Tuesday, 11 October 2005 10:00

Redflex wins multi-million dollar Texas contract


Redflex Traffic Systems Inc, the US subsidiary of Redflex Holdings Limited (ASX:RDF), has been awarded a new US contract with a photo enforcement program with the City of Plano in the State of Texas.

Under a three year contract with three additional one year renewal options, Redflex will deliver fixed redlight enforcement systems for up to 20 intersections for a fixed fee per approach. Based on a previous deal in 2004, which was quoted at US$6,000 per month per approach, the deal could be worth up to a whopping US$34.6 million over six years.

Redflex has also executed a new contract with its existing customer, the City of Fremont in California to continue the photo enforcement program. Redflex initial contract with the City of Fremont was signed in September 1999. The new contract is for the provision of services and systems for a photo enforcement program for a new term of five years with two, one year renewal options.

Bruce Higgins President and CEO of Redflex Traffic Systems in commenting on two contracts said 'The award of the red light enforcement pilot program in Plano marks our first contract in the State of Texas, the second largest state by population in the USA representing a major market for our public safety programs and marks our 14th State under contract within the USA. In the State of Texas, with population of 22,500,000, estimates are that the cost of motor vehicle crashes was $19.7 billion in 2000. Redflex is pleased to be selected in a competitive process based on our ability to deliver the best program and most
advanced technology proven to deliver improvements in public safety. Our new contract with the City of Fremont also demonstrates the long term nature of our programs and commitment to them by both municipalities and Redflex. The new overall term for the Fremont contract with options provides for the program operation through the year 2012.'

RDF shares closed up 12c to finish on $3.32 in a solid day of trading.

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