[8/20/97 Restatement]


                        DETECTION SYSTEMS, INC.
                       DEFERRED STOCK BONUS PLAN

1.   Purpose

     Detection Systems, Inc. (the "Company") has adopted this Deferred
Stock Bonus Plan (the "Plan") for the benefit of its key personnel who
wish to defer the receipt of stock bonuses which they may be entitled
to receive from the Company.  The purposes of the Plan are to assist
key personnel with their individual tax and retirement income planning
and to permit the Company to remain competitive in attracting,
retaining, motivating and rewarding personnel who can directly
influence the Company's operating results.  The Plan was originally
adopted as of January 1, 1989.  This restatement is effective as of
August 20, 1997.

2.   Eligibility

     All key personnel selected by the Committee established under
Section 9 shall be eligible to participate in this Plan.

3.   Contributions

     a.   Company Contributions

               The Company may contribute to a participant's account
          any amount of Company Stock, at any time and for any reason
          as the Company in its sole discretion may determine.  The
          Company has no obligation to make such contributions to any
          participant's account and contributions need not be the same
          for all participants.

     b.   Participant Deferrals

                    (1)  Amount of Deferral.  In addition to Company
               contributions, a participant may elect to defer receipt
               of up to 100 percent of any stock bonus otherwise
               payable to the participant by the Company during a
               calendar year.

                    (2)  Time for Electing Deferral.  An election to
               commence a deferral may be made at any time in
               accordance with the procedures set forth in subsection
               (3) below, provided that any election to defer a stock
               bonus must be made prior to the time that such stock
               bonus will be earned by the participant. Any election
               so made shall remain in effect until the participant
               elects in writing to change his or her election.

                    (3)  Manner of Electing Deferral.  A participant
               shall elect a deferral by giving written notice to the
               Committee in a form prescribed by the Committee.  The
               notice shall include (1) the amount to be deferred; (2)
               the period with respect to which the deferral relates;
               (3) an election of a lump sum payment or the number of
               monthly installments (not to exceed 120) for the
               payment of the deferred amounts; and (4) the date
               benefit payments are to be made or to commence.  A
               participant may designate any date for the commencement
               of benefit payments but in the event the participant
               retires or otherwise terminates employment, benefit
               payments shall commence within 60 days of retirement or
               termination notwithstanding any later date specified in
               the participant's election form.  In addition, if any
               scheduled payment from this Plan during a taxable year
               of the Company would, in combination with other
               compensatory payments to the participant during such
               year, result in the participant's compensation
               exceeding the $1 million cap under Code Section 162(m),
               the Company in its sole discretion may defer benefit
               payments to the first subsequent year when the
               participant's compensation will not exceed the $1
               million cap.

4.   Participant Accounts

     For each participant there shall be established both a
Participant Interest Account and a Participant Stock Account
(collectively referred to as the Participant Account).  Each
Participant Interest Account shall be credited with the fair market
value, determined as of the date of the deferral, of the stock bonus
deferred on behalf of a participant plus an assumed annual interest on
such amounts at a rate designated by the Committee from time to time
as the benchmark assumed interest rate.  This assumed interest shall
be compounded annually and treated as earned from the date of
crediting to the date of withdrawal.

     The Participant Stock Account shall be credited at the end of
each month with the number of shares of Company Common Stock whose
payment is deferred plus any hypothetical dividends payable on the
Company Common Stock previously credited to the Participant Stock
Account.  The value of each Participant Interest and Participant Stock
Account shall be adjusted no less frequently than monthly to reflect
contributions to the Account, payments from the Account as hereinafter
provided, and assumed interest on the Interest Account or additional
stock purchases from hypothetical dividends on the Stock Account.  The
Stock Account shall also be adjusted as of the end of the Company's
fiscal year to reflect gains (or losses) in the fair market value of
Company Common Stock.  For purposes of this Plan, the fair market
value of the Company's Common Stock shall equal the Stock's average
share value during the fiscal year preceding the date on which the
valuation is performed.  The Committee has the discretion to determine
the precise method for calculating the average share value.

     All amounts credited to Participant Accounts shall be fully
vested at all times.  Except for the possible claims of the Company's
general creditors, they shall not be subject to forfeiture on account
of any action by a participant or by the Company, including
termination of employment.

     The maintenance of individual Participant Accounts is for
bookkeeping purposes only.  The Company is not obligated to acquire or
set aside any particular assets for the discharge of its obligations,
nor is any participant to have any property rights in any particular
assets held by the Company, whether or not held for the purpose of
funding the Company's obligations hereunder.

