EXHIBIT 99.1

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

FOR IMMEDIATE RELEASE

Insignia Systems, Inc. Reports Second Quarter Loss of $(508,000)
on Second Quarter Net Sales of $5,396,000

MINNEAPOLIS – July 20, 2005 – Insignia Systems, Inc. (Nasdaq: ISIG) today reported net sales of $5,396,000 for the second quarter ended June 30, 2005, an increase of 6.4%, compared to net sales of $5,072,000 for the second quarter of 2004. The net loss for the second quarter of 2005 was $(508,000) or $(0.03) per share, compared to $(2,144,000), or $(0.17) per share, for the second quarter of 2004. Insignia Point-of-Purchase Services^®(POPS) revenues for the second quarter were $4,641,000, an increase of 14.5%, compared to second quarter 2004 POPS revenues of $4,054,000.

For the six months ended June 30, 2005, net sales were $10,368,000, an increase of 6.0%, compared to net sales of $9,778,000 for the first half of 2004. The net loss for the first half of 2005 was $(1,565,000) or $(0.10) per share, compared to $(3,601,000), or $(0.29) per share for the same period of 2004. Insignia POPS revenues for the first six months of 2005 were $8,778,000, an increase of 13.8%, compared to the first six months of 2004 POPS revenues of $7,713,000.

CEO Scott Drill commented, “We continue to be encouraged that for the third quarter in a row we have achieved a favorable year-to-year quarterly comparison. We are optimistic this trend will continue in that we have POPS customer orders for approximately $4,380,000 for the current quarter with six weeks of selling time left. POPS revenue in the third quarter of 2004 was $4,524,000.”

Drill went on to state, “Our cash position at quarter end was $2,770,000, a decrease of $287,000 versus $3,057,000 at the end of the first quarter. We expect cash to be at slightly over $2,000,000 at the end of the third quarter. Legal expense in the second quarter was $270,000. Discovery continues to be on hold in both New York and Minnesota pending rulings by the judges on key motions in both cases.”

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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

July 20, 2005 Insignia Systems, Inc. Reports Second Quarter Loss Page 2

Conference Call
The Company will host a conference call today, July 20, at 4:00 p.m. Central Time. To access the live call, dial 800-930-1344. The conference code is 1986544. 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 July 29, 2005. To access the replay, dial 888-203-1112 and reference the passcode 1986544.

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 12,000 chain retail supermarkets and drug stores, including A&P, Kroger, Pathmark, Safeway and Rite Aid. Through the nationwide POPS network, over 190 major consumer goods manufacturers, including General Mills, Hormel Foods, 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.

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, 2004 and SEC Form 10-Q for the quarter ended March 31, 2005. 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

July 20, 2005 Insignia Systems, Inc. Reports Second Quarter Loss Page 3

Insignia Systems, Inc.
STATEMENTS OF OPERATIONS
(Unaudited)

	Three Months Ended June 30,						Six Months Ended June 30,
	2005			2004			2005			2004
Net Sales	$	5,396,000		$	5,072,000		$	10,368,000		$	9,778,000
Cost of Sales		3,288,000			3,190,000			6,528,000			6,536,000
Gross Profit		2,108,000			1,882,000			3,840,000			3,242,000
Operating Expenses:
Selling		1,438,000			1,501,000			2,878,000			3,013,000
Marketing		332,000			272,000			665,000			540,000
General & administrative		842,000			1,262,000			1,859,000			2,313,000
Impairment of goodwill		—			960,000			—			960,000
Operating Loss		(504,000	)		(2,113,000	)		(1,562,000	)		(3,584,000	)
Other Income (Expense)		(4,000	)		(31,000	)		(3,000	)		(17,000	)
Net Loss	$	(508,000	)	$	(2,144,000	)	$	(1,565,000	)	$	(3,601,000	)
Net Loss Per Share
Basic and diluted	$	(0.03	)	$	(0.17	)	$	(0.10	)	$	(0.29	)
Shares used in calculation of
net loss per share:
Basic and diluted		15,002,000			12,476,000			15,002,000			12,474,000

SELECTED BALANCE SHEET DATA

	June 30, 2005		December 31, 2004
Cash and cash equivalents	$	2,770,000	$	6,156,000
Working capital		3,343,000		4,813,000
Total assets		7,780,000		9,921,000
Total liabilities		3,960,000		4,588,000
Shareholders' equity		3,820,000		5,333,000

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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