----

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**UNITED      STATES SECURITIES AND EXCHANGE COMMISSION**

**FORM      10-Q**

**x      QUARTERLY REPORT      PURSUANT TO SECTION 13 OR 15(d) OF**

**THE      SECURITIES EXCHANGE ACT OF 1934**

**Commission      file number **
**001-31747**

**UNIVERSAL      SECURITY INSTRUMENTS, INC.**

|  **Maryland**                                                  |   |  **52-0898545**                           |
|---------------------------------------------------------------------|--------|------------------------------------------------|
|  (State                or other jurisdiction                of |   |   (I.R.S.                Employer    |
|  incorporation                or organization)            |   |   Identification                No.) |

| **7-A                Gwynns Mill                Court**                      |   |                            |
|------------------------------------------------------------------------------|--------|---------------------------------|
| **Owings                Mills,                Maryland**                |   |  **21117**                 |
|  (Address                of principal executive                offices) |   |  (Zip                Code) |

**(410)      363-3000**

** **

** **

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**TABLE      OF CONTENTS**

|                                              |                                                                                                                                                |   | **Page** |
|---------------------------------------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------|--------|----------|
| **Part                I - Financial Information** |                                                                                                                                                |   |
|                                              |                                                                                                                                                |   |     |
| **Item                  1.**                      | Consolidated                  Financial Statements (unaudited):                                                                                     |   |     |
|                                              |                                                                                                                                                |   |     |
|                                              | Consolidated                  Balance Sheets at September 30, 2006 and                  March 31, 2006                                              |   | 3        |
|                                              |                                                                                                                                                |   |     |
|                                              | Consolidated                  Statements of Earnings for the Three Months                  Ended September 30, 2006 and 2005                        |   | 4        |
|                                              |                                                                                                                                                |   |     |
|                                              | Consolidated                  Statements of Earnings for the Six Months                  Ended September 30, 2006 and 2005                          |   | 5        |
|                                              |                                                                                                                                                |   |     |
|                                              | Consolidated                    Statements of Cash Flows for the Six Months Ended September 30,                    2006 and                    2005 |   | 6        |
|                                              |                                                                                                                                                |   |     |
|                                              | Notes                  to Consolidated Financial Statements                                                                                         |   | 7        |
|                                              |                                                                                                                                                |   |     |
| **Item                  2.**                      | Management’s                    Discussion and Analysis of Financial Condition and Results of                    Operations                   |   | 11       |
|                                              |                                                                                                                                                |   |     |
| **Item                  3.**                      | Quantitative                  and Qualitative Disclosure About Market Risk                                                                          |   | 14       |
|                                              |                                                                                                                                                |   |     |
| **Item                  4.**                      | Controls                  and Procedures                                                                                                            |   | 14       |
|                                              |                                                                                                                                                |   |     |
| **Part                  II - Other Information**  |                                                                                                                                                |   |
|                                              |                                                                                                                                                |   |     |
| **Item                  1.**                      | Legal                  Proceedings                                                                                                                  |   | 15       |
|                                              |                                                                                                                                                |   |     |
| **Item                  6.**                      | Exhibits                                                                                                                                            |   | 15       |
|                                              |                                                                                                                                                |   |     |
|                                              | Signatures                                                                                                                                          |   | 16       |

