1

We are advancing securityand well-being every day.

March 2007

This presentation contains various forward-looking statements as of the date hereof and the Company undertakes no obligation to update these statements regardless of new developments or otherwise. Statements in this presentation that are not historical are forward-looking statements. These risks and uncertainties, some of which are beyond the company’s control, include the cyclical nature of the company’s industrial and municipal markets, technological advances by competitors, the Company’s ability to improve its operating performance, risks associated with the execution of planned plant closures, increased warranty and product liability expenses, risks associated with supplier and other partner alliances, changes in cost competitiveness including those resulting from foreign currency movements, disruptions in the supply of parts or components from sole source suppliers and subcontractors, retention of key employees and general changes in the competitive environment.

March 2, 2007

Safe Harbor

2

About Federal Signal

• Key Statistics– 5,500 employees

– $1.2 billion in revenue

– Trades on NYSE as FSS

• Key Competitive Advantages– Product leadership

and brand recognition

– Well developeddistribution channels

– Broadest array ofmunicipal solutions

2006

Segment Revenues$1.2 billion

Customer Orders$1.2 billion

Federal Signal Today

• Strong balance sheet

• Improved EBITDA margins

• Innovative new productsand solutions

• Positioned in emergingsecurity and well-being space

EnvironmentalSolutions

33%Fire Rescue

32%

Tool10%

Safety & Security Systems25%

U.S. Municipal39%

U.S. Industrial/Commercial

25%

Non-U.S.36%

3

What Does Federal Signal Do?

• Design and manufacture a suite of products and integrated solutions, including:

– Safety, security and critical communications systems

– Parking revenue managementand security systems

– Arduous environmentlighting systems

– Mining safety systems– Fire rescue vehicles– Aerial devices– Street sweepers– Industrial vacuum trucks– Waterblasters– Hydro-excavators

and sewer cleaners– Die and mold tooling

Product Leadership Drives Our Business

• 100+ year historyof product leadership

• #1 or #2 in most markets

• Mission-critical products

• Trusted brands —proven performance

FS Codespear interoperable communications platforms

FS Legend Lightbar

FS E-ONE Typhoon

FS Vactor HXX Vacuum Excavator

4

Our Global Presence and Expertise

Our worldwide capability in security is unmatched.

Interoperable communicationsDetroit, Mich.

Tsunami warning systemsPudang, Indonesia

Parking systemsBeijing, China

Glycol recovery vehiclesSt. John’s, Newfoundland

Industrial securityQatar

Bronto aerial devicesMoscow, Russia

Command and control vehicleChicago, Ill.

Our Key Markets

Municipal

Industrial

Governmental

Airport

5

SweepersSewer cleaners

Vacuum trucksFire rescue vehicles

Outdoor Warning Systems

SweepersSewer cleanersENVIRONMENTENVIRONMENT

PoliceFire rescue vehicles

PoliceFire rescue vehiclesAmber

RECOVERRECOVER(From An Incident)(From An Incident)

Water blastersVacuum trucks

PoliceSewer cleanersPoliceParking systems

PROPERTYPROPERTY

Mine lightingPoliceOutdoor Warning SystemsIntegrated Warning Systems

Mine lightingSewer cleanersPoliceSweepersParking systems

PEOPLEPEOPLE

MAINTAINMAINTAIN(Safe Conditions)(Safe Conditions)

RESPONDRESPOND(To An Incident)(To An Incident)

PREVENTPREVENT(An Incident)(An Incident)

