EXHIBIT 10e
                               
                    DETECTION SYSTEMS, INC.
                  DEFERRED COMPENSATION PLAN
                    Revised January 1, 1997

1.   Purpose

     Detection Systems, Inc. (the "Company") has adopted this
Deferred Compensation Plan (the "Plan") for the benefit of its
officers who wish to defer the receipt of salary or bonuses
which they may be entitled to receive from the Company.  The
purposes of the Plan are to assist the officers with their
individual tax and retirement income planning and to permit the
Company to remain competitive in attracting, retaining,
motivating and rewarding key executives who can directly
influence the Company's operating results.  The Plan was
originally adopted as of August 1, 1986.  This restatement is
effective as of January 1, 1997.

2.   Eligibility

     Any officer of the Company may elect to participate in
this Plan.

3.   Amount of Deferral

     A participant may elect to defer receipt of up to 10
percent of his or her base salary and up to 100 percent of any
bonus otherwise payable to the participant by the Company
during a calendar year.

4.   Time for Electing Deferral

     An election to commence a deferral may be made at any time
in accordance with the procedures set forth in section 5,
provided that any election to defer compensation must be made
prior to the time that such compensation is to 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.

5.   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.

6.   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 amounts
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
that could be purchased at the Common Stock's then fair market
value with the amounts deferred each month plus any
hypothetical dividends payable during such month on the Company
Common Stock previously credited to the Participant Stock
Account.  The value of each Participant Interest and 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 no less frequently than monthly to reflect any
gains (or losses) in the fair market value of Company Common
Stock.

     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.

7.   Payment of Deferred Amounts

     No withdrawal may be made from a Participant Account
except as provided in this section 7.  Payments from an Account
shall normally commence within 60 days following a
participant's retirement or other termination of employment
unless an earlier date had been specified by the participant in
the election form to which the deferred amounts relate.  In the
case of financial hardship, the Committee, in its sole
discretion, may distribute all or a portion of an Account
before termination of employment but the amount of the
distribution shall not exceed the amount needed to relieve the
financial hardship.

     At any time prior to his becoming eligible to commence
receiving benefits, 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.

     An aggregate of 182,250 shares of Company Common Stock
(subject to substitution or adjustment as provided below) shall
be available for stock payments under this Plan.  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 may be optioned and sold under
the Plan and the number and kind of shares subject to option in
outstanding option agreements and the purchase price per share
thereof 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
requested 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 6.

     If installment payments are elected, the first installment
shall equal the value of the Participant Account at such time
multiplied by a fraction, the numerator of which is one and the
denominator of which is the total number of monthly
installments to be made.  All subsequent installments shall
equal the value of the Participant Account as of the last
valuation date preceding the installment which is to be paid
multiplied by a fraction, the numerator of which is one and the
denominator of which is the total number of installments
elected minus the number of installments already paid.

     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.

8.   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.

9.   Statement of Account

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

10.  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.

11.  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.

12.  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.

13.  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.

14.  Effective Date

     The effective date of this restated Plan is January 1,
1997.



                               
                    DETECTION SYSTEMS, INC.
                  DEFERRED COMPENSATION PLAN
                               
                         Election Form

To:  DETECTION SYSTEMS, INC.

     In accordance with the provisions of the Plan, I hereby
elect to defer future salary or bonuses otherwise payable to me
by the Company as follows:

              1.   AMOUNT OF SALARY DEFERRAL (fill in one
              space):

                   ______________ (amount per pay period); or

                   ______________ (percent of salary per pay
              period).

              2.   AMOUNT OF BONUS DEFERRAL (fill in one
              space):

                   ______________ (amount per year); or

                   ______________ (percentage of bonus).

              3.   DATE DEFERRALS ARE TO BE PAID (check one)


                         /  / termination of employment; or

                    /  /      the earlier of ______________
               (fill in date you wish to receive deferrals) or
               termination of employment).

     4.   PAYMENT OF DEFERRED AMOUNTS

          The amounts deferred, plus any assumed earnings
thereon, are to be paid to me as follows (check one):


                         /  /      a lump sum; or


                         /  /      installment payments over
                    ___ years (not in excess of 10).

     In the event of my death before I have received all of the
deferred payments, the payments which would have been paid to
me shall be paid to my estate in the same manner I would have
received them as noted above.

     This election is subject to all of the terms of the
Detection Systems, Inc. Deferred Compensation Plan on file with
the records of the company.

Dated:  ________________ ___________________________________
                              Signature of Employee
               
               Accepted on the  day of ______________, l9___,
               on behalf of Detection Systems, Inc.

               By___________________________________________


Federal Tax Aspects

     The Plan is a non-qualified deferred compensation plan
under the provisions of the Internal Revenue Code.  At the time
a deferral of compensation is made, it is intended that the
participants will not recognize income, for Federal income tax
purposes, on the amounts of salary or bonus they elect to
defer.  In addition, assumed interest and hypothetical
dividends will not be treated as income at the time they are
credited to the participant accounts.

     Participants will recognize ordinary income at the time
the deferred amounts, together with the earnings credited to
these amounts, are actually paid out or made available to the
participants.  The amount of such ordinary income will equal
the amount of cash received plus the fair market value, on the
date of payment, of any shares paid or made available.

     The ultimate sale or exchange of any shares of common
stock received under the Plan will result in either long-term
or short term capital gain, or loss depending on the holding
period.  Under current law, long term capital gains or losses
will result upon the disposition of shares that are held for
more than six months.  A participant's basis in the shares will
be the amount of income he recognizes at the time the shares
were actually paid or made available to the participant.

     The Company is not entitled to deduct the amount of salary
or bonus deferred into the Plan or the assumed interest or
hypothetical dividends credited to an account.  Instead, the
Company is entitled to take a deduction at the time a
participant recognizes income.  The amount of the deduction is
the amount of income that a participant must recognize.

     For Social Security tax (F.I.C.A.) purposes the amounts of
salary or bonus deferred under the Plan are taxable as "wages"
at the time the services are performed.  This will result in
Social Security taxes to a participant and to the Company only
where a participant is otherwise below the Social Security Wage
Base at the time the deferrals are made.

     The Plan is not a tax-qualified plan under Section 401(a)
of the Internal Revenue Code and is not subject to ERISA.  The
Company has not received any ruling from the Internal Revenue
Service concerning the tax consequences of the Plan.