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News

ATS statement on Redflex legal battle

American Traffic Solutions : 21 November, 2008  (Company News)
Redflex statement on use of photo enforcement cameras in Arizona misleading according to American Traffic Solutions
A statement issued to the Australian Securities Exchange on November 18, 2008 by Redflex Traffic Systems (Redflex) included several misstated facts regarding American Traffic Solutions' (ATS) lawsuit against Redflex pending in US District Court in Phoenix, Arizona.

Contrary to Redflex's statement, the ATS lawsuit does not seek to overturn the award of a statewide contract for photo enforcement in Arizona. That issue is being addressed through the appropriate administrative process. The next step in that process is a formal hearing before an Arizona Administrative Law Judge scheduled for January 5, 2009.

The lawsuit filed in US District Court addresses Redflex's deployment of illegal radar equipment for photo speed enforcement programs in Arizona and seven other states. ATS is suing Redflex for violating provisions of a US law that protects businesses from false or misleading statements and unfair competition.

In a letter to State of Arizona officials dated August 7, 2008, Redflex's president admitted that the company deployed radar equipment that was not certified by the Federal Communications Commission (FCC), as required by FCC rules.

Although the president of Redflex claimed that the use of illegal equipment was an "honest oversight," ATS believes that Redflex knowingly ignored the FCC regulations, many times and in many states, including Arizona, Washington, Louisiana, Ohio, Tennessee, Iowa, New Mexico and Oregon.

ATS' lawsuit focuses on Redflex's "bait and switch" tactics of telling potential clients it would use equipment that was legal and then actually deploying different equipment that was not legal for use in this country.

In its November 18 statement, Redflex refers to recent contests between ATS and Redflex in two Texas cities. However, those matters relate to red-light cameras. The lawsuit deals with photo speed enforcement programs, not red-light cameras.

At the proper time, ATS plans to prove in the United States District Court in Phoenix that Redflex made false statements and engaged in unfair competition. That case is quite different from the procurement-related matter before the Arizona Administrative Law Judge.
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