----

**PART      I - FINANCIAL INFORMATION**

**ITEM      1.**

**UNIVERSAL      SECURITY INSTRUMENTS, INC. AND SUBSIDIARIES**

**CONSOLIDATED      BALANCE SHEETS**

**(Unaudited)**

|                                                                                                                                                                                                                                                                         |   | September                30, 2006 |       | March                31, 2006 |   |
|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|-----------------------------------|------------|-------------------------------|--------|
| **ASSETS**                                                                                                                                                                                                                                                                   |   |                              |       |                          |   |   |   |
| CURRENT                ASSETS                                                                                                                                                                                                                                                |   |                              |       |                          |   |   |   |
| Cash                and cash equivalents                                                                                                                                                                                                                                     |   | $                                 | 3,069,981  |                          | $      | 3,015,491 |   |
| Accounts              receivable:                                                                                                                                                                                                                                            |   |                              |       |                          |   |   |   |
| Trade                less allowance for doubtful accounts of $15,000                                                                                                                                                                                                         |   |                              | 1,664,969  |                          |   | 1,106,435 |   |
| Employees                                                                                                                                                                                                                                                                    |   |                              | 21,623     |                          |   | 23,656 |   |
|                                                                                                                                                                                                                                                                         |   |                              | 1,686,592  |                          |   | 1,130,091 |   |
|                                                                                                                                                                                                                                                                         |   |                              |       |                          |   |   |   |
| Amount                due from factor                                                                                                                                                                                                                                        |   |                              | 4,194,749  |                          |   | 4,259,131 |   |
| Inventories,                net of allowance for obsolete inventory of $40,000                                                                                                                                                                                               |   |                              | 6,320,688  |                          |   | 4,062,086 |   |
| Prepaid                expenses                                                                                                                                                                                                                                              |   |                              | 332,365    |                          |   | 196,863 |   |
|                                                                                                                                                                                                                                                                         |   |                              |       |                          |   |   |   |
| TOTAL                CURRENT ASSETS                                                                                                                                                                                                                                          |   |                              | 15,604,375 |                          |   | 12,663,662 |   |
| DEFERRED                TAX ASSET                                                                                                                                                                                                                                            |   |                              | 627,384    |                          |   | 476,384 |   |
| INVESTMENT                IN JOINT VENTURE                                                                                                                                                                                                                                   |   |                              | 8,603,010  |                          |   | 7,140,859 |   |
|                                                                                                                                                                                                                                                                         |   |                              |       |                          |   |   |   |
| PROPERTY                AND EQUIPMENT - NET                                                                                                                                                                                                                                  |   |                              | 56,015     |                          |   | 62,212 |   |
|                                                                                                                                                                                                                                                                         |   |                              |       |                          |   |   |   |
| OTHER                ASSETS                                                                                                                                                                                                                                                  |   |                              | 15,486     |                          |   | 15,486 |   |
|                                                                                                                                                                                                                                                                         |   |                              |       |                          |   |   |   |
| TOTAL                ASSETS                                                                                                                                                                                                                                                  |   | $                                 | 24,906,270 |                          | $      | 20,358,603 |   |
|                                                                                                                                                                                                                                                                         |   |                              |       |                          |   |   |   |
| **LIABILITIES                AND SHAREHOLDERS’ EQUITY**                                                                                                                                                                                                                |   |                              |       |                          |   |   |   |
|                                                                                                                                                                                                                                                                         |   |                              |       |                          |   |   |   |
| CURRENT                LIABILITIES                                                                                                                                                                                                                                           |   |                              |       |                          |   |   |   |
| Accounts                payable                                                                                                                                                                                                                                              |   | $                                 | 1,315,296  |                          | $      | 1,604,845 |   |
| Accrued                liabilities:                                                                                                                                                                                                                                          |   |                              |       |                          |   |   |   |
| Patent                litigation and settlement reserve                                                                                                                                                                                                                      |   |                              | 835,084    |                          |   | 556,787 |   |
| Payroll,                commissions and other                                                                                                                                                                                                                                |   |                              | 1,074,316  |                          |   | 590,402 |   |
|                                                                                                                                                                                                                                                                         |   |                              |       |                          |   |   |   |
| TOTAL                CURRENT LIABILITIES                                                                                                                                                                                                                                     |   |                              | 3,224,696  |                          |   | 2,752,034 |   |
|                                                                                                                                                                                                                                                                         |   |                              |       |                          |   |   |   |
| COMMITMENTS                AND CONTINGENCIES                                                                                                                                                                                                                                 |   |                              | -          |                          |   | - |   |
|                                                                                                                                                                                                                                                                         |   |                              |       |                          |   |   |   |
| SHAREHOLDERS’                EQUITY                                                                                                                                                                                                                                    |   |                              |       |                          |   |   |   |
| Common                stock, $.01 par value per share; authorized 20,000,000 shares; issued                and                outstanding 2,412,408 and 2,258,409 shares at September 30, 2006                and                March                31, 2006, respectively |   |                              | 18,095     |                          |   | 16,940 |   |
| Additional                paid-in capital                                                                                                                                                                                                                                    |   |                              | 12,657,760 |                          |   | 11,577,583 |   |
| Retained                earnings                                                                                                                                                                                                                                             |   |                              | 9,005,719  |                          |   | 6,012,046 |   |
|                                                                                                                                                                                                                                                                         |   |                              |       |                          |   |   |   |
| TOTAL                SHAREHOLDERS’ EQUITY                                                                                                                                                                                                                              |   |                              | 21,681,574 |                          |   | 17,606,569 |   |
|                                                                                                                                                                                                                                                                         |   |                              |       |                          |   |   |   |
| TOTAL                LIABILITIES AND SHAREHOLDERS’ EQUITY                                                                                                                                                                                                              |   | $                                 | 24,906,270 |                          | $      | 20,358,603 |   |

