Mace Rejects Kelly Capital’s $3.00 Indication of Interest to Buy Company

MOUNT LAUREL, N.J.--Mace Security International, Inc. (“Mace”) , a manufacturer of electronic surveillance and personal defense products and an owner and operator of car and truck wash facilities, previously announced that Kelly Capital contacted Mace and indicated that Kelly Capital was interested in discussing a purchase of the outstanding stock of Mace for $3.00 per share. Mace’s Board of Directors has reviewed this indication of interest and has decided to reject it. Mace’s Board of Directors also decided to have a discussion with Kelly Capital regarding the possibility of Kelly Capital paying more than $3.00 per share. Kelly Capital has signed a confidentiality agreement with Mace, and is currently conducting due diligence to determine whether it would be willing to offer more than $3.00 per share.

Mace’s net book value as of September 30, 2006 was $3.78 per share. Mace believes that its value is in excess of its book value. Mace’s internally prepared projections reflect that if Mace is successful in selling its remaining car washes for the prices it has projected, the Company will have close to $3.00 per share in cash, no debt and a security business with approximately $23.5 million in annual sales. After the sale of the car washes are completed, Mace believes that it will be in an ideal position to grow its security business (or other opportunities that might present itself) because of its cash position and its potential to raise additional capital. The Company’s security business consists of the famous Mace® brand pepper spray, electronic surveillance products and other security related products.

Mace Security International, Inc. is a manufacturer of electronic surveillance and personal defense products, and an owner and operator of car and truck wash facilities. Information about Mace and becoming a Mace Authorized Dealer is available at www.mace.com. The Company’s consumer e-commerce web site is www.macecatalog.com.

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, dilution to shareholders, limited capital resources, the effects of weather on the demand for car care services, the effects of rapid growth on Mace and the ability of management to effectively respond to that growth, our ability to achieve operating synergies, our ability to compete against established competitors, regulatory matters, the effects of competition, and our ability to obtain additional financing. Such factors could materially adversely affect Mace’s financial performance and could cause Mace’s actual results for future periods to differ materially from any opinions or statements expressed within this press release. Additional discussion of factors that could cause actual results to differ materially from management's projections, forecasts, estimates and expectations are contained under the heading “Risk Factors” in Mace’s SEC filings, including its registration statements and its periodic reports on Form 10-K and Form 10-Q. This press release should be read in conjunction with the financial statements and notes contained in Mace’s annual reports on Form 10-K and quarterly reports on Form 10-Q.