New Federal Transportation Bill Signed into Law

SAINT PAUL, Minn., July 10, 2012

Ken Aubrey, CEO, said, "We are happily surprised, contrary to the expectations of many, that this bill made its way into law before the election.  As we stated in previous discussions on the matter, we believe it is critical for our state and municipal customers to have an adequate advance look ahead in Federal funding to be able to plan significant projects.  In our view, many of these projects became all but impossible to plan due to the stop and start nature of ongoing short extensions.  We believe MAP-21 once again gives our customers an improved time frame to make prudent, return-based investment decisions that were difficult to contemplate when funding was guaranteed for only a matter of months.

"As an intelligent transportation systems (ITS) solutions provider, we are pleased that MAP-21 includes special promotion of ITS and the expanded use of technology.  The bill ensures ITS technologies are eligible for funding in every major formula program and that the Department of Transportation will establish a performance management process to improve accountability around transportation spending.  Additionally, the bill supports technology introduction and advancement through two means - the restoration of the ITS research program, with funding of $100 million per year; and the creation of the Technology and Innovation Deployment program to accelerate the adoption of new transportation technologies, with funding of $63 million per year," continued Aubrey.

About Image Sensing
Image Sensing Systems, Inc. is a provider of software-based detection solutions for the Intelligent Transportation Systems (ITS) sector and adjacent markets including security, police and parking. We have sold more than 125,000 units of our industry leading Autoscope® machine-vision, RTMS® radar and CitySync automatic number plate recognition (ANPR) products in over 60 countries worldwide. This depth of our experience coupled with the breadth of our product portfolio uniquely positions us to provide powerful hybrid technology solutions and to exploit the convergence of the traffic, security and environmental management markets. We are headquartered in St. Paul, Minnesota. Visit us on the web at imagesensing.com.

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; the mix of and margins on the products we sell; unanticipated delays, costs and expenses inherent in the development and marketing of new products and services, including ANPR products; adverse weather conditions in our markets; the impact of governmental laws and regulations; increased international presence; our success in integrating acquisitions; 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 reports and other documents filed with the Securities and Exchange Commission, including its Annual Report on Form 10-K for the year ended December 31, 2011 filed in March 2012.

SOURCE Image Sensing Systems, Inc.