[December 11, 2012]

Mace Security International, Inc. Reports Financial Results for the Three and Nine Months Ended September 30, 2012

Mace Security International, Inc. (OTC PINK: MACE) today announced financial results for the three and nine months ended September 30, 2012.

"Mace saw a 30⁺% increase in revenues from personal defense and law enforcement operations," said John J. McCann, CEO and President. "We also experienced 10⁺% sales growth in our wholesale security monitoring operation which now serves more than 75,000 customers."

To be better positioned for profitability in 2013, the firm also undertook a series of long-term cost cutting initiatives that will continue through the 4^th quarter and into 2013. Specifically, the company experienced a one-time charge of ($500,000) in discontinued operations related to its car wash operations and approximately ($370,000) toward one-time severance, legal and moving expenses necessary to transform Mace's future footprint and structure.

"To become the nation's recognized leader in security, safety and protection, Mace is reallocating resources to products, marketing and sales," McCann explained. "Over the next couple months we expect to announce new product initiatives, licensing partnerships and marketing campaigns that will enhance the value of the Mace brand."

2012 Third Quarter and Current Highlights

• Relocated corporate headquarters from Horsham, PA to Solon, OH, resulting in annual savings of at least $400,000. (October)
• Moved distribution of electronic surveillance equipment from Texas to existing Vermont location; saving $100,000 in annual facility and personnel costs. (August)
• Merged Mace Personal Defense, Inc. (personal defense and law enforcement aerosol) and Mace Security Products, Inc. (electronic surveillance equipment) into one entity called Mace Personal Defense & Security, Inc. (November)
• Effective with the Corporate relocation, Carl R. Smith was hired as Senior VP of Finance and appointed Treasurer and Corporate Secretary by the Board of Directors. He replaced Gregory M. Krzemien, CFO, Treasurer, and Corporate Secretary. Mr. Smith was the Chief Financial Officer, Treasurer, and Secretary of Saeco USA, Inc., a privately owned company that distributes and markets coffee brewing appliances. Mr. Smith also served as VP of Operations for Saeco and held accounting positions with Sifco Industries and Mr. Coffee. (November)
• Effective with the Corporate relocation, Eric Lewis was hired as Corporate Controller; he replaced Steve R. Rolle. Mr. Lewis was the Internal Audit Manager for LKQ Corporation, a remanufacturer, retailer, and distributor of aftermarket auto and truck parts. Mr. Lewis also served as Vice-President, Treasurer, and Controller for Europower, Inc. a distributor of hydraulic hoses and fittings. (November)
• Centralized storage of files and records for additional cost savings. (November)

Financial Results, Three Months Ended September 30, 2012 and 2011

Revenues were approximately $3.4 million and $3.5 million for the three months ended September 30, 2012 and 2011, respectively.

Overall revenues within the security segment decreased $128,000, or 3.6%, in 2012 compared to 2011. This decrease is mainly attributed to a $568,000, or 53.7%, decrease in sales from electronic surveillance equipment operations offset by a $429,000, or 30.8%, increase in personal defense and law enforcement operations, and a slight increase of $10,000 or 0.9% in wholesale security monitoring operation.

The decrease in surveillance equipment revenues is attributed to competition from Asian manufacturers, loss of a key customer, and the sale of IVS. Personal defense and law enforcement operations saw significant increased sales through consumer and international channels and a slight increase in the sporting goods channel. Revenues increased marginally in the wholesale security monitoring division.

Loss from continuing operations for the third quarter of 2012 was approximately $(700,000), or $(0.01) per share, compared to a loss from continuing operations of $(1.9) million, or $(0.04) per share, in the third quarter of 2011. The improvement is attributed to decreases in selling, general and administration ("SG&A") expenses of $891,000, or 32%, and an increase in gross profit of $251,000, or approximately 23%.

Discontinued operations are comprised of the Company's car wash operations. The results of these operations are shown as discontinued operations for financial reporting purposes. These operations generated a loss of approximately $(504,000), or $(0.01) per share, and $(262,000), or $(0.01) per share, for the three months ended September 30, 2012 and 2011 respectfully. The $(504,000) loss in the third quarter of 2012, included expenses associated with a Lease Assignment and Release Agreement on one of the remaining car wash and lube facilities; and accrued expenses to further monitor and test two car wash locations.

