FOR: QUIXOTE CORPORATION

                                   CONTACT: Daniel P. Gorey
                                            Chief Financial Officer
                                            Joan R. Riley
                                            Director of Investor Relations
                                            (312) 467-6755

FOR IMMEDIATE RELEASE              CONTACT: Investor Relations:
                                            Hulus Alpay/Jack Cohen
                                            Morgen-Walke Associates
                                            (212) 850-5600


     QUIXOTE CORPORATION ANNOUNCES ACQUISITION OF NATIONAL SIGNAL, INC.

     CHICAGO, IL, January 16, 2001-- Quixote Corporation (Nasdaq:QUIX)
announced today that its wholly-owned subsidiary, Quixote Transportation
Safety, Inc., has acquired all of the stock of National Signal, Inc., a
manufacturer of roadway safety products including electronic message signs,
directional displays and trailer mounted arrow panels for $2.8 million in
cash and a three-year note for $1.5 million payable in equal annual
installments. National Signal, based in La Mirada, California, had revenues
in calendar 2000 of approximately $8 million. National Signal's current
management will continue to manage the Company and, as part of the purchase
price consideration, will have the opportunity to participate in its growth
by attaining certain sales and earnings targets. The acquisition is expected
to be modestly accretive to Quixote's earnings in calendar 2001.

     National Signal (www.nationalsignalinc.com) is a leading regional
manufacturer of portable programmable electronic message signs, directional
displays, trailer mounted solar and diesel-powered arrow panels, flashing
beacon lights and other roadway safety products. State and local
transportation authorities increasingly use these products to provide advance
warnings and other information to motorists and to assist in diverting or
controlling traffic around roadway construction sites and work zones.
National Signal's visual display products include software-enabled and
remote-controlled message signs that display both text and graphics.

     Leslie J. Jezuit, Quixote's Chief Executive Officer, commented, "The
acquisition of National Signal is a strong strategic fit for Quixote. We
expect to expand the market for these products by leveraging our extensive
marketing, sales and distribution capabilities and by developing synergies
with our existing products. National Signal's visual display devices can be
marketed as stand-alone products,

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QUIXOTE CORPORATION ANNOUNCES ACQUISITION OF                           PAGE: 2
NATIONAL SIGNAL, INC.


integrated as an accessory with an existing line of highway safety products,
or used as the visual output device in an intelligent work zone system.
Information gathered by our wireless sensors, such as road surface
conditions, traffic flow, weather and other data, can now be communicated
visually, by text or graphics, using National Signal's products, as well as
audibly through our highway advisory radio systems which typically use
flashing lights and message signs to alert motorists to tune to the
appropriate emergency channel. We also intend to offer National Signal's
visual displays as an accessory for our truck-mounted attenuators."

     Mr. Jezuit concluded, "As roadway safety and traffic monitoring grow
increasingly more sophisticated and technologically driven, we are in an
ideal position to be a solutions provider of intelligent transportation
systems products and services with our advanced sensing technologies,
advisory radio and now, visual electronic communications."

     Quixote Corporation, (WWW.QUIXOTECORP.COM), through its wholly-owned
subsidiaries, Energy Absorption Systems, Inc. and the TranSafe Corporation,
is the world's leading manufacturer of energy-absorbing highway crash
cushions, truck-mounted attenuators, computerized highway advisory radio
transmitting systems, electronic wireless measuring and sensing devices,
flexible post delineators and other highway safety products and services.

     SAFE HARBOR STATEMENT UNDER THE PRIVATE SECURITIES LITIGATION REFORM ACT
OF 1995: EXCEPT FOR HISTORICAL INFORMATION CONTAINED HEREIN, THE MATTERS SET
FORTH IN THIS NEWS RELEASE ARE FORWARD-LOOKING STATEMENTS. THE
FORWARD-LOOKING STATEMENTS SET FORTH ABOVE INVOLVE A NUMBER OF RISKS AND
UNCERTAINTIES THAT COULD CAUSE ACTUAL RESULTS TO DIFFER MATERIALLY FROM ANY
SUCH STATEMENT, INCLUDING THE RISKS AND UNCERTAINTIES DISCUSSED IN THE
COMPANY'S ANNUAL REPORT ON FORM 10-K FOR ITS FISCAL YEAR ENDED JUNE 30, 2000,
UNDER THE CAPTION "FORWARD-LOOKING STATEMENTS" IN MANAGEMENT'S DISCUSSION
AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS, WHICH
DISCUSSION IS INCORPORATED BY THIS REFERENCE.

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