Exhibit 99.1

| | 500 Spruce Tree Centre
1600 University Avenue WestSt. Paul, Minnesota 55104-3825 USA651.603.7700 Fax:  651.603.7795
www.imagesensing.com
| | ----------------------------------------------------------------------------------------------------------------------------------------

NEWS RELEASE

|Contacts: | Art Bourgeois, Chief Financial OfficerImage Sensing Systems, Inc. Phone: 651.603.7700
|--------- | -------------------------------------------------------------------------------------

Image Sensing Systems Announces First Quarter Financial Results

Saint Paul, Minn.,- April 27,
2006-Image Sensing Systems, Inc. (ISS) (NASDAQ: ISNS), announced today financial
results for its first quarter ended March 31, 2006, marking the sixteenth consecutive
quarter of profitability for the company.

Net income for the quarter increased
26.7% to $503,000 ($.13 per fully diluted share) compared to $397,000 ($0.10 per fully
diluted share) for the comparable period in 2005. Revenues for the first quarter were
$2,589,000, a 21.7% increase from $2,127,000 for the comparable period a year ago.
Revenue from royalty income increased 28.2% to $2,176,000 from $1,697,000 in the first
quarter of 2005 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
2006 were $413,000 compared to $430,000 in the first quarter of 2005. Operating expenses
increased 31.4% as the company added engineering resources for new product development
and incurred added general and administrative expenses.

Jim Murdakes, Chairman and CEO said,
We continue to be pleased with our North American partner, ECPI, for its continued
solid performance in the North American market. International sales were flat as we were
unable to complete shipment of a large order for Korea in the quarter, which would have
increased our sales substantially. The shipment was completed in April and will be
reflected next quarter. First quarter sales in the European market are typically slow and
this was true again for 2006.

Headquartered in St. Paul,
Minnesota, Image Sensing Systems, Inc. combines expertise in image processing, hardware
and software engineering, and communications to develop video vehicle detection systems
for traffic management and control applications. The Autoscope vehicle detection system
is the world leader in video detection for advanced traffic management systems for
highways, tunnel incident detection, intersection control, and traffic data collection.
The Autoscope system provides traffic managers the means to reduce roadway congestion,
improve roadway planning, and improve cost efficiencies.

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-KSB for the year ended December 31, 2005.

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Image Sensing Systems,
Inc.Condensed Statement of Income(in thousands, except per share information)

|                                       |  |  |  | Three-Month PeriodsEnded March 31 |      
|-------------------------------------- |  |  |  | --------------------------------- | -----
|                                       |  |  |  | 2006                              |      
|Revenue                                |  |  |  |                                   |      
|Royalty income                         |  |  |  | $                                 | 2,176
|International sales                    |  |  |  |                                   | 413  
|                                       |  |  |  |                                   | 2,589
|Cost of revenue                        |  |  |  |                                   |      
|Royalty fee                            |  |  |  |                                   | 103  
|Cost of sales                          |  |  |  |                                   | 177  
|                                       |  |  |  |                                   | 280  
|Gross profit                           |  |  |  |                                   | 2,309
|Operating expenses                     |  |  |  |                                   |      
|Selling, marketing and product support |  |  |  |                                   | 622  
|General and administrative             |  |  |  |                                   | 562  
|Research and development               |  |  |  |                                   | 482  
|                                       |  |  |  |                                   | 1,666
|Income from operations                 |  |  |  |                                   | 643  
|Other income                           |  |  |  |                                   | 97   
|Income before income taxes             |  |  |  |                                   | 740  
|Income taxes                           |  |  |  |                                   | 237  
|Net income                             |  |  |  | $                                 | 503  
|                                       |  |  |  |                                   |      
|Net income per common share            |  |  |  |                                   |      
|Basic                                  |  |  |  | $                                 | 0.14 
|Diluted                                |  |  |  | $                                 | 0.13 
|                                       |  |  |  |                                   |      
|Weighted average shares outstanding    |  |  |  |                                   |      
|Basic                                  |  |  |  |                                   | 3,705
|Diluted                                |  |  |  |                                   | 3,898
|                                       |  |  |  |                                   |      
|                                       |  |  |  |                                   |      

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Image Sensing
Systems, Inc.Condensed Balance Sheet(in thousands)

|                                                         |  | March 31,2006 |        |  |  | December 31,2005 |  
|-------------------------------------------------------- |  | ------------- | ------ |  |  | ---------------- | -
|Assets                                                   |  |               |        |  |  |                  |  
|Current assets                                           |  |               |        |  |  |                  |  
|Cash and cash equivalents                                |  | $             | 8,987  |  |  |                  | $
|Investments                                              |  |               | 4,100  |  |  |                  |  
|Receivables                                              |  |               | 2,366  |  |  |                  |  
|Inventories                                              |  |               | 344    |  |  |                  |  
|Prepaid expenses and deferred taxes                      |  |               | 201    |  |  |                  |  
|                                                         |  |               | 15,998 |  |  |                  |  
|Property and equipment, net                              |  |               | 405    |  |  |                  |  
|Goodwill and capitalized software development costs, net |  |               | 1,147  |  |  |                  |  
|                                                         |  |               | 17,550 |  |  |                  |  
|Liabilities and Shareowners Equity                      |  |               |        |  |  |                  |  
|Current liabilities                                      |  |               |        |  |  |                  |  
|Accounts payable and accrued expenses                    |  |               | 875    |  |  |                  |  
|Income taxes payable                                     |  |               | 330    |  |  |                  |  
|                                                         |  |               | 1,205  |  |  |                  |  
|Deferred income taxes                                    |  |               | 52     |  |  |                  |  
|Shareholders equity                                     |  |               | 16,293 |  |  |                  |  
|                                                         |  | $             | 17,550 |  |  |                  | $
|                                                         |  |               |        |  |  |                  |  

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Image Sensing
Systems, Inc.Condensed Statement of Cash Flows(in thousands)

|                                                                       | Three-Month Periods Ended
March 31
|---------------------------------------------------------------------- | ----------------------------------
|                                                                       | 2006                              
|Operating activities                                                   |                                   
|Net income                                                             | $503                              
|Adjustments to reconcile net income to net cash provided by operations |                                   
|Depreciation and amortization                                          | 83                                
|Changes in operating assets and liabilities                            | 1,263                             
|Net cash provided by operating activities                              | 1,849                             
|                                                                       |                                   
|Investing activities                                                   |                                   
|Purchase of property and equipment                                     | (94)                              
|Sale of short-term investments                                         | (1,800)                           
|Net cash used in investing activities                                  | (1,894)                           
|                                                                       |                                   
|Financing activity  proceeds from exercise of stock options           | 26                                
|                                                                       |                                   
|Increase (decrease) in cash and cash equivalents                       | (19)                              
|Cash and cash equivalents, beginning of period                         | 9,006                             
|Cash and cash equivalents, end of period                               | $8,987                            

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