Exhibit 99.1



500 Spruce Tree Centre
1600 University Avenue West
St. Paul, Minnesota 55104-3825 USA
651.603.7700 Fax:  651.603.7795
www.imagesensing.com




NEWS RELEASE



Contacts:
        Greg Smith, Chief Financial Officer
Image Sensing Systems, Inc. Phone: 651.603.7700




FOR IMMEDIATE RELEASE



Image Sensing Systems Announces First Quarter Financial Results



Saint Paul, Minn., April 26, 2007-Image Sensing Systems, Inc. (ISS) (NASDAQ: ISNS), announced today financial results for its first quarter ended March 31, 2007, marking the twentieth consecutive quarter of profitability for the company.



Net income for the quarter increased 11% to $556,000 ($.14 per fully diluted share) compared to $503,000 ($0.13 per fully diluted share) for the comparable period in 2006. Revenues for the first quarter were $2.6 million, the same as the comparable period a year ago. Revenue from royalty income increased 5% to $2.3 million from $2.2 million in the first quarter of 2006 and reflects the continued success that ISSs North American distributor, Econolite Control Products, Inc. (ECPI), has had in selling Autoscope products in the United States and Canada. International sales for the first quarter of 2007 were $353,000 compared to $413,000 in the first quarter of 2006.



Jim Murdakes, Chairman and CEO, said, Considering the typical seasonally slow first quarter, we are satisfied with our results. We kicked off our new Terra Autoscope line of products with an announcement in March and shipments are planned of our core Solo Terra and RackVision Terra products for North American markets in the coming quarter.



Because of our tiered manufacturing and distribution, there are boundaries to our direct control of sales processes. Therefore, as we transition to the Terra line, we have increased uncertainty and unpredictability as to the ramp up of Terra sales versus the tail off of older products. As such, we are carefully watching expenses. Operating expenses increased 11% over the comparable period a year ago; however, most of the increase is due to adding engineering resources for new product development in the second half of 2006.



Headquartered in St. Paul, Minnesota, Image Sensing Systems, Inc. combines expertise in image processing, hardware and software engineering and communications to develop Autoscope® video detection systems for advanced traffic management and control applications. With equipment supplied for over 50,000 cameras in more than 55 countries, we are a global leader in video detection for management and safety systems for highways, bridges, tunnels and intersections. Autoscope products provide transportation managers the means to reduce roadway congestion, improve safety and security, gain cost efficiencies and assist in roadway planning.



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Safe Harbor Statement:Statements made in this release concerning the Companys or managements intentions, expectations, or predictions about future results or events are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Such statements reflect managements current expectations or beliefs, and are subject to risks and uncertainties that could cause actual results or events to vary from stated expectations, which variations could be material and adverse. Factors that could produce such a variation include, but are not limited to, the following: the inherent unreliability of earnings, revenue and cash flow predictions due to numerous factors, many of which are beyond the Companys control; developments in the demand for the Companys products and services; relationships with the Companys
major customers and suppliers; unanticipated delays, costs and expenses inherent in the development and marketing of new products and services; the impact of governmental laws and regulations; and competitive factors. Our forward-looking statements speak only as of the time made, and we assume no obligation to publicly update any such statements. Additional information concerning these and other factors that could cause actual results and events to differ materially from the Companys current expectations are contained in the Companys Form 10-K for the year ended December 31, 2006.



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Image Sensing Systems, Inc.

Unaudited Consolidated Statement of Income

(in thousands, except per share information):



Three-Month PeriodEnded March 312007
        
        2006RevenueRoyalty income
        
        $
        2,291
        
        $
        2,176International sales
        
        
        353
        
        
        4132,644
        
        
        2,589Cost of revenueRoyalty fee
        
        
        
        
        
        103Cost of sales
        
        
        127
        
        
        177127
        
        
        280Gross profit
        
        
        2,517
        
        
        2,309Operating expensesSelling, marketing and product support
        
        
        685
        
        
        622General and administrative
        
        
        570
        
        
        562Research and development
        
        
        594
        
        
        4821,849
        
        
        1,666Income from operations
        
        
        668
        
        
        643Other income
        
        
        138
        
        
        97Income before income taxes
        
        
        806
        
        
        740Income taxes
        
        
        250
        
        
        237Net income
        
        $
        556
        
        $
        503Net income per common shareBasic
        
        $
        0.15
        
        $
        0.14Diluted
        
        $
        0.14
        
        $
        0.13Weighted average shares outstandingBasic
        
        
        3,774
        
        
        3,705Diluted
        
        
        3,888
        
        
        3,898






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Image Sensing Systems, Inc.

Unaudited Condensed Consolidated Balance Sheet

(in thousands)



March 31,2007
        
        December 31,2006AssetsCurrent assetsCash and cash equivalents
        
        $
        12,580
        
        $
        11,626Investments
        
        
        3,100
        
        
        4,100Receivables
        
        
        2,948
        
        
        2,957Inventories
        
        
        913
        
        
        670Prepaid expenses and deferred taxes
        
        
        347
        
        
        29919,888
        
        
        19,652Property and equipment, net
        
        
        461
        
        
        522Goodwill
        
        
        1,050
        
        
        1,050$
        21,399
        
        $
        21,224Liabilities and Shareholders EquityCurrent liabilitiesAccounts payable and accrued expenses
        
        $
        1,072
        
        $
        1,652Income taxes payable
        
        
        352
        
        
        2311,424
        
        
        1,883Deferred income taxes
        
        
        28
        
        
        8Shareholders equity
        
        
        19,947
        
        
        19,333$
        21,399
        
        $
        21,224






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Image Sensing Systems, Inc.

Unaudited Condensed Consolidated Statement of Cash Flows

(in thousands)



Three-Month Period EndedMarch 312007
        
        2006Operating activitiesNet income
        
        $
        556
        
        $
        503Adjustments to reconcile net income to net cash provided by operationsDepreciation and amortization
        
        
        57
        
        
        83Stock option expense
        
        
        29
        
        
        43Changes in operating assets and liabilities
        
        
        (722
        )
        
        1,220Net cash provided by (used in) operating activities
        
        
        (80
        )
        
        1,849Investing activitiesPurchase of property and equipment, net of disposals
        
        
        4
        
        
        (94
        )Sale (purchase) of short-term investments
        
        
        1,000
        
        
        (1,800
        )Net cash used in investing activities
        
        
        1,004
        
        
        (1,894
        )Financing activity  proceeds from exercise of stock options
        
        
        30
        
        
        26Increase (decrease) in cash and cash equivalents
        
        
        954
        
        
        (19
        )Cash and cash equivalents, beginning of period
        
        
        11,626
        
        
        9,006Cash and cash equivalents, end of period
        
        $
        12,580
        
        $
        8,987


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