*See      accompanying notes to consolidated financial statements.*

----

**UNIVERSAL      SECURITY INSTRUMENTS, INC. AND SUBSIDIARIES**

**CONSOLIDATED      STATEMENTS OF EARNINGS**

**(Unaudited)**

|                                                                 |   | Three                Months Ended September 30, |      |
|----------------------------------------------------------------------|--------|-------------------------------------------------|-----------|
|                                                                 |   |  2006                                      |      |  2005 |   |
| Net                sales                                             |   | $                                               | 8,018,088 |   | $ | 7,119,100 |   |
| Cost                of goods sold                                    |   |                                            | 5,410,166 |   |   | 4,840,262 |   |
|                                                                 |   |                                            |      |   |   |   |   |
| GROSS                PROFIT                                          |   |                                            | 2,607,922 |   |   | 2,278,838 |   |
|                                                                 |   |                                            |      |   |   |   |   |
| Research                and development expense                      |   |                                            | 85,628    |   |   | 49,636 |   |
| Selling,                general and administrative expense           |   |                                            | 1,731,644 |   |   | 1,700,809 |   |
|                                                                 |   |                                            |      |   |   |   |   |
| Operating                income                                      |   |                                            | 790,650   |   |   | 528,393 |   |
|                                                                 |   |                                            |      |   |   |   |   |
| Other                income (expense):                               |   |                                            |      |   |   |   |   |
| Interest                income                                       |   |                                            | 23,979    |   |   | - |   |
| Interest                expense                                      |   |                                            | (5,000    | ) |   | (15,103 | ) |
|                                                                 |   |                                            |      |   |   |   |   |
| INCOME                BEFORE EARNINGS FROM JOINT VENTURE             |   |                                            | 809,629   |   |   | 513,290 |   |
|                                                                 |   |                                            |      |   |   |   |   |
| Earnings                from Joint Venture:                          |   |                                            |      |   |   |   |   |
| Equity                in earnings of Joint Venture                   |   |                                            | 1,116,530 |   |   | 549,405 |   |
|                                                                 |   |                                            |      |   |   |   |   |
| NET                INCOME BEFORE TAXES                               |   |                                            | 1,926,159 |   |   | 1,062,695 |   |
|                                                                 |   |                                            |      |   |   |   |   |
| Provision                for income tax expense (benefit)            |   |                                            | 509,955   |   |   | (100,000 | ) |
|                                                                 |   |                                            |      |   |   |   |   |
| NET                INCOME                                            |   | $                                               | 1,416,204 |   | $ | 1,162,695 |   |
|                                                                 |   |                                            |      |   |   |   |   |
| Net                income per common share amounts:                  |   |                                            |      |   |   |   |   |
| Basic                                                                |   | $                                               | 0.59      |   | $ | 0.52 |   |
| Diluted                                                              |   | $                                               | 0.57      |   | $ | 0.48 |   |
|                                                                 |   |                                            |      |   |   |   |   |
| Weighted                average number of common shares outstanding: |   |                                            |      |   |   |   |   |
| Basic                                                                |   |                                            | 2,412,340 |   |   | 2,231,331 |   |
| Diluted                                                              |   |                                            | 2,490,647 |   |   | 2,433,249 |   |

