# EXHIBIT 99.1



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| | Contact:   Scott Drill, President and CEO(763) 392-6200; (800) 874-4648

FOR IMMEDIATE RELEASE



Insignia Systems, Inc. Reports Third Quarter

Net Income of $228,000 On Net Sales of $5,112,000



MINNEAPOLISOctober 31, 2006 Insignia Systems, Inc. (Nasdaq: ISIG) today
reported net sales of $5,112,000 for the third quarter ended September 30, 2006, a decrease of 3.3%, compared to net sales of
$5,285,000 for the third quarter of 2005. Net income for the third quarter of 2006 was $228,000 or $0.02 per basic share ($0.01
per fully diluted share), compared to a net loss of $(432,000), or $(0.03) per share (basic and fully diluted), for the third
quarter of 2005. Insignia Point-of-Purchase Services®(POPS) revenues for the third quarter were $4,452,000, a
decrease of 1.0%, compared to third quarter 2005 POPS revenues of $4,498,000. Stock-based compensation expense of $40,000 was
recognized during the third quarter ended September 30, 2006 resulting from the Companys adoption of Statement of Financial
Accounting Standards (SFAS) No. 123R effective January 1, 2006.



For the nine months ended September 30, 2006, net
sales were $16,387,000, an increase of 4.7%, compared to net sales of $15,653,000 for the first nine months of 2005. Net income
for the first nine months of 2006 was $1,816,000 or $0.12 per share (basic and fully diluted), compared to a net loss of
$(1,997,000), or $(0.13) per share (basic and fully diluted) for the same period of 2005. Insignia POPS revenues for the first
nine months of 2006 were $14,294,000, an increase of 7.7%, compared to POPS revenues of $13,276,000 for the first nine months of
2005. Stock-based compensation expense of $191,000 was recognized during the first nine months of 2006.



CEO Scott Drill commented, During the quarter we
made significant progress on both the business and legal fronts which positions us well for the future. On the business front, our
sales force is working well with the Valassis sales force and this has resulted in more sales activity with the consumer package
goods companies than at any time in the history of POPS. We recently wrote the largest POPS contract ever for one of our joint
accounts with Valassis. Total revenue for Insignia from this contract will be $2,250,000 of which $1,800,000 will be recognized in
2007, with the balance in the first half of 2008. We are optimistic about our growth prospects in 2007 based on the amount of
business we have pending.



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Insignia Systems, Inc.  6470 Sycamore Court North, Maple Grove, MN 55369  Phone 763-392-6200  Fax 763-392-6222

http://www.insigniasystems.com   email: info@insigniasystems.com



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|October 31, 2006 | Insignia Systems, Inc. Reports Third Quarter Net Income | Page 2
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Drill continued, On the legal front, we are
moving into the discovery stage in our Minnesota case against News America Marketing In-Store, Inc. (NAMI) and Albertsons,
Inc. There had been a short stay of discovery pending a ruling in New York on an 18-month old motion to enjoin filed by NAMI. That
motion was recently denied and the New York court ruled that our antitrust claims do not need to be brought as part of the New
York action. Also, the State of Minnesota through its Attorney General recently intervened as a co-plaintiff in the business
disparagement portion of our Minnesota case which we believe further strengthens our legal position. Discovery continues to be on
hold in our New York case where we have had an Amended Motion to Dismiss pending since August 18, 2004.



Drill went on to state, We expect to be
profitable again in the fourth quarter in that we have POPS customer orders of approximately $4,445,000 with four weeks of selling
time left. Last years fourth quarter POPS revenue was $3,169,000. Our cash position at September 30, 2006 was $3,380,000.
Legal expense for the 2006 third quarter was $322,000 versus $235,000 in the third quarter of 2005.



Conference Call

The Company will host a conference call today, October
31, at 4:00 p.m. Central Time. To access the live call, dial 800-474-8920. The conference code is 5272394. Please be sure to call
in about 5-10 minutes before the call is scheduled to begin. Audio replay will be available approximately three hours after the
call through November 8, 2006. To access the replay, dial 888-203-1112 and reference the passcode 5272394.



