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                                   Before the

                       Federal Communications Commission

                             Washington, D.C. 20554


                                     )                           
                                                                 
                                     )   File No. EB-08-SE-664   
     In the Matter of                                            
                                     )   Acct. No. 200932100018  
     Redflex Traffic Systems, Inc.                               
                                     )   FRN No. 0018359760      
                                                                 
                                     )                           


                                     ORDER

   Adopted: December 19, 2008 Released: December 23, 2008

   By the Chief, Spectrum Enforcement Division, Enforcement Bureau:

    1. In this Order, we adopt the attached Consent Decree entered into
       between the Enforcement Bureau ("Bureau") and Redflex Traffic Systems,
       Inc. ("Redflex"). The Consent Decree terminates an investigation by
       the Bureau against Redflex for possible violations of Section 302(b)
       of the Communications Act of 1934, as amended ("Act"), and Sections
       2.803(a), 2.925, 15.19, 15.201 and 90.203 of the Commission's rules
       ("Rules") regarding the marketing and use of two models of radar speed
       meter equipment.

    2. The Bureau and Redflex have negotiated the terms of the Consent Decree
       that resolve this matter. A copy of the Consent Decree is attached
       hereto and incorporated by reference.

    3. After reviewing the terms of the Consent Decree and evaluating the
       facts before us, we find that the public interest would be served by
       adopting the Consent Decree and terminating the investigation.

    4. In the absence of material new evidence relating to this matter, we
       conclude that our investigation raises no substantial or material
       questions of fact as to whether Redflex possesses the basic
       qualifications, including those related to character, to hold or
       obtain any Commission license or authorization.

    5. Accordingly, IT IS ORDERED that, pursuant to section 4(i) of the
       Communications Act of 1934, as amended, and sections 0.111 and 0.311
       of the Commission's Rules, the Consent Decree attached to this Order
       IS ADOPTED.

    6. IT IS FURTHER ORDERED that the above-captioned investigation IS
       TERMINATED.

    7. IT IS FURTHER ORDERED that all third-party complaints against Redflex
       before the Bureau related to the above-captioned-investigation as of
       the date of this Consent Decree ARE DISMISSED.

    8. IT IS FURTHER ORDERED that a copy of this Order and Consent Decree
       shall be sent by first class mail and certified mail, return receipt
       requested, to Karen Finley, Chief Executive Officer and President,
       Redflex Traffic Systems, Inc., 23751 N. 23rd Avenue, Suite 150
       Phoenix, Arizona 85085-1854 and Robert J. Ungar, Esq., Fish &
       Richardson P.C., 1425 K Street, N.W., Washington, D.C. 20005.

   FEDERAL COMMUNICATIONS COMMISSION

   Kathryn Berthot

   Chief, Spectrum Enforcement Division

   Enforcement Bureau

                                   Before the

                       Federal Communications Commission

                             Washington, D.C. 20554


                                     )                           
                                                                 
                                     )   File No. EB-08-SE-664   
     In the Matter of                                            
                                     )   Acct. No. 200932100018  
     Redflex Traffic Systems, Inc.                               
                                     )   FRN No. 0018359760      
                                                                 
                                     )                           


                                 CONSENT DECREE

   The Enforcement Bureau ("Bureau") and Redflex Traffic Systems, Inc.
   ("Redflex"), by their authorized representatives, hereby enter into this
   Consent Decree for the purpose of terminating the Bureau's investigation
   into whether Redflex violated Section 302(b) of the Communications Act of
   1934, as amended ("Act"), and Sections 2.803(a), 2.925, 15.19, 15.201 and
   90.203 of the Commission's rules ("Rules") regarding the marketing and use
   of two models of radar speed meter equipment.

