Welcome to the Third Quarter 2009 Federal Signal Earnings Conference Call. (Operator Instructions) I would now like to turn the call over to Mr. Bill Barker, Senior Vice President and CFO.

Good morning and welcome to Federal Signal's third quarter 2009 conference call. I'm Bill Barker, Federal Signal's Chief Financial Officer. Joining me on the call today is Bill Osborne our President and CEO. We will be using some slides in the presentation. The slides can be found by going to our website, clicking on the Q3 investor call icon and selecting the webcast. We will post the slides to our website after the call. Before we get to the business review, I would like to remind you that some of our comments made today may contain forward-looking statements that are subject to the Safe Harbor language found in today's news release and in Federal Signal's filings with the Securities and Exchange Commission. These documents are available on our website, www.federalsignal.com. We will file our Form 10-Q shortly. Now I will turn the call over to Bill Osborne.

Overall, I'm pleased with the progress the company made in the third quarter. As was discussed in our press release, we reported earnings per share from continuing operations of $0.10. This was in line with our internal expectations, although it was lower than last year's third quarter. Before I hand the call back over to Bill Barker who will go through our third quarter financials in detail, I'd like to offer a few observations. One consistent theme for Federal Signal in 2009 has been our emphasis on reducing overhead costs and we continued to make great progress in the third quarter. We reduced overhead costs, which we define as fixed manufacturing expenses and SG&A, by over $12 million compared to last year's third quarter. The year-on-year comparison included $3.6 million of one-time costs in 2008 related to a contract dispute regarding parking operations at the Dallas/Fort Worth airport. Thus, excluding that one-time favorability, we reduced overhead costs by about $9 million in the quarter. Year-to- date, we have reduced overhead costs by $20 million, including $5 million of cumulative 2008 costs related to the contract dispute. Our team has worked hard to drive overhead costs out of the business and will continue to execute meaningful cost reduction initiatives as we go forward. We now expect to deliver a reduction in reported overhead costs of more than $25 million this year, exceeding our objectives by $5 million. Our cost reduction efforts and good working capital management enable us to generate strong cash flow from operations. This, combined with the proceeds we received from the previously announced sale of our rival European sweeper business, enabled us to reduce our debt by over $26 million in the quarter providing us with additional financial flexibility. Additionally, the revenue environment stabilized over the past few…

I will give a fairly brief review of our third quarter results, which are included in today's press release. I would be happy to answer any questions at the end of the call or later today. Looking at our P&L for the quarter, revenue was $167 million which was down 21% versus last year. The net currency impact on revenue for the quarter was negative 1% or about $2 million. As indicated on the slide, we reduced our fixed manufacturing overhead costs by $2.8 million in the quarter. Total operating expenses, or SG&A, were reduced by $9.5 million versus 2008. The sum of the cost reduction in fixed manufacturing overhead costs and that in operating expenses generates the $12 million number we referred to as our total overhead cost reduction in the quarter. As Bill mentioned, our year-to-date reduction and total overhead cost is $20 million which includes $5 million of cumulative costs in 2008 related to the parking contract dispute. Operating income for the quarter was $7.5 million, or 4.5% of sales, compared to $12.3 million, or 5.8% of sales last year. Interest expense of $2.6 million in the quarter was below last year's $3.6 million due to lower borrowings and lower interest rates in the quarter. Our effective tax rate was 17.9% compared to a net tax benefit last year. Last year's tax benefit reflects utilization of capital loss carry-forwards, resulting from sale leaseback transactions for two manufacturing facilities. Our reported EPS from continuing operations in the quarter was $0.10 compared to $0.31 last year. Turning to the segments, our safety and security group, or SSG, is Federal Signal's most profitable business group generating $6.7 million of operating income in the quarter and the 9.1% operating income margin. Sales for SSG declined 18% versus last year for the…

As I mentioned in my earlier remarks, this was a solid quarter for Federal Signal and I'm confident that we are headed in the right direction. We delivered third quarter EPS from continuing operations of $0.10. Our previous guidance had been that we would generate between $0.20 and $0.25 of EPS from continuing operations in the second half of the year, which would yield a full year EPS range of $0.33 to $0.38 for 2009. We do not see a need to change that outlook and our current expectations for 2009 are consistent with our previous guidance. Based on what we are seeing and hearing in our markets, we expect to see fourth quarter orders above the Q3 level in most of our businesses. We are still in the process of developing and refining our forecast for orders, revenues and costs for next year, and thus it is too early to discuss 2010 guidance. We will have more to say about our 2010 outlook during our fourth quarter earnings call. Now I'd like to talk about the progress we're making on our key strategies. There are two basic parts to our strategies. Part one is focused on reducing costs, improving margins and cash flow, and streamlining the portfolio basically driving efficiencies to improve profits and provide cash flow to investing growth opportunities. As both Bill and I have discussed, we feel good about the progress that we've made here. We're succeeding in driving down costs. The company has reshaped its business portfolio over the past 18 months, and we've delivered strong cash flow. Part two of the strategy is to build our public safety businesses and take advantage of the growing global market for public safety and intelligent transportation systems. The revenues for our public safety businesses are currently approximately…

(Operator Instructions). Your first question comes from Charles D. Brady – BMO Capital Markets. Charles D. Brady – BMO Capital Markets : Could you just give me more granularity on the foreign exchange impact not only to Bronto, but to the other two businesses as well?

The impact at Bronto on the revenue line was about $1 million. ESG was about flat not a lot of impact there, and SSG was around $1 million as well. Charles D. Brady – BMO Capital Markets: And tax rate in Q4 that we should be looking at?

