REDFLEX Traffic Systems, Inc. Wins Unanimous Jury Verdict Vs ATS

June 8, 2010 – Phoenix, Arizona

REDFLEX Traffic Systems, Inc. is pleased to announce a unanimous jury verdict on all three claims brought against the company by American Traffic Solutions (ATS) in United States Federal District Court. Following a 2008 competitive bid solicitation for the Arizona Department of Public Safety traffic program where ATS was the losing bidder, ATS filed a lawsuit in Arizona state court (which ATS later dropped), subsequently filed an appeal with the Arizona Department of Administration (which was later dropped), but continued to pursue a case against REDFLEX in U.S. Federal Court in Arizona. REDFLEX Shareholder notifications were issued on November 18, 2008 and January 8, 2009.

The eight member jury in United States Federal Court in Phoenix, AZ rejected 33 assertions made by ATS which included false advertising, tortious interference with contracts, and unjust enrichment arising out of 12 contracts in 11 jurisdictions including Arizona. REDFLEX was represented by Greenberg Traurig, LLP attorneys: E. Jeffrey Walsh, Robert Mandel, and Stacey Gottlieb. Mr. Walsh stated, “The jury’s conclusive decision has fully vindicated REDFLEX’s position that it has always acted with the highest standards of business ethics in providing traffic safety technologies and service.”

Karen Finley, Chief Executive Officer of REDFLEX, commented, “We have always believed, and today’s decision overwhelmingly confirms, that ATS’s suit was nothing more than a baseless attempt to misuse the court system to win in a courtroom what it could not win in fair competition. For the last two years, we have never felt their claims had any merit and the jury decision today reflects complete agreement with that belief.”

British Columbia Selects Redflex Traffic Systems to Provide Intersection Safety Cameras

PHOENIX, AZ—April 30, 2010—Redflex Traffic Systems (Canada) Ltd (“Redflex”) announced its first ever Canadian contract in British Columbia. Redflex and Redflex Traffic Systems, the largest provider of road safety cameras in the U.S., are both wholly owned subsidiaries of Redflex Holdings.

Redflex has contracted with the Insurance Corporation of British Columbia (ICBC) to supply, install and maintain 140 intersection safety camera systems and provide the Image and Infringement Processing System (IIPS).

ICBC is a Crown Corporation that provides automobile insurance and is also responsible for driver licensing, vehicle licensing and registration for over three million drivers across the Province of British Columbia. The Intersection Safety Camera program is an integral road safety initiative operated by the police in BC in partnership with ICBC to reduce the frequency of crashes associated with running a red light in various communities across the Province. The contract is for an initial term of six years with two additional two-year extension options. Redflex was selected after a rigorous assessment process that included a Proof of Performance phase that required Redflex to install and operate six intersection safety systems that were closely evaluated by ICBC.

According to the ICBC 2007 report, on average a fatality occurred every 21 hours on British Columbia’s roads. Canada’s Road Safety Vision 2010 calls for a 20% decrease in the number killed or seriously injured in speed or intersection-related crashes.

“British Columbia is a safety-minded technology leader that takes a thoughtful approach in operating road safety camera programs. Redflex is proud to be the selected partner to advance its technology to superior digital quality,” said Karen Finley, president and CEO of Redflex Traffic Systems, Inc. “Redflex has established a strong rapport with ICBC through the rigorous Proof of Performance phase and we look forward to a meaningful partnership that will yield in reduced accidents and fatalities in this populous province.”

Washington Court Dismisses Class Action Lawsuit against Redflex Traffic Systems

PHOENIX, AZ—March 4, 2010—Redflex Traffic Systems, Inc., the largest provider of automated enforcement systems for roads and highways in the U.S., announced that a federal court in Washington has dismissed in its entirety a putative class action lawsuit against the company alleging that the automated enforcement programs violate state law and are unconstitutional.

On June 25, 2009, a group of plaintiffs in Washington filed a class action lawsuit against Redflex Traffic Systems. Plaintiffs alleged that the automated enforcement programs were illegal because of excessive fines, failure to obtain approval of infraction forms and improper stop-loss contractual provisions.

