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Federal Signal Acquires VESystems

OAK BROOK, Ill., March 3 /PRNewswire-FirstCall/ -- Federal Signal Corporation (NYSE: FSS), a leader in environmental, safety and transportation solutions, today announced it has acquired VESystems, LLC, a leader in back-office and customer management systems and services for the electronic toll collection industry, and its affiliates, for $33 million, including approximately $8.4 million in stock. The cash portion of the consideration will be financed through existing liquidity.

VESystems, established in 2000, designs, develops and deploys advanced, cost-effective and easy-to-use software applications and customer management systems and services for the electronic toll collection industry. VESystems continually strives for technological innovation and operational excellence to help clients achieve economies and maximize returns with products and services featuring unparalleled speed, intelligent search capabilities, on-line internet and telephone system integration, dynamic reporting functions, ease of use and open system architecture on modern platforms. VESystems' back office HOT Lane Congestion Pricing module for the Minnesota Department of Transportation I-394 project was an industry first. In Texas, VESystems implemented the industry's first operational video tolling solution for the Texas Department of Transportation.

VESystems management team, led by Founder and Chief Executive Officer, Manfred Rietsch, has more than 50 years of combined experience in electronic toll collection program management, systems development/integration, database management, customer service, violation processing and toll evasion collections.

VESystems represents a key component in Federal Signal's unique Intelligent Transport Systems ("ITS") platform. The combination of VESystems' complete system operations with Sirit's Radio Frequency Identification ("RFID") applications linked with Federal Signal's detection and classification technology (acquired in the December 2009 purchase of Diamond Consulting Services) and existing PIPS automated license plate recognition ("ALPR") technology, immediately transforms Federal Signal into a leader in the ITS market. As previously announced, Federal Signal expects to complete the acquisition of Sirit on or about March 5, 2010, subject to the satisfaction of certain closing conditions.

"We are excited about the acquisition of VESystems, which expands our addressable market and advances our stated strategy of driving growth through our Public Safety Systems platform," said William Osborne, Federal Signal's President and Chief Executive Officer. "VESystems' expertise and leadership in electronic toll collection software and complete system operations is highly respected in the industry and already works well alongside the PIPS, Diamond and Sirit technology and service offerings. We are confident that with this portfolio of best-in-breed technologies and services, Federal Signal will be well-positioned to offer customers a comprehensive ITS solution, capitalize on the robust global market trends and deliver enhanced value to our stockholders."

"On behalf of our Board of Directors and management team, I am delighted to welcome VESystems and its experienced talented team, led by Manfred Rietsch, to Federal Signal. The strength and depth of VESystems' team will be a key asset for our company," added Mr. Osborne.

"This is a proud day for VESystems," said Manfred Rietsch, Founder and Chief Executive Officer of VESystems. "We are confident that Federal Signal is the right fit for VESystems and we look forward to rapidly integrating our operations and capitalizing on the power of this combination, while maintaining the high level of service our customers have come to expect from VESystems."

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, Federal Signal operates three groups: Safety and Security Systems, Environmental Solutions and Fire Rescue. For more information on Federal Signal, visit: http://www.federalsignal.com.

About VESystems

VESystems, established in 2000, designs, develops and deploys advanced, cost-effective and easy-to-use software applications and customer management systems and services for the electronic toll collection industry. VESystems continually strives for technological innovation and operational excellence to help clients achieve economies and maximize returns with products and services featuring unparalleled speed, intelligent search capabilities, on-line internet and telephone system integration, dynamic reporting functions, ease of use and open system architecture on modern platforms. VESystems' back office HOT Lane Congestion Pricing module for the Minnesota Department of Transportation I-394 project was an industry first. In Texas, VESystems implemented the industry's first operational video tolling solution for the Texas Department of Transportation. For more information on VESystems, visit: http://www.vesllc.com.

Forward-Looking Language

This release contains 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.

    Contacts:

    For Federal Signal:
    William Barker
    Senior Vice President and Chief Financial Officer
    1-630-954-2000
    wbarker@federalsignal.com

    For VESystems:
    Manfred Rietsch
    Chief Executive Officer
    1-949-450-0850
    manfredrietsch@vesllc.com

SOURCE Federal Signal Corporation