Exhibit 99.1

[GRAPHIC OMITTED
                                                           For Immediate Release
                                           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 Posts Increased Sales and Earnings
          Earnings Rise to $0.54/Share on 42 Percent Increase in Sales

OWINGS MILLS, MD, August 12, 2005: Universal Security  Instruments,  Inc. (AMEX:
UUU) today announced its financial  results for its first quarter ended June 30,
2005.

The Company  reported  net  earnings of $889,770 or $0.54 per basic share ($0.50
per diluted share),  on net sales which rose  approximately 42% to $6,923,810 in
the first  quarter  ended June 30, 2005  compared to net earnings of $766,297 or
$0.49 per basic share ($0.44 per diluted  share) on net sales of  $4,874,782  in
the same period last year.

Included in its 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.  These costs were  partially  offset by a net tax benefit of
$87,428.

The Company  cited  continued  strengths  in its core smoke and carbon  monoxide
alarm product lines in both the electrical distribution and retail markets.

"We are pleased we were able to drive sales growth  across all product lines and
we are continuing to focus on gaining market share in both the retail sector and
electrical  distribution  channel.  Our results  reflect our  continued  ability
during the  quarter to grow in a  financially  efficient  manner,"  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 36-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 SECURITY INSTRUMENTS, INC.
                        CONSOLIDATED STATEMENTS OF INCOME
                                   (UNAUDITED)

<TABLE>
                                                                                                   Three Months Ended June 30,
                                                                                               -------------------------------
                                                                                                   2005                2004
                                                                                               ----------           ----------
<CAPTION>
<S>                                                                                            <C>                  <C>
Sales                                                                                          $6,923,810           $4,874,782
Net income                                                                                       *889,770            **766,297
Income per share
      Basic                                                                                    $     0.54           $     0.49
      Diluted                                                                                  $     0.50           $     0.44
Weighted average number of common shares outstanding
      Basic                                                                                     1,653,025            1,564,702
      Diluted                                                                                   1,788,428            1,757,283

 * 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
** Due to the tax benefit  carryforward of prior years' operating losses, no tax
liability was incurred

                           CONSOLIDATED BALANCE SHEETS
                                   (UNAUDITED)

                                         ASSETS                                                            June 30,
                                                                                               -------------------------------
                                                                                                   2005                2004
                                                                                               ----------           ----------
Cash                                                                                           $  117,496           $   45,610
Accounts receivable and amount due from factor                                                  5,368,200            2,459,929
Inventory                                                                                       4,032,290            3,427,754
Prepaid expenses                                                                                  280,209              442,260
                                                                                               ----------           ----------
TOTAL CURRENT ASSETS                                                                            9,798,195            6,375,553

INVESTMENT IN HONG KONG JOINT VENTURE                                                           6,833,379            5,374,225

PROPERTY, PLANT AND EQUIPMENT - NET                                                                77,181               89,526
DEFERRED TAXES AND OTHER ASSETS                                                                   467,266               72,385
                                                                                               ----------           ----------
TOTAL ASSETS                                                                                   $17,176,021          $11,911,689
                                                                                               ==========           ==========

                          LIABILITIES AND SHAREHOLDERS' EQUITY

Accounts payable                                                                               $1,767,543           $1,143,358
Accrued liabilities                                                                             1,620,601              756,069
Current obligations under capital lease                                                             4,436
                                                                                               ----------           ----------
TOTAL CURRENT LIABILITIES                                                                       3,388,144            1,903,863

LONG TERM DEBT                                                                                       --                   --

SHAREHOLDERS' EQUITY
Common stock, $.01 par value per share; authorized 20,000,000 shares; issued and
outstanding 1,653,164 and 1,577,063 shares at June 30, 2005 and June 30, 2004,
respectively                                                                                       16,532               15,771
Additional paid-in capital                                                                     11,469,881           11,231,918
Retained earnings (accumulated deficit)                                                         2,301,464           (1,239,863)
                                                                                               ----------           ----------
TOTAL SHAREHOLDERS' EQUITY                                                                     13,787,877           10,007,826
                                                                                               ----------           ----------
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY                                                     $17,176,021          $11,911,689
                                                                                               ==========           ==========

</TABLE>
All shares have been  adjusted to reflect  the  4-for-3  stock split  payable on
April 5, 2004.


Statements  contained in this press  release that are not  historical  facts are
forward-looking  statements  as that term is defined in the  Private  Securities
Litigation Reform Act of 1995.  Although  UNIVERSAL SECURITY  INSTRUMENTS,  INC.
believes that the expectations reflected in such forward-looking  statements are
reasonable;   the   forward-looking   statements   are   subject  to  risks  and
uncertainties  that could cause actual results to differ  materially  from those
projections.