Federal Signal Corporation Announces Third Quarter Earnings of $.31 per share from Continuing Operations

Federal Signal Corporation (NYSE: FSS), a leader in
advancing security and well-being, today reported net income from continuing operations of $14.8
million, or $.31 per share, for the third quarter of 2008 on net sales of $227 million.
0000950137-06-011689_C09599C0959900.GIFFor the same
period of 2007, the Company earned $10.2 million from continuing operations, or $.21 per share,
on net sales of $229 million. The year-over-year increase in net income from continuing operations
was due to an $8.2 million benefit arising from the use of tax loss carry forwards on the
sale/leaseback of two production facilities. Partly offsetting this item was an adverse $3.4 million
after-tax charge to settle a dispute and write off assets associated with a contract to install a
parking system at the Dallas/Ft. Worth airport, and the absence of a $1.2 million after-tax favorable
excise tax settlement received in the prior year.

Safety and Security Systems

Orders declined 2% from the prior year period to $87 million. Non-U.S. orders increased
17% as a result of improvements from all business units including the addition of orders for
PIPS automated license plate recognition (ALPR) systems, which was acquired in August
of 2007. US orders were down 14% from the prior year due to decreased demand for
police lightbars and sirens, outdoor warning devices and parking and revenue control
Net sales declined 4% from the third quarter of 2007 due to the wind-down of deliveries
against the large parking systems projects, reduced demand for U.S. police products and
disruptions in shipments from the Houston-based hazardous lighting plant associated with
the impact of Hurricane Ike. Offsetting the decline somewhat were increased sales of ALPR
Operating income of $8.3 million was down $4.4 million from the prior year due to the
settlement and asset write-off of the DFW contract of $6.0M and the $.4 million impact of
Hurricane Ike which was somewhat offset by increased sales of higher margin ALPR
cameras. Excluding the impact of the DFW settlement, Q3 operating margins averaged
Federal Signal Corporation
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