SOURCE: USA Signal Technology, Inc.

June 21, 2006 11:00 ET

USA Signal Technology Can Transform Nation's "Dumb" Traffic Signals Into the Swiss Army Knife of Modern Technology

Energy Savings "Intelligent" LED Traffic Signals and the "Intelligent" Traffic Intersection System Communicate Wirelessly to Enable Cities to Better Control Traffic Flow, Monitor Traffic Accidents at Critical Intersections, Assist in Evacuations, and Offer WiFi Broadband Services

DALLAS, TX -- (MARKET WIRE) -- June 21, 2006 -- USA Signal Technology, Inc. (PINKSHEETS: USSG) (www.usasignal.com) is introducing its Intelligent Traffic Intersection System [ITIS] that can use much of municipalities' existing infrastructure to keep traffic lights functioning and controlled from a central location during catastrophes or brownouts, direct traffic flow in evacuations, monitor accidents at intersections, and even provide broadband "WiFi" wireless services to a community.

The Dallas, Texas-based company's Intelligent Traffic Intersection System is developed with the latest technological advances to meet the present and future needs of the country's major cities. Among its most fundamental features, 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 with several other benefits, such as video on-demand for each intersection, RFID asset tracking and sensor interfaces.

New Orleans' Hurricane Katrina demonstrated that it is extremely difficult to evacuate a city, even with days of advance warnings -- no less a rapidly occurring catastrophe. One of the most essential elements to a swift evacuation is for the traffic signals to keep functioning at every Critical Path Intersection. These are intersections that are part of the main evacuation routes that move traffic out of cities during catastrophes or even for less dramatic incidents, such as power outages that can create havoc if the traffic signals cease to function.

To meet this need, as well as provide a host of other benefits, USA Signal developed ITIS -- creating the world's first truly intelligent traffic signals. To begin with, critical path ITIS traffic systems have battery backup and will continue to operate if cut off from a normal source of power. Most important, because ITIS is connected wirelessly to a remote location control center, it can provide complete visual information of every traffic intersection and its status, during both normal and catastrophic situations.

ITIS' 4-Way Video-on-Demand Intelligent Wireless camera system allows a city's DOT personnel to observe every intersection in real-time, 5 to 30 frames per second color video, to assess a situation and be able to more effectively respond to it.

ITIS includes a wireless WiFi mesh network that can also be used to offer Internet connectivity to neighborhoods as well as to riders on city busses and commuter trains. If RFID is installed, it can track city vehicles, assist busses to stay on schedule or track hazardous cargo that pass through its intersections. As specialized sensors are developed, it will be able to determine if other hazardous situations occur at or around these intersections.

The 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.

USA Signal's ITIS is comprised of several interrelated components that operate as a coherent, multi-functional system. This includes either 8 or 12-inch energy efficient Light Emitting Diodes (LED), traffic signals that operate with 90 percent less electricity and have an estimated life expectancy 10 times longer than conventional light bulbs. The system works seamlessly with either AC or DC power.

So that each traffic light can communicate, it is equipped with a microprocessor, a 900MHZ wireless radio that enables it to be "polled" to provide its operational status and an 802.11 radio to send data back to a central office. In addition, each intersection has cameras providing video-on-demand that is transmitted to the central office. It has interfaces for RFID tag receivers, pollution level monitors and when available, Bio-Chem sensors. The system is managed through USA Signal's user-friendly proprietary software.

The USA Signal ITIS system is surprisingly affordable, and when amortized over 10 to 12 years will actually 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.

There is a large and growing market for Critical Path Intersections, already about $200 million, for USA Signal's ITIS. For example, the estimated number of Critical Path Intersections that the company has identified in a few major cities is 15,100.

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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