   I. DEFINITIONS

    1. For the purposes of this Consent Decree, the following definitions
       shall apply:

    a. "Act" means the Communications Act of 1934, as amended, 47 U.S.C.
       S: 151 et seq.

    b. "Adopting Order" means an Order of the Bureau adopting the terms of
       this Consent Decree without change, addition, deletion, or
       modification.

    c. "Bureau" means the Enforcement Bureau of the Federal Communications
       Commission.

    d. "Commission" and "FCC" mean the Federal Communications Commission and
       all of its bureaus and offices.

    e. "Complaints" means third-party complaints that may have been received
       by, or are in the possession of, the Commission or Bureau alleging
       violations by Redflex of the rules governing the marketing and use of
       two models of radar speed meter equipment.

    f. "Compliance Plan" means the program described in this Consent Decree
       at paragraph 8.

    g. "Effective Date" means the date on which the Bureau releases the
       Adopting Order.

    h. "Investigation" means the investigation  the investigation commenced
       by the Bureau's October 9, 2008 letter of inquiry ("LOI") into whether
       Redflex violated Section 302(b) of the Act and Sections 2.803(a),
       2.925, 15.19, 15.201 and 90.203 of the Rules.

    i. "Parties" means Redflex and the Bureau.

    j. "Redflex" means Redflex Traffic Systems, Inc. and its
       predecessors-in-interest and successors-in-interest.

    k. "Rules" means the Commission's regulations found in Title 47 of the
       Code of Federal Regulations.

   II. BACKGROUND

    2. Pursuant to Section 302(b) of the Act and Sections 2.803(a), 15.201
       and 90.203 of the Rules, radio frequency devices subject to
       certification may not be marketed or used unless authorized by the
       Commission in accordance with the applicable technical and
       administrative provisions of the Rules. Under Section 2.925 of the
       Rules, equipment that is required to be certified must be labeled with
       a permanently affixed nameplate or label that lists the FCC
       identifier, and Section 15.19 of the Rules imposes additional labeling
       requirements.

    3. On October 9, 2008, the Bureau issued anLOI to Redflex. The October 9,
       2008 LOI directed Redflex, among other things, to submit a sworn
       written response to a series of questions relating to the marketing of
       two models of radar speed meters. Redflex responded to the October 9,
       2008 LOI on November 10, 2008.

   III. TERMS OF AGREEMENT

    4. Adopting Order. The Parties agree that the provisions of this Consent
       Decree shall be subject to final approval by the Bureau by
       incorporation of such provisions by reference in the Adopting Order
       without change, addition, modification, or deletion.

    5. Jurisdiction. Redflex agrees that the Bureau has jurisdiction over it
       and the matters contained in this Consent Decree and has the authority
       to enter into and adopt this Consent Decree.

    6. Effective Date; Violations. The Parties agree that this Consent Decree
       shall become effective on the date on which the Bureau releases the
       Adopting Order. Upon release, the Adopting Order and this Consent
       Decree shall have the same force and effect as any other Order of the
       Bureau. Any violation of the Adopting Order or of the terms of this
       Consent Decree shall constitute a separate violation of a Bureau
       Order, entitling the Bureau to exercise any rights and remedies
       attendant to the enforcement of a Commission Order.

    7. Termination of Investigation. In express reliance on the covenants and
       representations in this Consent Decree and to avoid further
       expenditure of public resources, the Bureau agrees to terminate its
       investigation and dismiss the Complaint. In consideration for the
       termination of said investigation and dismissal of the Complaint,
       Redflex agrees to the terms, conditions, and procedures contained
       herein. The Bureau further agrees that in the absence of new material
       evidence, the Bureau will not use the facts developed in this
       investigation through the Effective Date of the Consent Decree, or the
       existence of this Consent Decree, to institute, on its own motion, any
       new proceeding, formal or informal, or take any action on its own
       motion against Redflex concerning the matters that were the subject of
       the investigation. The Bureau also agrees that it will not use the
       facts developed in this investigation through the Effective Date of
       this Consent Decree, or the existence of this Consent Decree, to
       institute on its own motion any proceeding, formal or informal, or
       take any action on its own motion against Redflex with respect to
       Redflex's basic qualifications, including its character
       qualifications, to be a Commission licensee or hold Commission
       licenses or authorizations

    8. Compliance Plan. For purposes of settling the matters set forth
       herein,  Redflex agrees to maintain a Compliance Plan related to
       future compliance with the Act, the Commission's Rules, and the
       Commission's Orders. The Compliance Plan will include, at a minimum,
       the following components:

     a. Compliance Officer. Redflex will designate its Director of
        Technology, Charles Carpinteri ("Compliance Officer") to be
        responsible for administering the Compliance Plan.