*See      accompanying notes to consolidated financial statements.*

----

**UNIVERSAL      SECURITY INSTRUMENTS, INC. AND SUBSIDIARIES**

**CONSOLIDATED      STATEMENTS OF EARNINGS**

**(Unaudited)**

|                                                                 |   | Six                Months Ended September 30, |       |
|----------------------------------------------------------------------|--------|-----------------------------------------------|------------|
|                                                                 |   | 2006                                          |       | 2005 |   |
| Net                sales                                             |   | $                                             | 16,056,525 |   | $ | 14,042,910 |   |
| Cost                of goods sold                                    |   |                                          | 10,668,086 |   |   | 9,715,118 |   |
|                                                                 |   |                                          |       |   |   |   |   |
| GROSS                PROFIT                                          |   |                                          | 5,388,439  |   |   | 4,327,792 |   |
|                                                                 |   |                                          |       |   |   |   |   |
| Research                and development expense                      |   |                                          | 137,940    |   |   | 101,814 |   |
| Selling,                general and administrative expense           |   |                                          | 3,578,457  |   |   | 3,588,869 |   |
|                                                                 |   |                                          |       |   |   |   |   |
| Operating                income                                      |   |                                          | 1,672,042  |   |   | 637,109 |   |
|                                                                 |   |                                          |       |   |   |   |   |
| Other                income (expense):                               |   |                                          |       |   |   |   |   |
| Interest                income                                       |   |                                          | 40,576     |   |   | - |   |
| Interest                expense                                      |   |                                          | (12,500    | ) |   | (23,377 | ) |
|                                                                 |   |                                          |       |   |   |   |   |
| INCOME                BEFORE EARNINGS FROM JOINT VENTURE             |   |                                          | 1,700,118  |   |   | 613,732 |   |
|                                                                 |   |                                          |       |   |   |   |   |
| Earnings                from Joint Venture:                          |   |                                          |       |   |   |   |   |
| Equity                in earnings of Joint Venture                   |   |                                          | 2,169,509  |   |   | 1,251,305 |   |
|                                                                 |   |                                          |       |   |   |   |   |
| NET                INCOME BEFORE TAXES                               |   |                                          | 3,869,627  |   |   | 1,865,037 |   |
|                                                                 |   |                                          |       |   |   |   |   |
| Provision                for income tax expense (benefit)            |   |                                          | 875,955    |   |   | (187,428 | ) |
|                                                                 |   |                                          |       |   |   |   |   |
| NET                INCOME                                            |   | $                                             | 2,993,672  |   | $ | 2,052,465 |   |
|                                                                 |   |                                          |       |   |   |   |   |
| Net                income per common share amounts:                  |   |                                          |       |   |   |   |   |
| Basic                                                                |   | $                                             | 1.27       |   | $ | 0.93 |   |
| Diluted                                                              |   | $                                             | 1.20       |   | $ | 0.85 |   |
| Weighted                average number of common shares outstanding: |   |                                          |       |   |   |   |   |
| Basic                                                                |   |                                          | 2,361,155  |   |   | 2,217,757 |   |
| Diluted                                                              |   |                                          | 2,487,715  |   |   | 2,423,679 |   |

