INTEGRATED SECURITY REPORTS SALES UP 9% IN 2nd FISCAL QUARTER

IRVING, Texas

Integrated Security Systems Inc. announces sales for the second quarter of fiscal 2001, ended Dec. 31, were up 9 percent to $1.3 million from $1.2 million in the previous quarter due to an increase in sales at the B&B Electromatic Inc. subsidiary of $200,000. This increase, however, was offset by a decrease in sales of $100,000 at the company’s Intelli-Site Inc. subsidiary due to a large end-user system installation project in the previous quarter.

“The Company is encouraged about the progress in the second quarter of fiscal 2001,” says C.A. Rundell Jr., chairman and CEO. “Specifically, the addition of Lars H. Halverson as president of our Intelli-Site subsidiary, who possesses more than 20 years of experience within the commercial security market, brings a great opportunity to the company for future growth of its software product sales.”

Integrated Security Systems is a high technology company that designs, develops and markets security software to the commercial, industrial and governmental marketplaces. In addition, it designs, manufactures and distributes automatic gates for highway railroad crossings including FHWA-accepted safety barrier gates that are designed to prevent vehicular intrusion onto railroad crossings.

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