Federal Signal Names New Director

Under terms of a settlement with the group, Federal Signal has appointed Dennis J. Martin to its board and will nominate him for a three-year term at its 2008 annual meeting, currently scheduled for April 22.

Ramius will also have the right to recommend one additional board member for a one-year term after the company's annual meeting, Federal Signal said.

As a result, the Oak Brook, Ill.-based company's board will expand to 10 members.

In exchange, the Ramius group agreed to support the board's nominations and refrain from nominating any other person for election to the board or submitting any stockholder proposals.

According to its latest filing with the Securities and Exchange Commission, Ramius and its affiliates beneficially own about 3.8 million shares, or a 7.9 percent stake based on 47.8 million shares outstanding as of Jan. 31.

Martin, 57, retired in 2005 as chairman and chief executive of General Binding Corp. and currently works as an independent adviser.

Federal Signal shares rose 32 cents to close at $12.71.