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IZZI News Integrated Security Systems, Inc. Announces First Quarter Results for Fiscal 2007

IRVING, Texas--(BUSINESS WIRE)--Integrated Security Systems, Inc. (OTCBB:IZZI) today announced improved results for the first quarter of fiscal 2007. Overall, sales for the security products manufacturer were up for the quarter year-over-year by over 20%. Much of the difference was attributable to significant increases in the road and bridge segment of the business combined with growth in the Intelli-Site software division.

Gross margin for the company also saw significant improvement from 27% for first quarter 2006 to 36% for the same period in fiscal 2007. Much of the margin improvement is a direct result of restructuring of the B&B ARMR division which began in mid-2005 and involved the closure of the company’s manufacturing operations in Norwood, Louisiana. Performance was further enhanced by an operating expense decrease of 36% from the prior year. This improvement in overhead expense comes as a direct result of the restructuring. Operating losses for the company were cut by nearly 80% over the prior year first quarter.

“The restructuring of the company is clearly taking hold,” notes ISSI President and CEO Jay Foersterling. “We’ve made sweeping changes to the business to improve profitability, and it is obvious that those initiatives are succeeding.”

In summarizing the improvement made in the business over the last twelve months, Foersterling believes that the company is well positioned for future growth and profitability. “Our initial focus was on reducing costs while improving product quality and customer service,” states Foersterling. “Now that we have made significant strides in those areas, our focus will be on driving top line growth.” Company management feels that the market dynamics in the core security and anti-terrorist barrier business have experienced significant change. According to Foersterling, “The security barrier business of a few years ago has matured. In the past, the emphasis was on installing anything that would stop a vehicle, regardless of how it looks or fits into the surrounding environment. Now, however, the focus has increasingly moved toward a combination of aesthetics, quality and value. These are areas in which we excel.

“While the Federal government still is a significant customer, we’re seeing improved opportunities in the state and local governmental sectors as well as in the industrial and commercial base, both domestically and abroad,” says Foersterling. “These are markets highly oriented toward product performance and value; our competitive strengths.”

About ISSI

Headquartered in Irving, Texas, ISSI is a technology company that provides products and services for homeland security needs. ISSI also designs, develops and markets safety equipment and security software to the commercial, industrial and governmental marketplaces. ISSI’s Intelli-Site® provides users with a software solution that integrates existing subsystems from multiple vendors without incurring the additional costs associated with upgrades or replacement. Intelli-Site® features a user-defined graphics interface that controls various security devices within one or multiple facilities. ISSI is a leading provider of anti-terrorist barriers, traffic control and safety systems within the road and bridge and perimeter security gate industries. ISSI designs, manufactures and distributes warning gates, lane changers, airport and navigational lighting and perimeter security gates and operators. ISSI conducts its design, development, manufacturing and distribution activities through three wholly owned subsidiaries: B&B ARMR, Intelli-Site, Inc. and DoorTek Corporation. For more information, please visit www.integratedsecurity.com, www.bb-armr.com, www.bbroadway.com, www.intelli-site.com or www.doortek.com.

This information contains certain forward-looking statements. It is important to note that ISSI's actual results could differ materially from those projected by such forward-looking statements. Important factors that could cause actual results to differ materially from those projected in the forward-looking statements include, but are not limited to, the following: operations may not improve as projected, new products may not be accepted by the marketplace as anticipated, or new products may take longer to develop than anticipated.