Tim OLeary President Quixote Traffic Corporation NEMA Manufacturer LED Traffic and Pedestrian Signals

Signal Product mix Moving from Incandescent to LED We expect 2006 to result in continued mix growth to LEDs.

Incandescent Signal Volume Decline As the reciprocal, non-LEDs sales mix has declined and we anticipate that it will continue in 2006.

Trends Identified by the Manufacturer 2006 has experienced a continued shift to LEDs as the customers and distributors have followed the 01/01/2006 legislation fulfillment of incandescent orders to be made up of various spare part replacement and repairs of existing units in the field. We maintain bare level inventory of incandescent technology to meet only replacement and spare parts requirements. We expect all US municipalities to follow the same standards for conformity to MUTCD requirements for traffic signals such as size, luminance, and power consumption We are focusing our product on these standards. Southeast USA has had large procurements of newer LED technology to complete large scale replacement of older signals following weather disturbances, such as hurricanes.

Average Capital Cost of a signal versus the annual energy cost The initial investment in LED technology is higher than Incandescent, however recurring energy expense is about 20% of Incandescent

Sample Comparison on Hand to Man

LED Impact on Product Trends Increasing popularity of LED Pedestrian Signals follows the success of LED Traffic Signals. Countdown Pedestrian module has been enabled only through the LED technology which supports the variable numerical output.

LED Impact on Product Trends Trend towards UPS battery backup systems for intersections makes LED Signals the preferred choice. Low energy needs translate to less battery needs.

Making the World a Safer Place to Travel NEMA manufacturers support the specification and transition to LED Traffic & Pedestrian Signals safety long term energy savings LEDs have a gradual luminance decrease whereas incandescent lights have a sudden light failure potentially impairing the drivers ability to accurately read traffic signals. LED Signals are made up of many small diodes and thus a reduced risk of traffic signal failure due to a bulb burn-out Longer life reduces the safety risks to maintenance workers as a result of fewer replacement activities. UPS mode during emergency situations make it critical to use LEDs which are energy efficient and support these systems.

Tim OLeary President Quixote Traffic Corporation February 23, 2006 LED Traffic and Pedestrian Signals NEMA Manufacturer