**Exhibit      99.1**

|  | **For                  Immediate Release**Contact:                  Harvey Grossblatt, CEOUniversal                  Security Instruments, Inc.410-363-3000,                  Ext. 224orDon                  Hunt, Jeff LambertLambert,                  Edwards & Associates, Inc.616-233-0500 |
|--|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

***Universal      Security Instruments***

***Reports      Highest Quarterly Earnings in its 37-Year      History***

** **

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*“Safe      Harbor” Statement under the Private Securities Litigation Reform Act of 1995:      Certain matters discussed in this news release may constitute forward-looking      statements within the meaning of the federal securities laws that inherently      include certain risks and uncertainties.  Actual results could differ      materially from those projected in or contemplated by the forward-looking      statements due to a number of factors, including, among other items, our and      our      Hong Kong Joint Venture's respective ability to maintain operating      profitability, currency fluctuations, the impact of current and future laws      and      governmental regulations affecting us and our Hong Kong Joint Venture and other      factors which may be identified from time to time in our Securities and Exchange      Commission filings and other public announcements.  We do not undertake and      specifically disclaim any obligation to update any forward-looking statements      to      reflect occurrence of anticipated or unanticipated events or circumstances      after      the date of such statements.  We will revise our outlook from time to time      and frequently will not disclose such revisions publicly.*

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**UNIVERSAL      SECURITY INSTRUMENTS, INC**
*.*

**CONSOLIDATED      STATEMENT OF INCOME**

|                                                                  |   | (UNAUDITED)                                      |      |
|-----------------------------------------------------------------------|--------|--------------------------------------------------|-----------|
|                                                                  |   | Three                  Months Ended December 31, |      |
|                                                                  |   | 2006                                             |      | 2005 |   |
| Sales                                                                 |   | $                                                | 8,620,893 |   | $ | 7,353,597 |   |
| Net                  income                                           |   |                                             | 1,712,883 |   |   | 1,456,809 |   |
| Income                  per share                                     |   |                                             |      |   |   |   |   |
| Basic                                                                 |   | $                                                | 0.71      |   | $ | 0.65 |   |
| Diluted                                                               |   | $                                                | 0.68      |   | $ | 0.60 |   |
| Weighted                  average number of common shares outstanding |   |                                             |      |   |   |   |   |
| Basic                                                                 |   |                                             | 2,417,972 |   |   | 2,231,331 |   |
| Diluted                                                               |   |                                             | 2,514,536 |   |   | 2,436,136 |   |

|                                                                  |   | (UNAUDITED)                                     |       |
|-----------------------------------------------------------------------|--------|-------------------------------------------------|------------|
|                                                                  |   | Nine                  Months Ended December 31, |       |
|                                                                  |   | 2006                                            |       | 2005 |   |
| Sales                                                                 |   | $                                               | 24,655,342 |   | $ | 21,396,507 |   |
| Net                  income                                           |   |                                            | 4,699,262  |   |   | 3,509,274 |   |
| Income                  per share                                     |   |                                            |       |   |   |   |   |
| Basic                                                                 |   | $                                               | 1.97       |   | $ | 1.58 |   |
| Diluted                                                               |   | $                                               | 1.88       |   | $ | 1.45 |   |
| Weighted                  average number of common shares outstanding |   |                                            |       |   |   |   |   |
| Basic                                                                 |   |                                            | 2,380,163  |   |   | 2,222,297 |   |
| Diluted                                                               |   |                                            | 2,499,175  |   |   | 2,423,900 |   |

