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FEDERAL SIGNAL ANNOUNCES A 3-FOR-2 STOCK SPLIT AND 17 PERCENT CASH DIVIDEND INCREASE

 FEDERAL SIGNAL ANNOUNCES A 3-FOR-2 STOCK SPLIT AND
 17 PERCENT CASH DIVIDEND INCREASE
 OAK BROOK, Ill., Jan. 30 /PRNewswire/ -- Federal Signal Corp. (NYSE: FSS) announced that its board of directors declared a 3-for-2 split in the company's common stock, subject to approval by shareholders of sufficient additional authorized shares at the March 19, 1992, annual meeting. The board also declared the regular first quarter cash dividend for 1992 of 15.75 cents, an increase of 17 percent, over the previous quarterly rate of 13.5 cents per share. The cash dividend will be paid March 3, 1992, to holders of record at the close of business on Feb. 14, 1992. The quarterly dividend represents the 176th consecutive quarterly cash dividend paid to shareholders of the company.
 Federal Signal does not currently have sufficient additional authorized but unissued common stock to effectuate the 3-for-2 stock split so the directors also approved an amendment of the company's Certificate of Incorporation to increase the number of authorized common stock from 30,000,000 to 90,000,000 shares. This amendment will be submitted for shareholder approval at the March 19, 1992, annual meeting. These additional shares would be used for the 1992 3-for-2 stock split and for future stock dividends, splits, acquisitions and other corporate purposes. If the shareholders approve the additional authorized shares, the 1992 3-for-2 stock split will then become effective. This would be the third year in a row that Federal Signal has had a 3-for-2 stock split. These splits followed 10 percent stock dividends declared in 1989 and 1988.
 Joseph J. Ross, chairman, president and chief executive officer, stated, "A shareholder who purchased 100 shares of Federal Signal stock five years ago would have received $80 in cash dividends that first year. Assuming that the 1992 3-for-2 stock split becomes effective, that same shareholder would hold 406 shares and receive $170.52 of cash dividends, on an annualized basis, because of the five consecutive years of increases in cash dividends and stock splits and dividends. In addition, the company's stock price has increased about 366 percent over this five-year period from $7.30, adjusted for stock distributions, to $34.00 per share today. This performance is principally the result of Federal Signal's profitable growth over the years and we look forward to continuing that growth in 1992 and the future."
 Pending shareholder approval of the Certificate amendment, the 3-for-2 split would be made in the form of a 50 percent stock distribution by issuing one additional share for every two shares of common stock issued and outstanding at the close of business on March 27, 1992, the record date. A cash payment would be made equal to any fractional share interest. Brokers, nominees and custodians would have from March 27, 1992, through April 3, 1992, to notify the disbursement agent, Harris Trust and Savings Bank of Chicago, of their requirements for full and fractional shares for each of their customers. The additional shares would be distributed to shareholders on April 10, 1992.
 Federal Signal Corp. is a manufacturer and worldwide supplier of public safety, signaling and communications equipment (Signal Products), fire trucks, rescues and ambulances (Emergency One, Superior and Frontline), street sweeping vehicles (Elgin Sweeper and Ravo International), parking control equipment (Federal APD), custom on-premise signage (Federal Sign), carbide cutting tools (Manchester Tool and Bassett Rotary Tool), and precision punches and related die components (Dayton Progress, Jamestown Perforators and Container Tooling).
 -0- 1/30/92
 /CONTACT: Robert W. Racic of Federal Signal, 708-954-2027/
 (FSS) CO: Federal Signal Corp. ST: Illinois IN: SU: DIV


GK -- NY083 -- 5310 01/30/92 13:56 EST
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Publication:PR Newswire
Date:Jan 30, 1992
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