Exhibit 99.1

       Tel-Instrument Electronics Corp Announces ITATS Protest Dismissal

    CARLSTADT, N.J.--(BUSINESS WIRE)--Jan. 24, 2007--Tel-Instrument
Electronics Corp (AMEX: TIK) has been notified by the U.S. Navy that
the protests filed with the Government Accountability Office (GAO)
relating to the award of the Intermediate Level TACAN Test Set (ITATS)
contract to the Company have been dismissed. As a result, Tel and its
subcontractors, will resume work immediately on this important
product.

    The ITATS award value for the firm-fixed price;
indefinite-delivery/indefinite-quantity is estimated at $12,700,000,
including future deliverables of up to 180 units. The Company has
received the first delivery order valued at $4,443,816 for systems
engineering, fabrication, testing, and associated logistics costs for
six First Article Test units.

    Jeff O'Hara, the Company's Chief Operating Officer, said,
"Tel-Instrument is proud that the U.S. Navy has selected the Tel
solution for its Intermediate Level TACAN test requirements. The ITATS
design combines advanced digital technology with state of the art
automated testing capabilities. This contract, when taken in
conjunction with the current CRAFT contract (AN/USM-708), should
represent a solid base for the future profitable growth of the
Company."

    This press release includes statements that are not historical in
nature and may be characterized as "forward-looking statements,"
including those related to future financial and operating results,
benefits, and synergies of the combined companies, statements
concerning the Company's outlook, pricing trends, and forces within
the industry, the completion dates of capital projects, expected sales
growth, cost reduction strategies, and their results, long-term goals
of the Company and other statements of expectations, beliefs, future
plans and strategies, anticipated events or trends, and similar
expressions concerning matters that are not historical facts. All
predictions as to future results contain a measure of uncertainty and,
accordingly, actual results could differ materially. Among the factors
which could cause a difference are: changes in the general economy;
changes in demand for the Company's products or in the cost and
availability of its raw materials; the actions of its competitors; the
success of our customers; technological change; changes in employee
relations; government regulations; litigation, including its inherent
uncertainty; difficulties in plant operations and materials;
transportation, environmental matters; and other unforeseen
circumstances. A number of these factors are discussed in the
Company's previous filings with the Securities and Exchange
Commission. The Company disclaims any intention or obligation to
update any forward-looking statements as a result of developments
occurring after the date of this press release.

    Tel-Instrument is a leading designer and manufacturer of avionics
test and measurement solutions for the global commercial air
transport, general aviation, and government/military aerospace and
defense markets. Tel-Instrument provides instruments to test, measure,
calibrate, and repair a wide range of airborne navigation and
communication equipment. For further information please visit our
website at www.telinstrument.com.

    Innerspace Technology, Inc. (www.innerspacetechnology.com), a
division of the Company, designs, manufactures and distributes a
variety of shipboard and underwater instruments to support
hydrographers, oceanographers, researchers, engineers, geophysicists,
and surveyors worldwide.

    The Company's stock is traded in the American Stock Exchange under
the symbol TIK.

    CONTACT: For Tel-Instrument Electronics
             Mr. Joseph P. Macaluso, 201-933-1600