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Federal Signal Presents at Piper Jaffray Conference

11 June 1998

Federal Signal Presents at Piper Jaffray Conference

    MINNEAPOLIS, June 11 -- Federal Signal Corporation
manufactures and markets selected products and services in diverse
worldwide market niches.  It occupies leadership positions in these
diversified niche markets in the U.S.  The company is managed on a
decentralized basis and comprises four operating groups:

    -- The Vehicle Group (54% of sales) consists of fire apparatus, airport
       rescue/firefighting vehicles, aerial access platforms, street sweepers,
       industrial vacuum equipment and municipal combination catch basin/sewer
       cleaner vehicles.  It has nearly 30% of the North American fire
       apparatus market, owns the largest fire truck manufacturer in Canada
       and is #1 in the world in fire trucks.
    -- The Safety Products Group (24% of sales) has the broadest product line
       and the largest distribution network for warning, signaling, hazardous
       area lighting and communication products for municipalities and
       industrial users; it commands #1 share positions in both the domestic
       municipal market and the domestic industrial market.
    -- The Tool Group (15% of sales) makes perishable die components,
       precision parts, high-precision cutting and grooving tools and
       superhard cutting tools.  It is the largest punch manufacturer with the
       largest distribution network in the world.
    -- The Sign Group (7% of sales) manufactures and installs custom high-end
       signs for many business sectors, including financial, food service,
       lodging and retail facilities.

    Investment Merits
    Strong market positions, proven growth strategies, a strong financial
position and ambitious financial objectives support a favorable outlook for
Federal Signal.  Federal Signal's proven growth strategies have resulted in
average growth in earnings per share of 16% over the 10-year period ending
December 1997.  On an operating basis, 1997 EPS was even with 1996.  A year of
record earnings is targeted for 1998.
    Federal Signal's most important financial goal is to provide shareholders
with superior long-term financial returns.  For the last ten-year period,
Federal Signal has exceeded the S&P Industrials benchmark by a substantial
margin.  Looking ahead, the company continues to emphasize growth as its top
priority in achieving superior long-term financial returns.  It remains
committed to an earnings per share long-term growth goal of 15% per year on
average.  Growth in the coming years is expected from new products, new market
niches, acquisitions and continued non-U.S. expansion.  Intermediate term
growth is expected to be enhanced by margin recovery and the elimination of
industry wide truck-chassis supply shortages in the important Vehicle Group.
    A strong balance sheet and cash flow underpins the company's strategies
for growth.  Federal Signal ended 1997 with a total debt to capitalization
ratio of 28% for its manufacturing operations.