Innovative Solutions and Support (ISSC) 8-K Regulation FD Disclosure

Exhibit 99.1

Press Release

Innovative Solutions & Support, Inc. Announces Q2 results of: 120% increase in EPS, 103% increase in net income and a 53% increase in sales.

Exton, PA.–(BUSINESS WIRE)–April 29, 2004–Innovative Solutions & Support, Inc. (NASDAQ:ISSC-news) today announced the following results for the 2^nd quarter and year to date periods ended March 31, 2004:

Q2 FY 2004
•	Sales	up 53% to a record $10.9 million.
•	Net income	up 103% to $2.6 million.
•	EPS	up 120% to $0.22
•	Released Backlog	up 17% to $27 million ($44 total)
First Half FY2004
•	Sales	up 68% to $19.4 million.
•	Net Income	up 180% to $4.2 million.
•	EPS	up 192% to $0.35.

Please refer to the accompanying schedules highlighting our Statement of Operations and Balance Sheet.

A Company spokesman commented: “The demand for our RVSM equipment has materialized as anticipated and we expect it to continue into the foreseeable future, supported by replacement of obsolete and troublesome equipment. The increase in demand was planned for and is not straining our resources. Our new facility that we occupied two years ago has enabled us to comfortably meet this increase in demand. Our state-of–the-art Engineering and Manufacturing Campus will accommodate a four-fold increase in sales volume. We are seeing a significant increase in non-RVSM related equipment as well.”

At March 31, 2004 the Company’s backlog of released business reached a quarter-end record $27.0 million. This reflects a 17% increase from the March 31, 2003 backlog of $23.1 million. In addition the Company has an additional $17 million in follow-on options for release in subsequent periods that has not yet been recognized in firm backlog.

Along with our sales increase, the company has increased its investment in Product Development by 77%. This investment assures that new Flat Panel and Air Data Systems will be coming to market at the end of calendar 2004.

The company will host a conference call today, April 29, 2004 at 10:00 am local time to discuss these results. Please call in to participate at (888) 792-8459. Also, our web site will carry the conference call live and have it available for subsequent listening.

Headquartered in Exton, PA. Innovative Solutions & Support, Inc. (www.innovative-ss.com) designs, manufactures and markets flight information computers, flat panel displays and advanced monitoring systems that measure and display critical flight information. This includes data relative to aircraft separation (RVSM, Reduced Vertical Separation Minimum), airspeed and altitude as well as engine and fuel measurements.

Certain matters discussed in this news release, including operating and financial results for future periods, are forward-looking statements that are subject to risks and uncertainties that could cause actual results to differ materially, either better or worse, from those discussed including other risks and uncertainties reflected in the Company’s prospectus and Form 10-K annual report on file with the SEC.

Contact Mr. James Reilly at (610) 646-9800

Innovative Solutions and Support, Inc.
Statement of Operations

		Three months ended March 31,						Six months ended March 31,
		2003			2004			2003			2004
Revenues	$	7,122,425		$	10,895,287		$	11,545,220		$	19,418,623
Cost of Sales		2,964,740			3,662,841			5,007,738			7,144,252
Gross profit		4,157,685			7,232,446			6,537,482			12,274,371
Research and development		838,586			1,488,893			1,765,888			2,498,169
Selling, general and administrative		1,478,191			1,869,484			2,732,333			3,510,103
Operating income		1,840,908			3,874,069			2,039,261			6,266,099
Interest income		146,314			117,204			329,242			229,875
Interest expense		(31,441	)		(31,148	)		(68,590	)		(63,003	)
Income before income taxes		1,955,781			3,960,125			2,299,913			6,432,971
Income tax expense		684,523			1,386,044			804,969			2,251,540
Net Income	$	1,271,258		$	2,574,081		$	1,494,944		$	4,181,431
Net Income per Common Share
Basic	$	0.10		$	0.22		$	0.12		$	0.36
Diluted	$	0.10		$	0.22		$	0.12		$	0.35
Weighted Average Shares Outstanding
Basic		12,630,220			11,513,478			12,667,281			11,462,771
Diluted		12,837,461			11,862,085			12,887,832			11,819,584

Innovative Solutions and Support, Inc.
Balance Sheet

		Actual September 30, 2003			Actual March 31, 2004
ASSETS
CURRENT ASSETS:
Cash and cash equivalents	$	48,789,744		$	53,069,748
Accounts receivable		6,955,207			6,633,766
Inventories		2,840,648			4,062,529
Deferred income taxes		673,134			673,134
Prepaid expenses		660,430			642,512
Total current assets		59,919,163			65,081,689
Property and equipment, net		9,548,491			9,707,505
Other assets		408,971			143,114
TOTAL ASSETS	$	69,876,625		$	74,932,308
LIABILITIES AND SHAREHOLDERS' EQUITY
CURRENT LIABILITIES:
Current portion of note payable	$	100,000		$	100,000
Current portion of capitalized lease obligation	$	-		$	7,257
Accounts payable		578,306			1,101,914
Accrued expenses		3,146,409			2,856,652
Deferred revenue		98,036			182,848
Total current liabilities		3,922,751			4,248,671
Note payable		4,235,000			4,235,000
Capitalized lease obligation		—			24,348
Deferred revenue		332,407			297,170
Deferred income taxes		328,177			320,089
SHAREHOLDERS' EQUITY:
Common stock		13,081			13,245
Additional paid-in capital		46,248,224			46,815,369
Retained earnings		25,410,742			29,592,173
Treasury stock		(10,613,757	)		(10,613,757	)
Total shareholders' equity		61,058,290			65,807,030
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY	$	69,876,625		$	74,932,308