*See      accompanying notes to consolidated financial statements.*

----

**UNIVERSAL      SECURITY INSTRUMENTS, INC. AND SUBSIDIARIES**

**CONSOLIDATED      STATEMENTS OF CASH FLOWS**

**(Unaudited)**

|                                                                                                                      |   |  Six                Months Ended September 30, |       |
|---------------------------------------------------------------------------------------------------------------------------|--------|-----------------------------------------------------|------------|
|                                                                                                                      |   |  2006                                          |       |  2005 |   |
| OPERATING                ACTIVITIES                                                                                       |   |                                                |       |   |   |   |   |
| Net                income                                                                                                 |   | $                                                   | 2,993,672  |   | $ | 2,052,465 |   |
| Adjustments                to reconcile net income to net cash (used in) provided by operating                activities: |   |                                                |       |   |   |   |   |
| Depreciation                and amortization                                                                              |   |                                                | 6,198      |   |   | 13,818 |   |
| Earnings                of the Joint Venture                                                                              |   |                                                | (2,169,509 | ) |   | (1,251,303 | ) |
| Changes                in operating assets and liabilities:                                                               |   |                                                |       |   |   |   |   |
| Increase                in accounts receivable and amounts due from factor                                                |   |                                                | (492,119   | ) |   | (1,566,067 | ) |
| (Increase)                decrease in inventories and prepaid expenses                                                    |   |                                                | (2,394,104 | ) |   | 729,255 |   |
| Increase                (decrease) in accounts payable and accrued expenses                                               |   |                                                | 472,662    |   |   | (261,349 | ) |
| Increase                in deferred tax asset                                                                             |   |                                                | (151,000   | ) |   | (200,000 | ) |
|                                                                                                                      |   |                                                |       |   |   |   |   |
| NET                CASH PROVIDED BY OPERATING ACTIVITIES                                                                  |   |                                                | (1,734,200 | ) |   | (483,181 | ) |
|                                                                                                                      |   |                                                |       |   |   |   |   |
| INVESTING                ACTIVITIES:                                                                                      |   |                                                |       |   |   |   |   |
| Dividends                received from Joint Venture                                                                      |   |                                                | 707,358    |   |   | 513,420 |   |
| Purchase                of property and equipment                                                                         |   |                                                | -          |   |   | (4,010 | ) |
|                                                                                                                      |   |                                                |       |   |   |   |   |
| NET                CASH PROVIDED BY INVESTING ACTIVITIES                                                                  |   |                                                | 707,358    |   |   | 509,410 |   |
|                                                                                                                      |   |                                                |       |   |   |   |   |
| FINANCING                ACTIVITIES:                                                                                      |   |                                                |       |   |   |   |   |
| Tax                benefit from exercise of stock options                                                                 |   |                                                | 676,000    |   |   | - |   |
| Proceeds                from issuance of common stock from exercise of employee stock                options              |   |                                                | 405,332    |   |   | 46,317 |   |
|                                                                                                                      |   |                                                |       |   |   |   |   |
| NET                CASH PROVIDED BY FINANCING ACTIVITIES                                                                  |   |                                                | 1,081,332  |   |   | 46,317 |   |
|                                                                                                                      |   |                                                |       |   |   |   |   |
| INCREASE                IN CASH                                                                                           |   |                                                | 54,490     |   |   | 72,546 |   |
|                                                                                                                      |   |                                                |       |   |   |   |   |
| Cash                at beginning of period                                                                                |   |                                                | 3,015,491  |   |   | 59,287 |   |
|                                                                                                                      |   |                                                |       |   |   |   |   |
| CASH                AT END OF PERIOD                                                                                      |   | $                                                   | 3,069,981  |   | $ | 131,833 |   |
|                                                                                                                      |   |                                                |       |   |   |   |   |
| Supplemental                information:                                                                                  |   |                                                |       |   |   |   |   |
| Interest                paid                                                                                              |   | $                                                   | 12,500     |   | $ | 23,377 |   |

*See      accompanying notes to consolidated financial statements.*

----

**UNIVERSAL      SECURITY INSTRUMENTS, INC. AND SUBSIDIARIES**

**NOTES      TO CONSOLIDATED FINANCIAL STATEMENTS**

**(Unaudited)**

**Statement      of Management**

**Income      Taxes**

**Joint      Venture**

|                                       |   | 2006   |       | 2005   |   |
|--------------------------------------------|--------|--------|------------|--------|--------|
| Net                  sales                 |   | $      | 19,918,282 |   | $      | 11,603,563 |   |
| Gross                  profit              |   |   | 6,940,920  |   |   | 3,993,796 |   |
| Net                  income                |   |   | 4,513,465  |   |   | 2,222,036 |   |
| Total                  current assets      |   |   | 12,744,279 |   |   | 7,227,911 |   |
| Total                  assets              |   |   | 23,724,951 |   |   | 16,665,745 |   |
| Total                  current liabilities |   |   | 7,924,951  |   |   | 4,630,962 |   |

**Net      Income Per Common Share**

----

|                                                                                                                                    |   | Three                Months EndedSeptember                30, |      | Six                Months EndedSeptember                30, |   |
|-----------------------------------------------------------------------------------------------------------------------------------------|--------|---------------------------------------------------------------|-----------|-------------------------------------------------------------|--------|
|                                                                                                                                    |   | 2006                                                          |      | 2005                                                        |   | 2006 |   | 2005 |   |
| Weighted                average number of common shares outstanding for basic EPS                                                       |   |                                                          | 2,412,340 |                                                        |   | 2,231,331 |   |   | 2,361,155 |   |   | 2,217,757 |   |
| Shares                issued upon the assumed exercise of outstanding stock                options                                      |   |                                                          | 78,307    |                                                        |   | 201,918 |   |   | 126,560 |   |   | 205,922 |   |
| Weighted                average number of common and common equivalent shares outstanding                for                diluted EPS |   |                                                          | 2,490,647 |                                                        |   | 2,433,249 |   |   | 2,487,715 |   |   | 2,423,679 |   |