Net loss for the three months ended September 30, 2012 was approximately $(1.2) million, or $(0.02) per share, compared to a net loss of approximately $(2.1) million, or $(0.05) per share, for the three months ended September 30, 2011. Weighted average shares for computing loss per share for the three months ending September 30, 2012 and 2011 were 58,946,441 and 43,571,698 respectively.

Financial Results, Nine Months Ended September 30, 2012 and 2011

Revenues were approximately $9.8 million and $10.6 million for the nine months ended September 30, 2012 and 2011, respectively.

Overall revenues, within the security segment, decreased $797,000 or 7.5%, in 2012 compared to 2011. This decrease is mainly attributed to a $2.3 million, or 57%, decrease in sales from electronic surveillance equipment operations offset by a $1.2 million, or 32%, increase in personal defense and law enforcement aerosol operation, and an increase of $340,000, or 12%, in wholesale security monitoring operation, which includes the acquisition of a monitoring center TCCI, on March 31, 2011.

Loss from continuing operations for the nine months ended September 30, 2012 was approximately $(1.9) million, or $(0.03) per share, compared to a loss from continuing operations of $(4.1) million, or $(0.17) per share, in the nine months ended September 30, 2011. The improvement is attributed to decreases in selling, general and administration ("SG&A") expenses of $1.8 million, or 26%, and an increase in gross profit of $189,000, or approximately 5%.

Discontinued operations are comprised of the Company's car wash operations. The results for these operations are shown as discontinued operations for financial reporting purposes. These operations generated a loss of approximately $(576,000), or $(0.03) per share, for the nine months ended September 30, 2012 and a loss of $(296,000), or $(0.17) per share for the nine months ended September 30, 2011. Current year to date loss includes a cash payment of $275,000 and the transfer of certain inventories and equipment having an approximate book value of $70,000 as consideration to the landlord for the early release of the contractual lease agreement.

Net loss for the nine months ended September 30, 2012 was approximately $(2.5) million, or $(0.03) per share, compared to a net loss of approximately $(4.4) million, or $(0.17) per share, for the nine months ended September 30, 2011. Weighted average shares for computing loss per share for the nine months ending September 30, 2012 and 2011 were 58,946,441 and 25,116,345 respectively.

The Company's net book value was $15.1 million, or $0.26, at September 30, 2012. Mace had $18.5 million in total assets, including $5.9 million of cash and short-term investments at September 30, 2012.

Conference Call
Mace will conduct a conference call on Wednesday, December 12, 2012 at 11 a.m. EST, 8 a.m. PST. The participant conference call number is (877) 719-8065, conference ID: 80882238. A digital recording of the teleconference can be accessed by calling (855) 859-2056 and entering conference ID: 80882238. The recording will available beginning two hours following the conclusion of the teleconference until January 12, 2013.

About Mace
Mace Security International, Inc. (OTC PINK: MACE) is a manufacturer and provider of personal defense, safety, and electronic security products to consumer and business market segments under the highly recognized Mace® brand. Mace also owns and operates a UL/ETL listed central station providing remote monitoring services to the wholesale security trade. For more information, go to www.mace.com or write to Mace Security International, Inc., 29100 Aurora Road, Suite 100, Bentley Park, Solon, Ohio 44139.

Certain statements and information included in this press release constitute "forward-looking statements" within the meaning of the Federal Private Securities Litigation Reform Act of 1995. When used in this press release, the words or phrases "will likely result," "are expected to," "will continue," "is anticipated," "estimate," "projected," "intend to" or similar expressions are intended to identify "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. Such statements are subject to certain risks, known and unknown, and uncertainties, including but not limited to economic conditions, dependence on management, our ability to compete with competitors, dilution to shareholders, and limited capital resources. A discussion of factors that could materially adversely affect the Company's financial performance and cause actual results for future periods to differ materially from the statements expressed within this press release, and management's opinions, projections, forecasts, estimates and expectations are contained under the heading "Risk Factors" in Mace's SEC (News - Alert) filings, including its registration statements and its periodic reports on Form 10-K and Form 10-Q. This press release should also be read in conjunction with the financial statements and notes contained in Mace's annual reports on Form 10-K, quarterly reports on Form 10-Q and current reports on Form 8-K.

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