Probably something in the low 20s. I'm sorry, that's a full year number. It's probably more in the mid-20s for Q4. Full year would be more about 22%. Charles D. Brady – BMO Capital Markets: Then just looking at the order trends, in your prepared remarks your comments with it, you expect sequentially to see orders up in most of your businesses. Can you give me any more granularity on that as far as I guess importantly which businesses you still think are having the most trouble? And I guess given that some of your businesses are pretty short cycle, where are you picking up that sort of, is it inquiry levels, or where are you getting that comfort level that you'll see sequential order increases?

Well, a couple of questions embedded there. The business obviously with the shortest order to delivery cycle is safety and security group, and we have seen an uptick in orders in October so far this year for safety and security. So we expect to see a bit of improvement there. In the ESG group, that's obviously a much longer lead time business and very heavily exposed to U.S. municipal spending. We haven't seen as strong an increase at ESG. And I might point out that we expect ESG will lag slightly in the recovery of our other businesses given its exposure to U.S. municipal spending. We've seen continued strength in Bronto orders. We saw a 24% increase quarter-to-quarter sequentially. And we're seeing early indications in the fourth quarter of strong orders for Bronto as well.

Your next question comes from Walt Liptak – Barrington Research. Walt Liptak – Barrington Research : You may have addressed this already, but I wanted to know about the fire rescue group, the Bronto group, the $27 million in revenue. Was there a push out in orders or in shipments, I mean?

I'm sorry, Walt. Could you say a little bit more on that? Walt Liptak – Barrington Research: Well, I mean, it looks a little bit low sequentially.

Yes, it's traditionally the third quarter for Bronto is the lowest quarter for our lower quarter. We've seen this pattern for the last three or four years that shipments in Q2 are higher than Q3 and then they rebound back up in Q4. I think part of that is due to the fact that Bronto is a very European focused business and the European summer holidays kind of slow down the business there. Walt Liptak – Barrington Research: Then I guess the outlook for the rest of the year with the orders up 24% suggest that the market is still, even in this deep recession, still pretty good.

Yes, again, remember that's 24% sequentially versus second quarter not versus last year. But we do expect to see a significant growth in Q4 orders for Bronto versus Q3 consistent with the pattern we've seen in the last several years. Walt Liptak – Barrington Research: I probably missed this, but the stability of the marketplace looks pretty good? It looks like the data shows that, but I want to hear you say it.

Yes, we've seen no further deterioration over the last several months across all of our businesses. Obviously, we'd like to benefit, we're well-positioned to benefit from a strong economic recovery, but we think our businesses will experience that benefit at staggered times. As I say, our shortest cycle business is safety and security group. We expect to see near-term improvement with them. The environmental solutions group is a much longer term business and tends to be heavily exposed to U.S. municipal spending, and we think U.S. municipal spending will lag the current economic recovery. It's highly correlated to consumer spending and unemployment. And so I think until jobs rebound in the U.S. we think ESG will lag the general economic recovery. Walt Liptak – Barrington Research: Are you impacted anymore by the firefighter grant program, AFG, because I believe that fund was not flowing during the quarter?

I don't think we're impacted by that at all, Walt. Walt Liptak – Barrington Research: You mentioned the driving costs out, reshaping the business. I wonder if we can get a little bit more color on like some of the actions that are happening, the specific programs. Is it factory floor space getting freed up, plant consolidation or is it just overhead? How much cost comes back?

Well, we have some pretty big projects to free up plants floor space. We're consolidating some operations. For example, we're moving some warehousing operations in excess facilities into major facilities. We have a laser-like focus right now on inventories where we're consolidating the number of offerings and skews that we offer, not only to reduce inventory, but also to free up plant floor space so that we can consolidate operations. So, you'll see some very small restructuring charges in the Q related to those activities. Walt Liptak – Barrington Research: Is this across the board within all the operations, or is all Federal Signal getting restructured now?

Yes, we're taking a very tough look at costs in every business. There's no business in Federal Signal that's sacrosanct with respect to that. But obviously we have some businesses where we have more opportunity than others and other businesses where we have to invest. So we're taking a very balanced approach, we're investing internally in our growth businesses, and we're taking a very aggressive position on costs across all of our businesses. As I've said in earlier calls, that is going to be part of our DNA. Walt Liptak – Barrington Research: I'm sorry if I missed this, but what's the tax rate that you're expecting for the fourth quarter?

Fourth quarter, I would use mid-20s probably use 25% as a proxy, which would get you to the low 20s, around 22% for the full year. Walt Liptak – Barrington Research: And any idea for next year?

Still working on that.

Your next question comes from Charles Brady – BMO Capital Markets. Charles D. Brady – BMO Capital Markets: Just another follow-up question on Bronto, in the past you've talked about getting that margin level up into double digits. Is that still the goal? And do you think that would happen in fiscal 2009?

That is still an objective for us. We do have a number of cost reduction projects still teed up for Bronto in 2010. So I'm not quite sure if we'll get there on a full year basis in 2009, but certainly by the end of 2010, we should be there.

Charlie, it's Bill Barker. Again, some of the volume fluctuations on the seasonality affects the margins. So in Q2 we had a margin of around 12% at Bronto, Q3 down a little bit because of the volume impact and then Q4 we do expect to get it back up into double digits with the higher volumes.

With no further questions in the queue, I would like to turn the call over to Bill Osborne for closing remarks.

I just want to reiterate that Federal Signal has gone through a very important period of consolidation and cost reduction. Our objective has always been to position the company well for economic recovery. We think we've done that. We think that we've created value by becoming more efficient, paying down debt and creating opportunities for ourselves to grow and invest. I think it's fair to say that after this period of consolidation we're looking to invest internally, as well as externally to begin to grow in the years ahead. Thank you very much for your attention.

Thank you for your participation in today's conference. This concludes the presentation. You may now disconnect.