Insignia Systems, Inc. Federal Ruling

Insignia Systems, Inc. (NASDAQ:ISIG) announced a favorable ruling regarding the agreement between Insignia and News America Marketing In-Store, Inc. ("NAM”). On August 25, 2011 the Honorable Arthur J. Boylan, United States Chief Magistrate Judge, issued an Order defining and clarifying the business operations between Insignia and NAM relative to the Insignia’s exclusive placement of Specified Signs with Price throughout NAM’s Price Pop Guaranteed Network. This Order facilitates and streamlines the operational procedures and will help Insignia to increase its sign program for its Consumer Packaged Goods customers. Insignia looks forward to working collaboratively with NAM in a positive and mutually beneficial business relationship.

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 provides at-shelf advertising products in over 13,000 chain retail supermarkets, over 1,800 mass merchants and over 6,000 dollar stores. Through the nationwide POPS network, over 200 major consumer goods manufacturers, including General Mills, Kellogg Company, Kraft, Nestlé, Ocean Spray, Reckitt Benckiser, Schwan’s Bakery and Tyson Foods, have taken their brand messages to the point-of-purchase. For additional information, contact (888) 474-7677, or visit the Insignia website at www.insigniasystems.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, 2010 and other recent filings with the Securities and Exchange Commission. 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.