SOURCE: USA Signal Technology, Inc.

November 09, 2006 06:00 ET

USA Signal Technology's LED Traffic Lights Can Reduce Municipalities' Traffic Signal Energy Use Up to 90% and Provide Citywide Broadband Wireless Networks

DALLAS, TX -- (MARKET WIRE) -- November 9, 2006 -- USA Signal Technology, Inc. (PINKSHEETS: USSG) (www.usasignal.com) is at the forefront of enabling municipalities to cut traffic signal energy and maintenance costs by as much as 90 percent by replacing high-wattage incandescent bulbs with its advanced LED (Light Emitting Diode) technology.

There are an estimated 320,000 intersections in the U.S. with traffic signals that average 50 lights per intersection. This amounts to about 16 million traffic signals operational 24 hours a day that consume an extraordinary amount of energy. The use of LEDs to replace energy-squandering incandescent bulbs can amount to annual savings of 4.5 trillion watt-hours.

The cost savings are almost incalculable. 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.

Many of these cities will switch to energy-saving LEDs. Los Angeles, for example, where USA Signal has been approved to bid, has just set aside $4 million in fiscal 2006-2007 to start replacing its incandescent traffic lights with LED technology. All of the city's incandescent traffic lights are expected to convert to LEDs within five years.

USA Signal's certified 8-inch and 12 inch "Intelligent" Traffic Signal Lights exceed all LED requirements of the Institute of Transportation Engineers (ITE) Specifications, as well as Los Angeles DOT Specifications. This has paved the way for USA Signal to market its superior technology to municipalities nationwide; an emerging market the company estimates to be about $800 million.

USA Signal's LED lights are different from incandescent light. It is based on semi-conductor solid-state junctions that illuminate when current passes through the thin-layered materials. Its advantages are:

-- Considerably less energy consumption provides savings of about 90 percent.

-- Ten times longer operating life provides much less maintenance.

-- Greater durability due to solid-state technology resistant to vibration and impact because it relies on light generated by passing of low current through thin-layered semi-conductive color-specific material rather than a fragile incandescent filament bulb through a colored lens.

-- Reduced heat to generate light than incandescent or halogen lights.

-- Reduced daytime peak consumption because LED traffic signals operate with only 10% of the energy used by incandescent bulbs.

-- Effective battery backup because of LEDs' low energy consumption.

-- Lower cost of ownership due to 90 percent less energy use, ten times longer life and less maintenance.

-- Safer traffic flow because of greater system reliability and capability of functioning during blackout or emergency situations.

-- Serve as integral part of Intelligent Traffic Intersection System with considerable communication capabilities.

USA Signal is the only company that provides second-generation intelligent LED traffic signals. Designed with field conditions in mind, USA Signal's LEDs withstand the many challenges presented by actual environmental conditions, including the vagaries of power supplied to intersections.

The result is the most advanced system on the market today, comprised of superior products supported by a portfolio of patents that incorporates intelligence, wireless remote control communications and monitoring, convection cooling and thermal dissipation, auto dimming, auto sensing and auto switching between AC and DC power.

The use of intelligence and wireless communication makes the USA Signal LED traffic signals an integral part of the ITIS (Intelligent Traffic Intersection System). ITIS enables a municipality to take advantage of its own installed traffic intersection infrastructure. It enables communication with any intersection possible and creates a citywide wireless network with only a minimum additional investment.

ITIS makes it practical and economical to install video on-demand at each intersection and to monitor the functions and condition of each intelligent traffic light installed in the city. This makes it possible for the city to use actual information to replace and maintain only failing signals, rather than frequently replace them all based on poor estimates of signal life. In addition, ITIS can even provide broadband "Wi-Fi" wireless services to a community.

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

The USA Signal ITIS system is surprisingly affordable. In fact, when amortized over 10 to 12 years, it 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 & Disclaimers:

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. Schumacher Associates has prepared this release from information supplied and approved by USA Signal Technology, Inc. In conjunction with the preparation and distribution of this release as well as other public relations services, Schumacher Associates has been compensated with $2,500 cash and 300,000 shares by third party shareholders. Schumacher Associates officers, directors and employees may also own shares, for investment purposes, and may increase or decrease its positions at any time, without notice.

Contact Information