Universal Security Instruments (UUU) Reports Fourth-Quarter and Year-End Results

OWINGS MILLS, Md., June 23 /PRNewswire-FirstCall/ — Universal Security Instruments, Inc. (NYSE Amex: UUU) today announced results for its fourth quarter and fiscal year ended March 31, 2010.

Universal reported fourth quarter net income of $468,223, or $0.20 per basic and diluted share, on sales of $6,301,918.  This compares to net income of $78,150, or $0.03 per basic and diluted share, on sales of $5,928,367 for the comparable period of the previous year.  Included in last year’s results was income from discontinued operations of $41,767.

For the 12 months ended March 31, 2010, sales were $26,439,118 versus $26,097,596 for the same period last year.  The Company reported net earnings of $2,268,048 or $0.95 per basic and diluted share versus net income of $4,865,357 or $1.97 per basic and $1.96 per diluted share for the same period last year.  Included in the March 31, 2009 results was a gain of $3,423,021 from discontinued operations.  The Company’s book value at March 31, 2010 has increased to $10.96 per share versus $9.95 per share at March 31, 2009.

“We are very pleased with the Company’s performance during the past fiscal year, particularly in light of the challenges the economy has created. Included in our results is approximately $500,000 of research and development expenses, which we expended for new product development, and we expect to spend another $400,000-$600,000 in this fiscal year to complete the development and testing of our new product line,” said Harvey Grossblatt, Chairman and CEO of Universal.

Universal previewed approximately 25 new products in May at the International Hardware Show in Las Vegas and received very positive feedback from our customers. Initial deliveries of several of these products should begin in the September time frame.

UNIVERSAL SECURITY INSTRUMENTS, INC. is a U.S.-based manufacturer (through its Hong Kong Joint Venture) and distributor of safety and security devices. Founded in 1969, the Company has a 41 year heritage of developing innovative and easy-to-install products, including smoke, fire and carbon monoxide alarms. For more information on Universal Security Instruments, visit our website at http://www.universalsecurity.com/.

“Safe Harbor” Statement under the Private Securities Litigation Reform Act of 1995: Certain matters discussed in this news release may constitute forward-looking statements within the meaning of the federal securities laws that inherently include certain risks and uncertainties.  Actual results could differ materially from those projected in or contemplated by the forward-looking statements due to a number of factors, including, among other items, our and our Hong Kong Joint Venture’s respective ability to maintain operating profitability, currency fluctuations, the impact of current and future laws and governmental regulations affecting us and our Hong Kong Joint Venture and other factors which may be identified from time to time in our Securities and Exchange Commission filings and other public announcements.  We do not undertake and specifically disclaim any obligation to update any forward-looking statements to reflect occurrence of anticipated or unanticipated events or circumstances after the date of such statements.  We will revise our outlook from time to time and frequently will not disclose such revisions publicly.