompuDyne. The transaction was
effected by way of a tender offer (which resulted in approximately 92%
of the outstanding shares being tendered) followed by a short-form
merger.

As part of the transaction, Martin Roenigk resigned his position
as President and CEO of CompuDyne and Stuart Mackiernan was named CEO.
Mr. Mackiernan is an industry executive with significant experience in
the defense and government services industry, most recently Corporate
Vice President, Business Development, and President and CEO of L-3
Satellite Networks at L-3 Communications. Previously, Mr. Mackiernan
held senior positions at GE Capital Spacenet Services, General
Dynamics, SAIC, and Unisys.

"CompuDyne is well positioned to expand on its services and
products in key markets of infrastructure protection and homeland
security," said Mr. Mackiernan. "CompuDyne is engaged in all areas of
public safety, from installing blast-proof windows at embassies to
creating software to manage how our courts, prisons and police
departments function. We see a unique opportunity to expand our
business, both in the U.S. and around the world," he added.

Ian Weingarten, Managing Director at The Gores Group, commented,
"The demand for sophisticated security systems offers exciting growth
opportunity on a global basis. As a private company, CompuDyne will be
better able to realize its potential in this important market. We are
looking forward to the opportunity to expand CompuDyne organically as
well as through acquisitions into a larger player in the security
products and technology sector."

Steven Chang, Partner at Clearlake Capital, added, "We believe
that CompuDyne will serve as an excellent platform for capitalizing on
the growth opportunities in the defense and highly-fragmented public
security industries. Clearlake is excited to team with Gores and
Stuart on this important transaction and we look forward to supporting
the growth of CompuDyne's business units."

About CompuDyne

CompuDyne Corporation (NASDAQ:CDCY) is a leading provider of
products and services to the public security market with 2006 revenues
of $147.5 million. CompuDyne operates in four distinct segments in
this marketplace: Institutional Security Systems, Attack Protection,
Integrated Electronics and Public Safety and Justice/Tiburon.
CompuDyne's customers include several divisions of federal, state and
local governmental agencies and corporate clientele. For more
information, please visit www.CompuDyne.com.

About The Gores Group

Founded in 1987, The Gores Group, LLC is a private equity firm
focused on acquiring controlling interests in mature and growing
businesses which can benefit from the firm's operating experience and
flexible capital base. The firm combines the operational expertise and
detailed due diligence capabilities of a strategic buyer with the
seasoned M&A team of a traditional financial buyer. The Gores Group,
LLC has become a leading investor having demonstrated over time a
reliable track record of creating substantial value in its portfolio
companies alongside management. The firm's current private equity fund
has committed equity capital of $1.3 billion. Headquartered in Los
Angeles, California, The Gores Group, LLC maintains offices in
Boulder, Colorado and London. For more information, please visit
www.gores.com.

About Clearlake Capital Group

Clearlake Capital Group is a private investment firm integrating
private equity, leveraged finance, and special situations in both
private and public market opportunities. Clearlake Capital seeks to
partner with world-class management teams to invest in businesses
going through change or expansion with patient long-term capital. The
firm has a flexible mandate to invest across the capital structure in
corporate divestitures, recapitalizations, restructurings, going
private buyouts and growth capital. Clearlake Capital's founding
principals have led over 35 investments totaling more than $3.5
billion of capital in sectors including business services,
communications and media, energy and power, healthcare, manufacturing,
retail/consumer and technology.