Innovative Solutions & Support, Inc. Announces Special Cash Dividend

  Innovative Solutions & Support, Inc. Announces Special Cash Dividend

Business Wire

EXTON, Pa. -- December 07, 2012

Innovative Solutions & Support, Inc. (NASDAQ:ISSC) (the “Company”) today
announced that its Board of Directors has declared a special cash dividend in
the amount of $1.50 per share. The dividend will be payable on or about
December 27, 2012 to shareholders of record as of the close of business on
December 17, 2012. The aggregate amount of the payment to be made in
connection with the dividend will be approximately $24.9 million.

Geoffrey S.M. Hedrick, the Company’s Chief Executive Officer commented: “We
are pleased to return approximately $24.9 million to our shareholders through
this special dividend. The Company has a strong cash position that the Company
believes will be sufficient to fund the day to day operations of the business.
In addition, absent legislative action, there may be potential significant
increases in tax rates on dividends beginning next year. As a result, the
Board of Directors, taking into consideration these potential significant tax
rate increases, has declared a special dividend in order to return value to
our shareholders.”

About Innovative Solutions

Headquartered in Exton, Pa.,Innovative Solutions& Support,Inc.
(www.innovative-ss.com) is a systems integrator that designs and manufactures
flight guidance and cockpit display systems for Original Equipment
Manufacturers (OEM’s) and retrofit applications. The company supplies
integrated Flight Management Systems (FMS) and advanced GPS receivers for
precision low carbon footprint navigation.

Certain matters contained herein that are not descriptions of historical facts
are “forward-looking” (as such term is defined in the Private Securities
Litigation Reform Act of 1995). Because such statements include risks and
uncertainties, actual results may differ materially from those expressed or
implied by such forward-looking statements. Factors that could cause results
to differ materially from those expressed or implied by such forward-looking
statements include, but are not limited to, those discussed in filings made by
the Company with the Securities and Exchange Commission. Many of the factors
that will determine the Company’s future results are beyond the ability of
management to control or predict. Readers should not place undue reliance on
forward-looking statements, which reflects management’s views only as of the
date hereof. The Company undertakes no obligation to revise or update any
forward-looking statements, or to make any other forward-looking statements,
whether as a result of new information, future events or otherwise.

Contact:

Innovative Solutions & Support, Inc.
Ron Albrecht, Chief Financial Officer
610-646-0350