Quixote Corporation Forms Joint Venture for Pavement Inspection and Management.

CHICAGO--(BUSINESS WIRE)--November 4, 1998--Quixote Corporation (Nasdaq:QUIX) announced today that its wholly-owned subsidiary, the TranSafe Corporation, has entered into a joint venture agreement to market pavement inspection and management systems and services and other high technology products in the United States. The joint venture is with G.I.E. Technologies Inc., based in Montreal, Canada, and eight independent distributors of Quixote's highway products. TranSafe and G.I.E. Technologies are each acquiring an 18% interest in the joint venture called Transportation Management Technologies L.L.C. with the remaining interest shared equally by the eight distributors. Additional terms were not disclosed. The venture is expected to be modestly accretive to Quixote earnings in its first full year of operations.

Transportation Management Technologies has been formed as a service organization to measure and analyze the surface conditions of roads and airport runways. This service is based on a proprietary refined laser principle licensed from the Canadian National Research Council called the BIRIS principle which uses laser beams for telemetric and photometric measurements to collect information on road surface conditions. This system employs the most advanced technology to measure pavement surface deterioration accurately and efficiently, and when combined with proper analysis and timely maintenance, becomes an effective cost-saving tool for road management at all levels. Built into a special vehicle, the laser system can collect data on pavement conditions at highway speeds of 50 miles per hour. Sophisticated software developed by G.I.E. Technologies permits off- line processing of information that can be completed in a few days as opposed to the many weeks needed using more traditional methods.

Philip E. Rollhaus, Jr., Quixote's Chairman and Chief Executive Officer, commented: "Federal funding for U.S. highways requires data accumulation of road conditions every two years to maintain eligibility for federal funding. The technology developed and provided by G.I.E. Technologies will allow Transportation Management Technologies to provide the highest quality and most complete roadway surface condition data in the United States. The joint venture will have the exclusive right to use and market this technology which is the most advanced technology capable of measuring parameters affecting road surface conditions at highway speeds of 50 miles per hour. We believe there is substantial opportunity for this technology to attract an increasingly larger piece of the market for road surface measurement as more states, municipalities and counties outsource these data collection requirements and as the benefits of this technology become more widely recognized."

Quixote Corporation, (www.quixotecorp.com), through its wholly- owned subsidiaries, Energy Absorption Systems, Inc. and the TranSafe Corporation, is the world's leading manufacturer of energy-absorbing highway crash cushions, truck-mounted impact attenuators, computerized highway advisory radio transmitting systems and other highway safety products and services.

Safe Harbor Statement under the Private Securities Litigation Reform Act of 1995: Except for historical information contained herein, the matters set forth in this news release are forward-looking statements. The forward-looking statements set forth above involve a number of risks and uncertainties that could cause actual results to differ materially from any such statement, including the risks and uncertainties discussed in the Company's Annual Report on Form 10-K for its fiscal year ended June 30, 1998, under the caption "Forward- Looking Statements" in Management's Discussion and Analysis of Financial Condition and Results of Operations, which discussion is incorporated herein by this reference.