5.   Payment of Deferred Amounts

     No withdrawal may be made from a Participant Account except as
provided in this section 5.  Payments from an Account shall normally
commence within 60 days following the earlier of (1) the benefit
commencement date contained in the participant's initial deferral
notice or (2) the participant's retirement or other termination of
employment.  At the election of a participant who could be subject to
suit under section 16(b) of the Securities Exchange Act of 1934,
payment can be delayed for up to six months and a day following
termination of employment.  In the case of financial hardship, the
Committee, in its sole discretion, may distribute all or a portion of
an Account before the normal benefit commencement date determined
above but the amount of the distribution shall not exceed the amount
needed to relieve the financial hardship.  In the case of a potential
violation of the $1 million cap on compensation under Code Section
162(m), the Company may defer payments to a later year as authorized
in section 3.  Any payments deferred for Section 162(m) purposes shall
be paid as soon as payment would no longer constitute a violation of
the Code Section 162(m) compensation cap.  Such payments shall be made
in a manner as consistent as possible with the participant's original
deferral election.  For example, if installment payments were elected,
the originally scheduled installment payments shall be made on
schedule for a year even if the participant is paid a lump sum in that
same year for the deferred payments.

     At any time prior to his benefit commencement date, the
participant shall make a single, irrevocable election with the
Committee to receive his benefits from either his Participant Interest
Account or his Participant Stock Account.  If no such election is made
or in the event of the participant's death, payment shall be made from
whichever account has the higher value, measured at the time of the
benefit commencement date.  Payments from an Interest Account shall be
made only in cash and payments from a Stock Account shall be made only
in stock, provided that any fractional shares from a Stock Account
shall be paid in cash.

     The number of shares of Company Common Stock that shall be
available for stock payments under this Plan shall be limited to a
maximum of 10% of the total shares outstanding.  Such shares may be
authorized and unissued shares or may be treasury shares.  In the
event of any change in the Common Stock of the Company by reason of
any stock dividend, recapitalization, reorganization, merger,
consolidation, split-up, combination, or exchange of shares, or rights
offering to purchase Common Stock at a price substantially below fair
market value, or of any similar change affecting the Common Stock, the
number and kind of shares which thereafter are available for stock
payments under the Plan shall be appropriately adjusted consistent
with such change in such manner as the Committee may deem equitable to
prevent substantial dilution or enlargement of the rights granted to,
or available for, participants in the Plan.

     All payments from a Participant Account shall be made in the form
of either a lump sum payment or monthly installments over a period of
years not to exceed ten as elected by the participant.  This election
shall be made on the participant's deferral notice, provided that the
participant may change this election, by written notice to the
Committee at any time up to 36 months prior to the actual benefit
commencement date.  Any purported change of an earlier election that
is made within the 36 month period preceding the actual benefit
commencement date shall not be effective and shall be disregarded by
the Committee.  Where payments are made in monthly installments, the
balance credited to a Participant Account shall be adjusted
periodically for assumed interest or stock purchases as provided in
section 4.

     In the event of a participant's death before the participant has
received all of the deferred payments to which the participant is
entitled hereunder, the remaining number of installments which would
have been paid to the participant shall be paid to the participant's
estate in the same manner that the participant would have received
them.

     Notwithstanding a participant's election of installment payments,
the Committee, in its sole discretion, shall have a right to
accelerate any such payments or to make payment of the balance in a
Participant Account in a lump sum.

6.   Participant's Rights Unsecured

     The right of any participant or, if applicable, the participant's
estate, to receive benefits under the provisions of this Plan shall be
an unsecured claim against the general assets of the Company.  Any
amounts held in a Participant Account are a part of the Company's
general assets and shall be reachable by the general creditors of the
Company.

7.   Statement of Account

     Statements will be sent to participants no less frequently than
annually setting forth the value of their Participant Accounts.

8.   Transferability

     The rights of a participant under this Plan shall not be
transferable other than by will or the laws of descent and
distribution and are excercisable during the participant's lifetime
only by him or by his guardian or legal representative.

9.   Plan Administrator

     The administrator of this Plan shall be a committee of the Board
of Directors of the Company as from time to time designated by the
Board.  The Committee's members shall be non-employees of the Company.
The Committee shall have the authority to adopt rules and regulations
for carrying out the Plan and to interpret, construe and implement the
provisions of the Plan.

10.  Amendment

     This Plan may at any time or from time to time be amended,
modified or terminated by the Company's Board of Directors.  No
amendment, modification or termination shall, without the consent of a
participant, adversely affect such participant's accruals in his or
her Participant Account.

11.  Governing Law

     This Plan and any participant elections hereunder shall be
interpreted and enforced in accordance with the laws of the State of
New York.

12.  Effective Date

     The effective date of this restated Plan is August 20, 1997.


     IN WITNESS WHEREOF, the Company has caused its duly authorized
officer to execute this Plan document on its behalf this 20th day of
August 1997.


                    DETECTION SYSTEMS, INC.


                    By ___________________________
                       Frank J. Ryan, Vice President