On March 2, 2010, United States District Court Judge John C. Coughenour granted Redflex’s dismissal motion on all claims with prejudice, entering judgment in Redflex’s favor. The Court found that Plaintiffs misinterpreted the law, determining that the fine amounts are not excessive, the infraction forms comply with state law and that stop-loss provisions were permissible under state law. As a result, the Court ruled that the Automated Traffic Safety Camera programs enacted by municipalities in the state of Washington are consistent with state law and the constitution. This is consistent with Bell v. Redflex Traffic Sys. Inc., 2009 U.S. Dist. LEXIS 85263, *7 (E.D. Tex. 2009) where it was stated “Plaintiffs do not have a legally protected right to engage in illegal conduct and be free from the consequences of that activity.”

“This ruling once again negates unfounded claims against intersection safety camera programs and their legality,” said Karen Finley, President and CEO of Redflex Traffic Systems. “With each case, we close the gap on unconstitutionality claims and leave less room for argument about the documented public safety benefits this technology provides in reducing preventable fatalities on our roads.”

Red light camera programs have proven to drastically decrease the incidence of red light running and collisions all over the nation. Annually, an estimated 153,000 people are injured in red light running accidents. According to the Federal Highway Administration, 97% of drivers feel that other drivers running red lights are a major safety threat and one in three people claim they personally know someone injured or killed in a red light running crash. In a recent nationwide opinion poll, voters showed 80% support of the red light cameras as a safety tool*.

*APCO Nationwide Poll, December 2009

Morristown, Tennessee Police Department Releases Data Showing Photo Enforcement Decreased Traffic Crashes

PHOENIX, Ariz.—February 10, 2010—The Morristown, Tenn. Police Department has publicly attributed a significant reduction in traffic collisions and increased police enforcement productivity to its photo enforcement program. According to the Morristown Police Department, the photo enforcement program deployed at three intersections in Morristown has saved lives by reducing the number of vehicular collisions and freed up officers to conduct targeted enforcement. Key findings in 2009 as compared to 2008 have shown:

• Officers responded to 1,652 crashes in 2008, and to 1,311 crashes in 2009, which is a 26.01 percent decrease overall.
• In 2008, there were seven traffic fatalities reported. In 2009, there was one traffic related fatality reported.
• Of the 341 fewer overall crashes in 2009 as compared to 2008, there were 236 less crashes on three major roadways (Davy Crockett Parkway, Morris Boulevard, and West Andrew Johnson Hwy) during the same time period.

“Using a collective approach to address the issue of reducing traffic crashes appears to have been highly successful,” stated Morristown Police Chief Roger Overholt. “Our overall goal is to make our streets as safe as possible. This can only be accomplished by modifying the behavior of our drivers.”

“We are pleased at the success the city of Morristown has seen, both in accident reduction and the peripheral benefits of additional officer time,” said Karen Finley, President and CEO of Redflex Traffic Systems. “At Redflex, public safety is our number one goal and the significant decrease in collisions are a testament to that.”

Rochester, New York Selects Redflex Traffic Systems to Provide Red Light Safety Enforcement

PHOENIX, AZ—February 2, 2010—Redflex Traffic Systems, Inc., a wholly owned subsidiary of Redflex Holdings Limited, the largest provider of photo enforcement systems for roads and highways in the U.S., announced its first ever contract in New York State. Rochester, with a population of 210,000, will install red light safety cameras throughout the entire city.

Rochester, located in Monroe County south of Lake Ontario, is the second largest economy in the state after New York City. It was recently ranked the sixth most livable city in America by the Places Rated Almanac.

• Annually, an estimated 153,000 people are injured in red light running accidents;
• According to the Federal Highway Administration, 97 percent of drivers feel that other drivers running red
lights are a major safety threat;
• One in three people claim they personally know someone injured or killed in a red light running crash; and
• In a recent statewide opinion poll conducted in New York, residents showed 77 percent support of the red
light cameras as a safety tool

“New York has more than a decade of experience in the automated enforcement industry, and so we enjoy the support of local leaders, safety experts and the community as we partner with Rochester,” said Karen Finley, president and CEO of Redflex Traffic Systems. “We have already established a great partnership with the city and look forward to expanding safety programs throughout the state.”