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FEDERAL SIGNAL
Advancing security and well-being

REGENCY TOWERS, 1415W, 22ND ST, OAK BROOK, ILLINOIS 60523

FEDERAL SIGNAL ACQUIRES DIAMOND CONSULTING SERVICES

Accretive Acquisition Adds Detection and Classification Technology to Federal Signal’s Intelligent Transportation Systems Platform

OAK BROOK, Ill., December 10, 2009 – Federal Signal Corporation (NYSE: FSS), a leader in environmental, safety and transportation solutions, today announced it has acquired Diamond Consulting Services Ltd. (DCS), which specializes in highly accurate vehicle classification systems for tolling and other Intelligent Transportation Systems (ITS), for $14.6 million and deferred payments in future years of up to $3.2 million. The transaction will be immediately accretive to Federal Signal shareholders. The combination of DCS' technology with Federal Signal’s existing PIPS automated license plate recognition technology broadens Federal Signal’s product line of best-in-class technologies in ITS and increases the Company’s addressable market.

DCS' market leading automatic vehicle classification technology uses advanced proprietary software to detect vehicles in a variety of safety, tolling and data collection applications and is recognized worldwide by the Idris® brand. Idris technology classifies vehicles to the highest available accuracy and is the de-facto standard in the U.S. for axle-based Electronic Toll Collection, the process of collecting tolls without the use of toll booths or otherwise requiring vehicles to stop. Together with PIPS, it is also at the heart of the latest generation of tolling – All Electronic Toll Collection (AETC).

“This acquisition is an important step in our strategy of driving growth through our Public Safety Systems platform,” said William Osborne, Federal Signal's President and Chief Executive Officer. “DCS' differentiated expertise in road traffic software applications and axle recognition technology complements Federal Signal’s enforcement camera product. Our PIPS clients who also utilize DCS software recognize the compelling value of the combined offering, further differentiating our solutions from the competition. I have tremendous respect for Diamond Consulting's people, technology and business, and I welcome the talented DCS team to Federal Signal.”

“DCS has built a strong position in the traffic industry over the last 15 years, and has become an enabler in the evolution of tolling,” said Bob Lees, founder and Managing Director of Diamond Consulting Services. “This is a proud day for DCS and a testament to the hard work and dedication of our employees. We look forward to working with Federal Signal to deliver yet more innovative products to our existing and new customers whilst maintaining the high level of service they have come to expect from DCS.”

DCS will operate as part of the Public Safety Systems business unit of Federal Signal. Federal Signal recognises the important role DCS' ITPs have played in the success of Idris, and intends to continue to develop and strengthen those relationships. We envisage the backing of Federal Signal will strengthen the resources of DCS to enable further developments of Idris technology to be accelerated, and synergies between Idris and PIPS to be realised.

About Federal Signal
Federal Signal Corporation (NYSE: FSS) enhances the safety, security and well-being of communities and workplaces around the world. Founded in 1901, Federal Signal is a leading global designer and manufacturer of products and total solutions that serve municipal, governmental, industrial and institutional customers. Headquartered in Oak Brook, Ill., with manufacturing facilities worldwide, the Company operates three groups: Safety & Security Systems, Environmental Solutions & Fire Rescue.
For more information on Federal Signal, visit: www.federalsignal.com.

About Diamond Consulting Services
DCS specializes in Research, Development and Consultancy for the ITS industry. Over the last 15 years, DCS has proved to be a leader in the field of vehicle detection and classification. On this reputation, the company has built a significant business with its Idris Vehicle Detection Technology.  The patented Idris technology comprises automatic vehicle detection and classification software, used worldwide in applications such as incident detection and multi-lane Open Road Tolling schemes. From a basic in-ground loop detection system, a powerful axle recognition and classification technology has been developed which produces class accuracy levels greater than 99.5% - unmatched by any other single sensor solution. DCS was advised on this cross border sale by Cobalt Corporate Finance, the Technology, Media and Telecom specialists.

Forward-Looking Language
This release contains unaudited financial information and various forward-looking statements as of the date hereof and we undertake no obligation to update these forward-looking statements regardless of new developments or otherwise. Statements in this release that are not historical are forward-looking statements. Such statements are subject to various risks and uncertainties that could cause actual results to vary materially from those stated. Such risks and uncertainties include but are not limited to: economic conditions in various regions, product and price competition, supplier and raw material prices, foreign currency exchange rate changes, interest rate changes, increased legal expenses and litigation results, legal and regulatory developments and other risks and uncertainties described in filings with the Securities and Exchange Commission.
 
Contact:
Leo Mahon
Vice President of Strategy, Business Development and Investor Relations
Federal Signal Corporation
630-954-2000
lmahon@federalsignal.com