**Stock      Based Compensation**

*Adoption      of SFAS No. 123R. *
*      Share-Based Payment*
*      Accounting for Stock Issued to Employees*

*Fair      Value Determination.*

*Stock      Option Activity.*

*Stock      Compensation Expense.*

----

*      Accounting for Stock-Based Compensation,*
*      Accounting for Stock-Based Compensation - Transition and      Disclosure*

|                                                                                                                                                                                                    |   | Three                Months EndedSeptember                30, |      | Six                Months EndedSeptember                30, |   |
|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|---------------------------------------------------------------|-----------|-------------------------------------------------------------|--------|
|                                                                                                                                                                                                    |   | 2005                                                          |      | 2005                                                        |   |
| Net                income, as reported                                                                                                                                                                  |   | $                                                             | 1,162,695 |                                                        | $      | 2,052,465 |   |
| Deduct:                Total stock-based employee compensation expense determined under                fair                value based method for all awards, net of related tax                effects |   |                                                          | (25,962   | )                                                           |   | (51,924 | ) |
| Pro                forma net income                                                                                                                                                                     |   | $                                                             | 1,136,733 |                                                        | $      | 2,000,541 |   |
| Earnings                per share:                                                                                                                                                                      |   |                                                          |      |                                                        |   |   |   |
| Basic                - as reported                                                                                                                                                                      |   | $                                                             | 0.52      |                                                        | $      | 0.93 |   |
| Basic                - pro forma                                                                                                                                                                        |   | $                                                             | 0.51      |                                                        | $      | 0.90 |   |
| Diluted                - as reported                                                                                                                                                                    |   | $                                                             | 0.48      |                                                        | $      | 0.85 |   |
| Diluted                - pro forma                                                                                                                                                                      |   | $                                                             | 0.47      |                                                        | $      | 0.83 |   |

**Recent      Accounting Pronouncements**

----

*Accounting      for Uncertainty in Income Taxes: an interpretation of FASB Statement No.      109*
*Accounting      for Income Taxes*

**Subsequent      Events**

**Reclassifications**

----

| **ITEM 2.   ** | MANAGEMENT’S                DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF                OPERATIONS |
|------------------------------------|---------------------------------------------------------------------------------------------------------------------------|