PRO

TEC

T

Foundation for a New Vision

Broadband Wireless Network

Community Video

Surveillance

Outdoor Warning

Walking Path Emergency Station

Water Meter Reader City

Name

SCADA

IL 129 5678

License PlateRecognition

PoliceParking Gate

Fire Truck

City Garage

SelecTone Command

SmokeHeatRate of RiseFireWaterSecurity

Alarm

Voice

EOC Dash Board

WarningToxic Plume

RadioTVCableSatelliteInternetIntranet

Internet Warning Profiler

Vactor

Municipality/ Residence

Industry/Business

Vehicular

Personnel/Citizen

Meteoro-logical

Smoke Detector w/ WiFi

CellPDAPager

Personal Warning

Toxic Plume

School House

Child Tracking

ElderMonitoring

TrafficLight

AlarmMonitoring V2

V

Municipality of the Future

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Federal SignalSmart Security Solutions

Sense Analyze

Command& Control

Algorithms& Software

SensorsCBNREMagnetic Field

Video/Thermal

ClimaticAlgorithms& Software

Prevent, Warn,Respond

Prevent, Warn,Respond

Recover,MaintainRecover,Maintain

Traditional Federal Signal ProductsTraditional Federal Signal Products

New Federal Signal SolutionsNew Federal Signal Solutions

What Customers Are Asking For…

• Ability to communicateacross jurisdictions

• Rapid access tomore information

• High-quality video and intelligent applications

• Ability to leverage existing investments in radiotechnology

7

Repositioning Underway

• Research indicates non-military security market growing at 8% per year worldwide

• Renaming some businesses to align with customer needs

• More sales will be into the public safety and security space

• Enhancing our customer-facing marketing efforts

• Expecting higher organic growth rates

Safety and Security Systems Group

Parking equipment distributors, directElectrical wholesalers, catalog houses, OEMs, direct

Police and truck equipment distributors, catalog houses, installers, OEMs, direct

Channels

Amano, Ascom, Scheidt & Bachman, SkiData, Whelen, MadahCom

Parking operators, airports, municipalities, shopping centers, universities, hospitals, hotels, nuclear plants, military bases

Gates, ticket dispensers, cash registers, card readers, software,all-hazard warning systems, interoperable communications systems

Public Safety and Transportation Systems

Industrial Communications,

Safety and Security

Mobile VehicularSystems

Whelen, Code 3, Ecco

Police and fire departments, ambulance services, DOTs,utilities, tow truck operators

Lightbars, beacons, sirens and speakers

Edwards/GE, Gaitronics/Hubbell,Crouse-Hinds/Cooper, Whelen

Industrial plants, petrochemical plants, ship/rig builders, coal mines, municipalities, nuclear plants, military bases

Beacons, horns, interoperable communications systems, mining and marine hazardous area lighting

Competitors

Products

Customers

8

Safety and Security Systems Group

Overview/Outlook

• Orders rose 18% in 2006

• Robust demand for police products and electrical products for arduous environments

• Customers seeking integrated systems for mission-critical situations

• Integration of Codespear

• Increasing R&D investmentSales ($M)Operating Margin (%)

Sales vs.Operating Margin

$305$277

$247

13.5%

16.3%*

13.5%

0

50

100

150

200

250

300

350

2004 2005 20060

4

8

12

16

20$ %

* 13.9% excluding gain on product-line sale

Fire Rescue Group

Dealer Network Direct SalesDealer Networkand Direct Sales

Dealer NetworkChannels

Oshkosh, Rosenbauer

Airports andMilitary Airbases

Apparatus designed for rapid attack and intervention for aircraft or airfield events

ARFFARFFApparatusApparatus

Aerial FireAerial FireApparatusApparatus

PumperPumperand Tankerand Tanker

Rescue and Rescue and Homeland SecurityHomeland Security

Pierce / LDV, SVI, ALF

Cities, Counties, States, Federal Government

Custom and commercial rescues for command/operation centers, bomb trucks, HazMat

Pierce, Rosenbauer, ALF

Cities, Counties,States, Refineries

Custom and commercial pumpers and tankers for municipal and industrial markets

ALF, Pierce, KMERosenbauer

Cities, Counties,States, Refineries

Aerial waterway, ladders, traditional and articulated devices

Competitors

Products

Customers

9

Fire Rescue Group

Overview/Outlook

• Robust demand for Brontos

• Enhanced Ez-ONE unveiled

• Improved gross margins

• 4Q06 margins at 3.5%

Sales vs.Operating Margin

Sales ($M)Operating Margin (%)