**CONSOLIDATED      BALANCE SHEET**

| ASSETS                                                                                                                                                                                                                                                          |   | December                31, |       |
|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|-----------------------------|------------|
|                                                                                                                                                                                                                                                            |   | 2006                        |       | 2005 |   |
| Cash                                                                                                                                                                                                                                                            |   | $                           | 533,882    |   | $ | 1,070,356 |   |
| Accounts                receivable and amount due from factor                                                                                                                                                                                                   |   |                        | 6,400,511  |   |   | 5,146,131 |   |
| Inventory                                                                                                                                                                                                                                                       |   |                        | 9,854,960  |   |   | 5,096,666 |   |
| Prepaid                expenses                                                                                                                                                                                                                                 |   |                        | 383,026    |   |   | 247,747 |   |
| TOTAL                CURRENT ASSETS                                                                                                                                                                                                                             |   |                        | 17,172,379 |   |   | 11,560,900 |   |
| INVESTMENT                IN HONG KONG JOINT VENTURE                                                                                                                                                                                                            |   |                        | 9,031,410  |   |   | 7,136,126 |   |
| PROPERTY                AND EQUIPMENT - NET                                                                                                                                                                                                                     |   |                        | 2,679,077  |   |   | 66,794 |   |
| OTHER                ASSETS AND DEFERRED TAX ASSET                                                                                                                                                                                                              |   |                        | 964,421    |   |   | 715,870 |   |
| GOODWILL                                                                                                                                                                                                                                                        |   |                        | 1,508,718  |   |   | - |   |
| TOTAL                ASSETS                                                                                                                                                                                                                                     |   | $                           | 31,356,005 |   | $ | 19,479,690 |   |
|                                                                                                                                                                                                                                                            |   |                        |       |   |   |   |   |
| LIABILITIES                AND SHAREHOLDERS’ EQUITY                                                                                                                                                                                                       |   |                        |       |   |   |   |   |
|                                                                                                                                                                                                                                                            |   |                        |       |   |   |   |   |
| Notes                and lease obligation payable                                                                                                                                                                                                               |   | $                           | 2,129,604  |   | $ | - |   |
| Accounts                payable and accrued expenses                                                                                                                                                                                                            |   |                        | 3,620,956  |   |   | 1,879,298 |   |
| Accrued                liabilities                                                                                                                                                                                                                              |   |                        | 2,149,165  |   |   | 1,147,132 |   |
| TOTAL                CURRENT LIABILITIES                                                                                                                                                                                                                        |   |                        | 7,899,725  |   |   | 3,026,430 |   |
| LONG                TERM LEASE OBLIGATION                                                                                                                                                                                                                       |   |                        | 55,810     |   |   | - |   |
| MINORITY                INTEREST`                                                                                                                                                                                                                               |   |                        | -          |   |   | - |   |
| SHAREHOLDERS’                EQUITY                                                                                                                                                                                                                       |   |                        | -          |   |   | - |   |
| Common                stock, $.01 par value per share; authorized 20,000,000 shares;                issued                and outstanding 2,420,573 and 2,258,409 shares at December 31,                2006                and December 31, 2005, respectively |   |                        | 18,181     |   |   | 16,737 |   |
| Additional                paid-in capital                                                                                                                                                                                                                       |   |                        | 12,767,187 |   |   | 11,515,556 |   |
| Retained                earnings                                                                                                                                                                                                                                |   |                        | 10,711,308 |   |   | 4,920,967 |   |
| Other                comprehensive income (loss)                                                                                                                                                                                                                |   |                        | (96,206    | ) |   | - |   |
| TOTAL                SHAREHOLDERS’ EQUITY                                                                                                                                                                                                                 |   |                        | 23,400,470 |   |   | 16,453,260 |   |
| TOTAL                LIABILITIES AND SHAREHOLDERS’ EQUITY                                                                                                                                                                                                 |   | $                           | 31,356,005 |   | $ | 19,479,690 |   |
|                                                                                                                                                                                                                                                            |   |                        |       |   |   |   |   |
| All                shares have been adjusted to reflect the 4-for-3 stock split paid                on                October 16, 2006.                                                                                                                         |

**7-A      GWYNNS MILL COURT • OWINGS MILLS, MARYLAND 21117, USA**

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