**F**
**ORWARD**
**-L**
**OOKING        **
**S**
**TATEMENTS**

**R**
**ESULTS        OF**
**        O**
**PERATIONS**

**Three      Months Ended September 30, 2006 and 2005**

*Sales.*

*Gross      Profit Margin.*

*Expenses.*

*Interest      Expense and Income.*

*Income      Taxes.*

*Net      Income.*
*i.e.*

----

**Six      Months Ended September 30, 2006 and 2005**

*Sales.*

*Gross      Profit Margin.*

*Expenses.*

*Interest      Expense and Income.*

*Income      Taxes.*

*Net      Income.*
*i.e.*

**F**
**INANCIAL        **
**C**
**ONDITION**
** **
**AND**
**        L**
**IQUIDITY**

----

**J**
**OINT**
**        V**
**ENTURE**

*Net      Sales.*

*Net      Income.*

*Gross      Margins.*

*Expenses.*

*Interest      Income and Expense.*

*Liquidity.*

**C**
**RITICAL**
**        A**
**CCOUNTING**
**        P**
**OLICIES**

----

*Revenue      Recognition in Financial Statements*

**ITEM      3.**

**ITEM      4.**

----

**PART      II - OTHER INFORMATION**

**ITEM      1.**

**ITEM      6.** EXHIBITS

| Exhibit                No. |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |
|----------------------------|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| 3.1                        |   | Articles                  of Incorporation (incorporated by reference to the Company’s Quarterly                  Report on Form 10-Q for the period ended December 31, 1988, File                  No.                  1-31747)                                                                                                                                                                                                                                                 |
|                       |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |
| 3.2                        |   | Articles                  Supplementary, filed October 14, 2003 (incorporated by reference                  to                  Exhibit 3.1 to the Company’s Current Report on Form 8-K filed October 31,                  2002, file No. 1-31747)                                                                                                                                                                                                                                |
|                       |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |
| 3.3                        |   | Bylaws,                  as amended (incorporated by reference to Exhibit 3.3 to the Company’s                  Quarterly Report on Form 10-Q for the period ended June 30, 2004,                  File No.                  0-7885)                                                                                                                                                                                                                                              |
|                       |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |
| 10.1                       |   | Non-Qualified                  Stock Option Plan, as amended (incorporated by reference to Exhibit                  10.1                  to the Company’s Quarterly Report on Form 10-Q for the period ended                  September 30, 2003, File No. 1-31747)                                                                                                                                                                                                              |
|                       |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |
| 10.2                       |   | Joint                  Venture Agreement, as amended (incorporated by reference to Exhibit                  10.2                  to Amendment No. 1 on Form 10-K/A to the Company’s Annual Report on Form                  10-K for the year ended March 31, 2006, File No.                  1-31747)                                                                                                                                                                            |
|                       |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |
| 10.3                       |   | Amended                  Factoring Agreement with CIT Group (successor to Congress Talcott,                  Inc.)                  dated November 14, 1999 (incorporated by reference to Exhibit 10.3                  to the                  Company’s Annual Report on Form 10-K for the year ended March 31, 2003,                  File No. 1-31747)                                                                                                                        |
|                       |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |
| 10.4                       |   | Amendment                  to Factoring Agreement with CIT Group (incorporated by reference                  to                  Exhibit 10.4 to the Company’s Quarterly Report on Form 10-Q for the period                  ended September 30, 2002, File No. 1-31747)                                                                                                                                                                                                          |
|                       |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |
| 10.5                       |   | Amendment                  to Factoring Agreement with CIT Group dated September 28, 2004                  (incorporated by reference to Exhibit 10.5 to the Company’s Quarterly                  Report on Form 10-Q for the period ended September 30, 2004, File                  No.                  1-31747)                                                                                                                                                                |
|                       |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |
| 10.6                       |   | Lease                  between Universal Security Instruments, Inc. and National Instruments                  Company dated October 21, 1999 for its office and warehouse located                  at 7-A                  Gwynns Mill Court, Owings Mills, Maryland 21117 (incorporated by                  reference                  to Exhibit 10.19 to the Company’s Annual Report on Form 10-K for the                  Fiscal Year Ended March 31, 2000, File No. 1-31747) |
|                       |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |
| 10.7                       |   | Amended                  and Restated Employment Agreement dated July 18, 2005 between the                  Company                  and Harvey B. Grossblatt (incorporated by reference to Exhibit                  10.7 to the                  Company’s Quarterly Report on Form 10-Q for the period ended September                  30,                  2005, File No. 1-31747)                                                                                            |
|                       |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |
| 31.1                       |   | Rule                  13a-14(a)/15d-14(a) Certification of Chief Executive                  Officer*                                                                                                                                                                                                                                                                                                                                                                                    |
|                       |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |
| 31.2                       |   | Rule                  13a-14(a)/15d-14(a) Certification of Chief Financial                  Officer*                                                                                                                                                                                                                                                                                                                                                                                    |
|                       |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |
| 32.1                       |   | Section                  1350 Certifications*                                                                                                                                                                                                                                                                                                                                                                                                                                           |
|                       |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |
| 99.1                       |   | Press                  Release dated November 14,                  2006*                                                                                                                                                                                                                                                                                                                                                                                                                |

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**SIGNATURES**

|                                 |                                                                                 |                                  |
|--------------------------------------|--------------------------------------------------------------------------------------|---------------------------------------|
|                                 | **UNIVERSAL                SECURITY INSTRUMENTS, INC.**(Registrant)                  |
|                            |                                                                            |                             |
| Date:              November 14, 2006 | By:                                                                        | /s/              Harvey B. Grossblatt |
|                                 | Harvey                B. GrossblattPresident,                Chief Executive Officer |

|   |                                                                               |                                             |
|--------|------------------------------------------------------------------------------------|--------------------------------------------------|
|   | By:                                                                      | /s/ James              B.              Huff |
|   | James                B. HuffVice                President, Chief Financial Officer |

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