Exhibit 99.1

                                              For Immediate ReleasePHIC OMITTED]
                                           Contact: Harvey Grossblatt, President
                                            Universal Security Instruments, Inc.
                                                          410-363-3000, Ext. 224
                                                                              or
                                                          Don Hunt, Jeff Lambert
                                             Lambert, Edwards & Associates, Inc.
                                                                    616-233-0500

        Universal Security Instruments Reports Highest Quarterly Earnings
                        in the Company's 37 Year History

          Earnings Rise to $0.91/Share on 16 Percent Increase in Sales

OWINGS MILLS, MD, August 14, 2006: Universal Security  Instruments,  Inc. (AMEX:
UUU) today announced its financial  results for its first quarter ended June 30,
2006.

The Company  reported a 77% increase in net income to  $1,577,468,  or $0.91 per
basic share ($0.83 per diluted share), on net sales which rose approximately 16%
to $8,038,437 in the first quarter ended June 30, 2006 compared to net income of
$889,770  or $0.54 per basic  share  ($0.50 per  diluted  share) on net sales of
$6,923,810 in the same period last year.

The Company cited  continued  market share gains in its core product  lines,  as
well as a substantially  increased contribution from its Hong Kong Joint Venture
as key  drivers  during the  period.  Included in the  Company's  first  quarter
results  was a  provision  for  income tax  expense  in the amount of  $366,000,
compared to a net tax benefit of $87,428 in the  comparable  2005  quarter.  For
income tax  purposes,  the income tax expense in the quarter ended June 30, 2006
was offset by the tax benefit  associated  with the  exercise of employee  stock
options.  As required  by GAAP,  this tax  benefit  was  credited to  additional
paid-in  capital and,  accordingly,  the $366,000  income tax liability does not
represent a cash requirement of the Company.  Also included in last year's first
quarter results were legal fees of  approximately  $430,000  associated with the
settlement of a suit brought by a former director and company executive.

"We are very pleased with our results for the period as we build on our momentum
in both the electrical  distribution and retail  channels,  while continuing our
efforts to control  operating  costs and maintain  efficiencies  throughout  our
operation," said Harvey Grossblatt, chief executive officer.

UNIVERSAL SECURITY INSTRUMENTS,  INC. is a U.S.-based  manufacturer (through its
Hong Kong Joint Venture) and distributor of safety and security devices. Founded
in 1969,  the  Company  has a 37-year  heritage  of  developing  innovative  and
easy-to-install products,  including smoke, fire and carbon monoxide alarms. For
more  information  on  Universal  Security  Instruments,  visit our  website  at
www.universalsecurity.com.

                                    * more *

            7-A GWYNNS MILL COURT o OWINGS MILLS, MARYLAND 21117, USA
                   (410) 363-3000 o www.universalsecurity.com

<PAGE>

Universal/Page 2

                      UNIVERSAL SECURITY INSTRUMENTS, INC.

                        CONSOLIDATED STATEMENTS OF INCOME
                                   (UNAUDITED)

                                                     Three Months Ended June 30,
                                                           2006         2005
                                                        ----------   ----------
Sales                                                   $8,038,437   $6,923,810
Net income                                               1,577,468     *889,770
Income per share
  Basic                                                 $     0.91   $     0.54
  Diluted                                               $     0.83   $     0.50
Weighted average number of common shares outstanding
  Basic                                                  1,732,201    1,653,025
  Diluted                                                1,900,779    1,788,428

*     A net tax benefit of $87,428 was  recorded due to the  recognition  of net
      operating  loss  carryforwards  and due to a  reduction  in the  valuation
      allowance  previously  established to offset tax benefits  associated with
      our deferred tax assets.

                           CONSOLIDATED BALANCE SHEETS
                                   (UNAUDITED)

<TABLE>
<CAPTION>
                                  ASSETS                                         June 30,
                                                                         -------------------------
                                                                            2006          2005
                                                                         -----------   -----------
<S>                                                                      <C>           <C>
Cash                                                                     $ 2,520,233   $   117,496
Accounts receivable and amount due from factor                             5,678,700     5,368,200
Inventory                                                                  5,050,750     4,032,290
Prepaid expenses                                                             443,500       280,209
                                                                         -----------   -----------
TOTAL CURRENT ASSETS                                                      13,693,183     9,798,195

INVESTMENT IN HONG KONG JOINT VENTURE                                      8,193,838     6,833,379

PROPERTY, PLANT AND EQUIPMENT - NET                                           59,001        77,181
DEFERRED TAXES AND OTHER ASSETS                                              491,868       467,266
                                                                         -----------   -----------
TOTAL ASSETS                                                             $22,437,890   $17,176,021
                                                                         ===========   ===========

                   LIABILITIES AND SHAREHOLDERS' EQUITY

Accounts payable                                                         $ 1,257,344   $ 1,767,543
Accrued liabilities                                                        1,241,099     1,620,601
                                                                         -----------   -----------
TOTAL CURRENT LIABILITIES                                                  2,498,443     3,388,144

LONG TERM DEBT                                                                    --            --

SHAREHOLDERS' EQUITY
Common stock, $.01 par value per share; authorized 20,000,000 shares;
issued and outstanding 1,808,951 and 1,653,164 shares at June 30, 2006
and June 30, 2005, respectively                                               18,090        16,532
Additional paid-in capital                                                12,331,843    11,469,881
Retained earnings                                                          7,589,514     2,301,464
TOTAL SHAREHOLDERS' EQUITY                                                19,939,447    13,787,877
                                                                         -----------   -----------
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY                               $22,437,890   $17,176,021
                                                                         ===========   ===========
</TABLE>

This press release may contain forward-looking statements. These forward-looking
statements may generally be identified by the use of the words "may," "expects,"
"anticipates,"  "believes,"  "estimates," and similar  expressions and involve a
number of risks and  uncertainties.  For a variety of reasons,  actually results
may differ  materially,  from those  described  in or  contemplated  by any such
forward-looking statement. Consequently, the reader is cautioned to consider all
forward-looking  statements in light of the risks to which they are subject.  We
are not able to identify or control  all  circumstances  that could occur in the
future that may adversely affect our business and operating results. These risks
include,  but are not  limited  to,  those  risks  identified  in the  Company's
periodic  reports filed with The Securities and Exchange  Commission,  including
our most recent Annual Report on Form 10-K.