EXHIBIT 2.3

                              FOR:      QUIXOTE CORPORATION

                              CONTACT:  Joan R. Riley
                                        Daniel P. Gorey
                                        (312) 467-6755
FOR IMMEDIATE RELEASE 
- -----------------------                 Morgen-Walke Associates
                                        June Filingeri, John Blackwell
                                        Media contact: Eileen King
                                        (212) 850-5600


           QUIXOTE CORPORATION ANNOUNCES SETTLEMENT OF LAWSUIT
                  ASSOCIATED WITH PREVIOUSLY OWNED BUSINESS 

     CHICAGO, IL, December 15, 1998--Quixote Corporation (Nasdaq:QUIX) 
announced today the settlement of litigation involving its formerly owned 
subsidiary, Disc Manufacturing, Inc. ("DMI"), which it sold in April 1997.  
The litigation, initiated in 1995, includes a lawsuit brought by Discovision 
Associates against DMI for infringement of certain patents related to optical 
disc technology as well as a lawsuit brought by DMI against Discovision 
Associates, Pioneer Electronic Corporation, Pioneer Electronics (USA) Inc. 
and Pioneer Electronics Capital Inc. for violations of the antitrust laws and 
acts of unfair competition.  The settlement involves a payment previously 
accrued in the financial statements and, therefore, there will be no 
additional charge to Quixote's earnings related to this matter.  No other 
terms were disclosed. 

     Philip E. Rollhaus, Jr., Quixote's Chairman and Chief Executive Officer, 
commented: "The settlement of the litigation between our discontinued 
operation, DMI, and Discovision and its affiliates resolves lawsuits which 
have been an ongoing expense and drain on management's time over the past 
several years.  The settlement avoids a potentially protracted trial and 
appellate process.  We choose to concentrate our efforts and time on our 
highway safety businesses and the opportunities they present to continue 
Quixote's profitable growth."

     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 impact attenuators, computerized highway advisory 
radio transmitting systems, electronic wireless sensing devices 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, 1998, 
UNDER THE CAPTION "FORWARD-LOOKING STATEMENTS" IN MANAGEMENT'S DISCUSSION AND 
ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS, WHICH DISCUSSION 
IS INCORPORATED HEREIN BY THIS REFERENCE.

                                          
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