Exhibit 99.1 to Image Sensing Systems, Inc. Form 8-K dated February 22, 2007

Image Sensing Systems Announces Fifth Consecutive Year of Record Financial Results

Saint Paul, Minn., February 22, 2007 — Image Sensing Systems, Inc. (ISS) (NASDAQ: ISNS) announced today that its net income for fiscal year 2006 was $3.1 million or $.83 per share ($.80 per diluted share) versus net income of $2.8 million or $.79 per share ($.73 per diluted share) for 2005. Net income for the fourth quarter of 2006 was $1.2 million or $.30 per share ($.30 per diluted share) versus net income of $689,000 or $.19 per share ($.18 per diluted share) for the comparable period in 2005. The fourth quarter of 2006 marks the nineteenth consecutive quarter of profitability for the company.

For fiscal year 2006, revenue was $13.1 million compared to $11.0 million in fiscal year 2005, an increase of 19%. Royalty income from sales in North America was $10.1 million in 2006 compared to $8.6 million in 2005, while international sales were $3.0 million compared to $2.4 million in 2005. The Company’s North American distributor achieved double-digit sales growth on our products as it has every year since 2001. Additionally, the Company’s Asian subsidiary delivered improved results, more than doubling sales compared to a difficult 2005 year.

For the fourth quarter of 2006, revenue was $4.1 million versus $2.9 million for the comparable period in 2005, an increase of 43%. For the quarter, royalty income from sales in North America was $2.8 million in 2006 compared to $2.1 million in 2005, while international sales were $1.3 million compared to $761,000 in 2005. Revenue in all of the Company’s units increased by more than 25% over the similar quarter in 2005.

Due to making significant investments in its next generation Autoscope product line, the Company’s research and development expense increased in 2006 by $1.1 million over 2005. Also, other income decreased in 2006 versus 2005 due to the $375,000 legal settlement with the Company’s North American distributor. Partially offsetting these expenses, the Company’s

effective income tax rate was 23% in 2006 compared to 35% in 2005 due to the recognition of a number of federal and state tax adjustments and credits.

Jim Murdakes, Chairman and CEO, commented, “We posted solid fourth quarter results across all three markets with our North American distributor Econolite (ECPI) leading the way. Despite the expenses associated with the ECPI settlement and with our accelerated technical effort on Autoscope, we were still able to exceed last year’s results. More importantly, we are now well positioned to introduce a number of enhanced products in the first half of 2007 that we believe leapfrog the competition and which could serve to drive further revenue growth. With the combination of our strong financial results and balance sheet, the newly announced executive team, strategic partners and advanced technology, ISS is ready to continue its leadership in the Intelligent Traffic Systems market.”

Headquartered in St. Paul, Minnesota, Image Sensing Systems, Inc. combines expertise in image processing, hardware and software engineering and communications to develop Autoscope® video detection systems for advanced traffic management and control applications. With equipment supplied for over 50,000 cameras in more than 55 countries, we are a global leader in video detection for management and safety systems for highways, bridges, tunnels and intersections. Autoscope products provide transportation managers the means to reduce roadway congestion, improve safety and security, gain cost efficiencies and assist in roadway planning.

Safe Harbor Statement: Statements made in this release concerning the Company’s or management’s intentions, expectations, or predictions about future results or events are “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. Such statements reflect management’s current expectations or beliefs, and are subject to risks and uncertainties that could cause actual results or events to vary from stated expectations, which variations could be material and adverse. Factors that could produce such a variation include, but are not limited to, the following: the inherent unreliability of earnings, revenue and cash flow predictions due to numerous factors, many of which are beyond the Company’s control; developments in the demand for the Company’s products and services; relationships with the Company’s major customers and suppliers; unanticipated delays, costs and expenses inherent in the development and marketing of new products and services; the impact of governmental laws and regulations; and competitive factors. Our forward-looking statements speak only as of the time made, and we assume no obligation to publicly update any such statements. Additional information concerning these and other factors that could cause actual results and events to differ materially from the Company’s current expectations are contained in the Company’s Form 10-KSB for the year ended December 31, 2005.

	Three Months Ended December 31				Year Ended December 31
	2006		2005		2006		2005
Revenue
Royalty income	$	2,854	$	2,127	$	10,136	$	8,595
International sales		1,271		761		2,980		2,407
		4,125		2,888		13,116		11,002
Cost of revenue
Royalty fee		—		95		220		383
Cost of sales		748		389		1,501		1,042
		748		484		1,721		1,425
Gross profit		3,377		2,404		11,395		9,577
Operating expenses
Selling, marketing and product support		755		678		2,850		2,567
General and administrative		458		329		2,007		1,400
Research and development		1,057		449		2,639		1,516
		2,270		1,456		7,496		5,483
Income from operations		1,107		948		3,899		4,094
Other income		168		80		148		252
Income before income taxes		1,275		1,028		4,047		4,346
Income taxes		115		339		942		1,505
Net income	$	1,160	$	689	$	3,105	$	2,841

Net income per common share
Basic	$	0.30	$	0.19	$	0.83	$	0.79
Diluted	$	0.30	$	0.18	$	0.80	$	0.73

Weighted average shares outstanding
Basic		3,745		3,681		3,725		3,602
Diluted		3,902		3,878		3,891		3,868

	December 31, 2006		December 31, 2005
Assets
Current assets
Cash and cash equivalents	$	11,626	$	9,006
Investments		4,100		2,300
Receivables		2,957		3,514
Inventories		670		312
Prepaid expenses and deferred taxes		319		118
		19,672		15,250
Property and equipment, net		522		329
Goodwill and capitalized software development costs, net		1,050		1,212
	$	21,244	$	16,791
Liabilities and Shareholders’ Equity
Current liabilities
Accounts payable and accrued expenses	$	1,652	$	923
Income taxes payable		231		94
		1,883		1,017
Deferred income taxes		28		52
Shareholders’ equity		19,333		15,722
	$	21,244	$	16,791

	Year Ended December 31
	2006			2005
Operating activities
Net income	$	3,105		$	2,841
Adjustments to reconcile net income to net cash provided by operations
Depreciation and amortization		388			379
Stock option expense and tax benefits		290			445
Changes in operating assets and liabilities		856			(1,255	)
Net cash provided by operating activities		4,639			2,410

Investing activities
Purchase of property and equipment		(419	)		(323	)
Maturities (purchases) of investments, net		(1,800	)		5,000
Net cash provided by (used in) investing activities		(2,219	)		4,677

Financing activity – proceeds from exercise of stock options		200			657

Increase (decrease) in cash and cash equivalents		2,620			7,744
Cash and cash equivalents, beginning of year		9,006			1,262
Cash and cash equivalents, end of year	$	11,626		$	9,006