INTEGRATED SECURITY SYSTEMS, INC. ANNOUNCES OPERATING STATUS AND QUARTERLY FILINGS

Irving, Texas – February 24, 2006 – Integrated Security Systems, Inc. (OTCBB Symbol: IZZI) today announced operating status and quarterly filings. 

The last six months have been critical in the history of Integrated Security Systems, Inc. (“ISSI”). Beginning last July, we began a process of restructuring our largest subsidiary, B&B ARMR, a leading producer of anti-terrorism and perimeter security barriers and systems. This was done in an effort to improve our products and services as well as reduce our cost structure. As part of this restructuring process, we closed our Norwood, Louisiana facility and outsourced significant portions of our production. In addition, we moved the headquarters offices of the business to Carrollton, Texas. While these changes resulted in a decrease in headcount from 70 to fourteen, the new structure allows a greater focus on what our customers consider to be the highest value activities; namely design, engineering and support.

In financial terms, we have begun to realize the fruits of this restructuring. B&B ARMR produced positive operating income in December. During the next twelve months, we expect to see considerable acceleration in both sales and profits for the division. In addition, all indications from the market point to improved sales leading into the future.

We are also seeing major performance improvements in our Intelli-Site subsidiary and B&B Roadway (65% owned joint venture).  Intelli-Site, an innovative leader in the development of integration software for the security industry has seen sales jump 82% from the July-September 2005 period.  Quoting activity for the software is very robust and we expect significant growth to continue into the future.

B&B Roadway is the nation’s leading supplier of gates and navigational lighting for highway bridges and related markets. Partially in response to an increased focus on city evacuation strategies from numerous state governments, sales have increased significantly. We expect this business to continue its record of solid growth and profitability.

Corporate expenses, consisting of interest, legal, accounting and corporate staff plus non-cash costs for warrants and debt issuance amortization remain somewhat high for our current size and offset current contributions from operations.  We expect this to change in our fourth fiscal quarter ending June 30, 2006, as we gain volume and our structure is well positioned to accommodate that growth. 

The restructuring process, including a physical move, changes in accounting systems and personnel changes made it necessary to restate results for the first quarter, which ended in September.  This restatement resulted in a sales decrease of approximately $40,000 and an increase in the net loss allocable to common stockholders of approximately $340,000.  The amended numbers are shown on the attached table.

The 10QSB, with the results for the December quarter, was filed on February 21, 2006, and these results are also presented on the attached table.

The environment for our security and road and bridge product sales has never been better.  We believe the increasing acceptance of our products by the market coupled with our current structure will produce positive net income in our fourth quarter ending June 30, 2006 and forward.  Reaching this point has taken longer and cost more than we anticipated.  We appreciate the patience and loyalty of our shareholders.

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.intelli-site.com, or www.doortek.com.

About B&B ARMR Corporation

B&B ARMR Corporation engineers and manufactures high security crash rated barriers and parking control equipment for commercial and institutional use throughout the world. B&B ARMR offers turnkey installation services for its security and control products and supplies parts and services for vehicle barriers manufactured by other companies. The company’s roots can be traced to 1925, and they assert a high profile customer list that includes the Pentagon, San Diego Naval Station, G.E. Headquarters, Hertz, FDA, FAA Headquarters, Department of State and several foreign embassies. For additional information, please visit www.bb-armr.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.

INTEGRATED SECURITY SYSTEMS, INC.

CONDENSED CONSOLIDATED STATEMENT OF OPERATIONS

($ in thousands, except per share amounts)

(Unaudited)

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