SOURCE: USA Signal Technology, Inc.

August 24, 2006 18:01 ET

Two Independent Testing Laboratories Certify USA Signal Technology's "Intelligent" LED Energy Saving Traffic Lights Exceed ITE and Los Angeles Requirements for Nationwide Marketing to

Municipalities

As Cities and Counties Begin to Allocate Hundreds of Millions of Dollars to Replace Costly Energy Squandering Incandescent Bulbs in Traffic Lights With Energy Efficient LEDs and Integrated Systems, USA Signal Introduces Its Superior "ITIS" Feature Rich Intelligent Traffic Intersection System

DALLAS, TX -- (MARKET WIRE) -- August 24, 2006 -- USA Signal Technology, Inc. (PINKSHEETS: USSG) (www.usasignal.com) has received certifications from two independent testing laboratories that its 8 inch and 12 inch "Intelligent" Traffic Signal Lights that operate with 90 percent less electricity and have an estimated life expectancy 10 times longer than conventional light bulbs, exceed all Light Emitting Diode (LED) requirements of the Institute of Transportation Engineers (ITE) Specifications, as well as Los Angeles DOT Specifications. This paves the way for USA Signal to market its superior technology to cities and counties nationwide; an emerging market the company estimates to be about $800 million.

The ITE specifications provide a standard for minimum performance requirements of 8 inch and 12 inch LED vehicle traffic signal modules while in service. USA Signal's LEDs were tested by LightMetrics, Inc. and Garwood Laboratories, Inc. Both independent laboratories confirmed that USA Signal's LEDs far exceed not only the ITE specifications, but also the more rigorous City of Los Angeles specifications, which often serve as a benchmark for other municipalities to emulate.

Traffic signals, which are operational 24 hours a day, seven days a week, typically use high-wattage incandescent bulbs that create a sizeable power bill for state and local governments. For a medium-sized city like Anaheim with a population of about 300,000, the power bill from traffic signals alone can exceed $400,000 a year. Larger cities like New York and Los Angeles have annual power bills from traffic signals that can exceed $10 million. According to power companies, recent increases in power rates in some states could double these costs. USA Signal's LED traffic lights can substantially cut the cost of incandescent bulbs by almost 90 percent.

For these reasons, an overwhelming number of U.S. cities and counties are ready to convert energy squandering incandescent traffic signals to power-saving LEDs. Los Angeles, for example, where USA Signal has submitted its certifications to bid, has just set aside $4 million in fiscal 2006-07 to start replacing its incandescent traffic lights with LED technology. All of the city's traffic lights are expected to be operating on LEDs within five years.

"With these two independent certifications that validate our superior technology, we are ready to aggressively market to Department of Transportation (DOT) agencies across the country," says Bob Stevenson, USA Signal President and CEO. "We expect a very positive reception because when a product meets or exceeds Los Angeles DOT and CALTRANS specifications it will normally be in compliance with standards in all states. We estimate the market for LED traffic signals along with ITIS/Critical Path Intersections to be about $ 800 million and growing.

"Ours are the only intelligent LED lights in the market and offer a multitude of superior features," continues Mr. Stevenson. "For example, our LED lights have the very best surge/transient suppression circuitry in the industry and is part of the reason why USA Signal is able to offer a longer product warranty than any of its competitors. This element together with optional wireless communications capability make the USA Signal Intelligent Traffic Intersection System, ITIS, the most feature rich and lowest cost-of-ownership of all LED traffic systems offered today."

USA Signal's ITIS is comprised of several interrelated components that operate as a coherent, multi-functional system. When a municipality's existing infrastructure is coupled with USA Signal systems, it enables traffic lights to function and communicate with a central location during natural and man-made disasters; such as brownouts, blackouts, earthquakes, hurricanes, lightning, nuclear accidents, and terrorist acts. Moreover, the system provides a wireless network infrastructure that offers several other benefits, such as video on-demand for each intersection, RFID asset tracking and sensor interfaces. ITIS can even provide broadband "Wi-Fi" wireless services to a community.

The ITIS system also transmits complete operational status of all equipment installed at an intersection. With this continuing information, DOT repair departments can schedule replacement of defective signals to prevent potential safety issues, rather than have to replace every one of a city's lights on a periodic basis. In addition, each intersection can have the USA Signal 4 or 6-View Intersection "video-on-demand" Cameras that transmit color 5 frames per second MPEG-4 images to a central office. The system has interfaces for RFID tag receivers, pollution level monitors and when available, Bio-Chem agent sensors. The system is managed through USA Signal's user-friendly proprietary software.

The USA Signal ITIS system is surprisingly affordable. In fact, when amortized over 10 to 12 years will save a city money compared to "dumb" LED signals that cannot operate in a power outage situation, come with a meager warranty, and do not provide any of the extensive technological advances and capabilities ITIS offers.

About USA Signal Technology, Inc.

USA Signal Technology, Inc. (PINKSHEETS: USSG) (www.usasignal.com) is a Dallas, TX-based Company that designs, manufactures and markets state-of-the-art traffic signaling and monitoring systems. It provides the most technologically advanced and lowest cost-of-ownership intelligent LED (Light Emitting Diode) traffic signals for municipalities. Its advanced designs provide the most cost effective LEDs and, most important, it has the only signals that combine other advanced technology products to create the first Intelligent Traffic Intersection Systems (ITIS) and Railroad Crossing Surveillance & Detection Systems.

Forward-Looking Statements:

The information in this Press Release includes certain "forward-looking" statements within the meaning of the Safe Harbor provisions of Federal Securities Laws. Investors are cautioned that such statements are based upon assumptions that in the future may prove not to have been accurate and are subject to significant risks and uncertainties, including the future financial performance of the Company. Although the Company believes that the expectations reflected in its forward-looking statements are reasonable, it can give no assurance that such expectations or any of its forward-looking statements will prove to be correct. Readers are cautioned not to place undue reliance on these forward-looking statements that speak only as of the date of this release, and the Company undertakes no obligation to update publicly any forward-looking statements to reflect new information, events, or circumstances after the date of this release except as required by law.

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