Integrated Security Systems, Inc. Reports Second Quarter 2007 Financial Results.

IRVING, Texas -- Integrated Security Systems, Inc. (OTCBB:IZZI) today announced results for the fiscal year second quarter ended December 31, 2006 (see attached tables). Revenue for the second quarter declined approximately 18% compared to second quarter fiscal 2006. For the first six months, however, sales year over year are stable, showing a decrease of less than 1%. "We feel that the long sales cycle nature of our business, combined with anemic order flow through much of 2005 and into 2006 served to suppress our results thus far in 2007", stated Jay Foersterling, ISSI President and CEO, "however, that weakness is now largely through the cycle and we are starting to see improvements based on business development efforts begun in early 2006, which are now turning into orders."

For the quarter, gross margin for the company saw significant improvement from 26% for second quarter 2006 to 37% for the same period in fiscal 2007. Overall, the first six months of operations show an improvement in gross margin from 26% in fiscal 2006 to 36% in fiscal 2007. The gross margin improvement is primarily due to restructuring initiatives in the B&B ARMR division, including significant plant closure costs incurred in the first six months of fiscal 2006, which have resulted in greatly reduced manufacturing costs. Performance was further enhanced by operating expense decreases from the prior year. In the second quarter, operating losses declined 36% over the prior year. For the first six months, operating losses have been reduced by 67% year-over-year. Excluding one-time restructuring costs from fiscal 2006, operating losses still declined by 51% for the first six months of fiscal 2007 versus prior year.

"Over the past 12 months, we've made sweeping changes to the business to improve profitability," notes Foersterling, "the clear focus now is on building the top line to take advantage of the new business model we have created."

Company management feels that the market dynamics in the core security and anti-terrorist barrier business is evolving. According to Foersterling, "A portion of the business has moved from the public to the private sector as critical infrastructure businesses look at enhancing their security profile, often working in close cooperation with governmental groups. Unlike many in our industry, we have always been attuned to the needs of the private sector in addition to the governmental customer, which positions us well for the future. The Federal government will remain a significant customer," continued Foersterling, "but 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."

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[R] 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[R] 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 IZZI'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.

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