$371$361 $385

0

50

100

150

200

250

300

350

400

450

2004 2005 2006-7

-3

1

5

9

(6.6%)

0.6%

1.8%

$

%

FRG: Continuous Improvement Update

• Revenue up 4% year-over-year

• Build quality levels improvingand lead times reduced

• Reducing dealerfloor-planned inventory

• Improving margins driven by operational improvements

• Strengthening, enablingand expanding distribution

• Ez-ONE sales configurator fullyoperational and sales team trained

• Showing customers four innovativenew products at FDIC

10

Environmental Solutions Group

NLB, Gardner Denver,Woma, Hammelman

Super Products, GapVax, VacCon, Clean Earth

VacCon, Super Products, Clean Earth, Aquatech

Schwarze, Tymco, Allianz

Competitors

Direct

Industrial contractors, plants and rental houses

Vacuum loaders that clean up industrial waste or recover and recycle valuable raw materials

Vacuum Trucks Vacuum Trucks ——IndustrialIndustrial

Water BlastersWater BlastersVacuum Trucks Vacuum Trucks ——MunicipalMunicipal

SweepersSweepers

Dealers, direct

Contractors, cities, counties, states, airports

Street, parking lot and industrial sweepers

Dealers

Contractors, cities, counties, states, airports

Sewer and catch basin cleaners, glycol recovery vehicles, hydro excavating vehicles

Direct, distributors

Industrial contractors, plants and rental houses

Water blasters that clean and prepare industrial surfaces

Channels

Products

Customers

Environmental Solutions Group

Overview/outlook:

• Orders rose 21% in 2006

• Strong growth in vacuum trucks and street sweepers

• Introducing innovativenew products

• Increased demand from industrial and rental fleets

Sales ($M)Operating Margin (%)

Sales vs.Operating Margin

$399

$295

$348

8.6% 8.3%

9.3%

0

50

100

150

200

250

300

350

400

2004 2005 20060

4

8

12

16$ %

11

Tool Group

OME, Progressive, Misumi, Husky, Anchor Danly

Competitors

Die & Mold ToolingDie & Mold Tooling

Industrial distributors, direct

Automotive OEMs, injection molders, diecasters

Punches, pins, components, retainers, matrices, mold bases

Channels

Products

Customers

Tool Group

Overview/outlook:

• Cutting tool businesses divested

• Increased international volume

• 4Q06 margins at 8.7%

Sales ($M)Operating Margin (%)

Sales vs.Operating Margin

$122 $124 $123

8.1%9.1%

6.7%

0

20

40

60

80

100

120

140

160

180

200

2004 2005 20060

4

8

12

16

20$ %

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• Repositioning focuses company on higher-growth public safety and security market

• Synergies among remaining businesses not yet fully realized after shrink-to-grow phase

• EV incentive system aligns all managers to drive shareholder value

Investment Appeal

2007 Outlook

Revenue Op Margin % Revenue Op Margin %SSG 305 13.5% 10%+ 14-15%

FRG 385 1.8% 7-10% 3-4%

ESG 399 9.3% 10%+ 9%+

Tool 123 6.7% 2-4% 8-9%

FSS 1212 5.8% 8-10% 6-7% Target 10% operating margin

Gradual improvement to 9-10%

Margins stable above 14%

Continued margin recovery

2006 20073-5 Year Outlook

Margin stable above 9%

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Long-Term Targets

• 15% ROIC

• Triple revenue

• Strong balance sheet

• 10% operating margin

• Commensurate share price

Vision

Federal Signal … the leaderin advancing security and

well-being for communities and workplaces around the world.