Insignia Systems, Inc. is an innovative developer and
marketer of in-store advertising products, programs and services to retailers and consumer goods manufacturers. Through its
Point-Of-Purchase Services (POPS) business, Insignia is contracted with more than 9,000 chain retail supermarkets and drug stores,
including A&P, Kroger, Pathmark and Safeway. Through the nationwide POPS network, over 190 major consumer goods manufacturers,
including General Mills, Reckitt Benckiser, Kellogg Company, Nestlé, Pfizer, S.C. Johnson & Son and Tyson Foods, have
taken their brand messages to the point-of-purchase. For additional information, contact (888) 474-7677, or visit the Insignia
POPS Web site at www.insigniapops.com.



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Insignia Systems, Inc.  6470 Sycamore Court North, Maple Grove, MN 55369  Phone 763-392-6200  Fax 763-392-6222

http://www.insigniasystems.com   email: info@insigniasystems.com

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|October 31, 2006 | Insignia Systems, Inc. Reports Third Quarter Net Income | Page 3
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Except for the historical information contained
herein, the matters discussed in this news release are forward-looking statements. The Companys actual results could differ
materially from these forward-looking statements as a result of a number of factors, including risks and uncertainties as
described in the Companys SEC Form 10-K for the year ended December 31, 2005 and other recent filings with the Securities
and Exchange Commission. The Company wishes to caution readers not to place undue reliance upon any such forward-looking
statements, which speak only as of the date made.



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Insignia Systems, Inc.  6470 Sycamore Court North, Maple Grove, MN 55369  Phone 763-392-6200  Fax 763-392-6222

http://www.insigniasystems.com   email: info@insigniasystems.com

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|October 31, 2006 | Insignia Systems, Inc. Reports Third Quarter Net Income | Page 4
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# Insignia Systems, Inc.
STATEMENTS OF OPERATIONS
(Unaudited)

|                                                           | Three Months EndedSeptember 30, |  | Nine Months EndedSeptember 30,
|---------------------------------------------------------- | ------------------------------- |  | ------------------------------
|
|Net Sales                                                  |                                 |  | $                             
|Cost of Sales(1)                                           |                                 |  |                               
|Gross Profit                                               |                                 |  |                               
|Operating Expenses:                                        |                                 | 
|Selling(1)                                                 |                                 |  |                               
|Marketing(1)                                               |                                 |  |                               
|General & administrative(1)                                |                                 |  |                               
|                                                          
|Operating Income (Loss)                                    |                                 |  |                               
|Other Income                                               |                                 |  |                               
|                                                          
|Net Income (Loss)                                          |                                 |  | $                             
|                                                          
|Net Income (Loss) Per Share                               
|Basic                                                      |                                 |  | $                             
|Diluted                                                    |                                 |  | $                             
|                                                          
|Shares used in calculation of net income (loss) per share: |                                 | 
|Basic                                                      |                                 |  |                               
|Diluted                                                    |                                 |  |                               

(1)     Includes stock-based compensation expense of:

|Cost of Sales            |  |  | $ | 15,000 |   | $ | 42,000  | 
|------------------------ |  |  | - | ------ | - | - | ------- | 
|Selling                  |  |  |   | (7,000 | ) |   | 40,000  | 
|Marketing                |  |  |   | 8,000  |   |   | 23,000  | 
|General & Administrative |  |  |   | 24,000 |   |   | 86,000  | 
|                         |  |  |   |       
|                         |  |  | $ | 40,000 |   | $ | 191,000 | 
|                         |  |  |   |       

(2)     Includes $100,000 related to the settlement
with the founder of VALUStix.

# SELECTED BALANCE SHEET DATA

|                          | September 30,2006 |  | December 31,2005
|------------------------- | ----------------- |  | ----------------
|Cash and cash equivalents |                   |  | $               
|Working capital           |                   |  | $               
|Total assets              |                   |  | $               
|Total liabilities         |                   |  | $               
|Shareholders equity      |                   |  | $               

####



Insignia Systems, Inc.  6470 Sycamore Court North, Maple Grove, MN 55369  Phone 763-392-6200  Fax 763-392-6222

http://www.insigniasystems.com   email: info@insigniasystems.com

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