     b. Training. Redflex will retrain, and provide materials concerning
        Parts 2, 15 and 90 of the Rules and the requirements of the Consent
        Decree to all of its employees who are involved directly or
        indirectly in the use and distribution or use of the radio frequency
        products imported and used by Redflex in the United States.

     c. Compliance Reports. Redflex will file compliance reports with the
        Commission ninety (90) days after the Effective Date, twelve (12)
        months after the Effective Date, and twenty-four (24) months after
        the Effective Date. Each report shall include a compliance
        certificate from the Compliance Officer asserting that the Compliance
        Officer has personal knowledge that Redflex has established operating
        procedures intended to ensure compliance with this Consent Decree,
        together with an accompanying statement explaining the basis for the
        Compliance Officer's compliance certification. All compliance reports
        shall be submitted to Chief, Spectrum Enforcement Division,
        Enforcement Bureau, Federal Communications Commission, 445 12th
        Street, S.W. Washington, D.C. 20554. All compliance reports shall
        also be submitted electronically to Deborah Broderson at
        Deborah.Broderson@fcc.gov and Kathryn Berthot at
        Kathy.Berthot@fcc.gov.

     d. Termination Date. Unless stated otherwise, the requirements of this
        Consent Decree will expire twenty-four (24) months after the
        Effective Date.

    9. Voluntary Contribution. Redflex agrees that it will make a voluntary
       contribution to the United States Treasury in the amount of twenty-two
       thousand dollars ($22,000). The payment will be made within 30 days
       after the Effective Date of the Adopting Order. The payment must be
       made by check or similar instrument, payable to the order of the
       Federal Communications Commission. The payment must include the
       Account Number and FRN Number referenced in the caption to the
       Adopting Order. Payment by check or money order may be mailed to
       Federal Communications Commission, P.O. Box 979088, St. Louis, MO
       63197-9000. Payment by overnight mail may be sent to U.S. Bank -
       Government Lockbox #979088, SL-MO-C2-GL, 1005 Convention Plaza, St.
       Louis, MO 63101. Payment by wire transfer may be made to ABA Number
       021030004, receiving bank TREAS/NYC, and account number 27000001. For
       payment by credit card, an FCC Form 159 (Remittance Advice) must be
       submitted. When completing the FCC Form 159, enter the Account number
       in block number 23A (call sign/other ID), and enter the letters "FORF"
       in block number 24A (payment type code). Redflex will also send
       electronic notification on the date said payment is made to
       Deborah.Broderson@fcc.gov and Kathy.Berthot@fcc.gov.

   10. Waivers. Redflex waives any and all rights it may have to seek
       administrative or judicial reconsideration, review, appeal or stay, or
       to otherwise challenge or contest the validity of this Consent Decree
       and the Adopting Order, provided the Bureau issues an Adopting Order
       adopting the Consent Decree without change, addition, modification, or
       deletion. Redflex shall retain the right to challenge Commission
       interpretation of the Consent Decree or any terms contained herein. If
       either Party (or the United States on behalf of the Commission) brings
       a judicial action to enforce the terms of the Adopting Order, neither
       Redflex nor the Commission shall contest the validity of the Consent
       Decree or the Adopting Order, and Redflex shall waive any statutory
       right to a trial de novo. Redflex hereby agrees to waive any claims it
       may otherwise have under the Equal Access to Justice Act, 5 U.S.C. S:
       504 and 47 C.F.R. S: 1.1501 et seq., relating to the matters addressed
       in this Consent Decree.

   11. Invalidity. In the event that this Consent Decree in its entirety is
       rendered invalid by any court of competent jurisdiction, it shall
       become null and void and may not be used in any manner in any legal
       proceeding.

   12. Subsequent Rule or Order. The Parties agree that if any provision of
       the Consent Decree conflicts with any subsequent rule or Order adopted
       by the Commission (except an Order specifically intended to revise the
       terms of this Consent Decree to which Redflex does not expressly
       consent) that provision will be superseded by such Commission rule or
       Order.

   13. Successors and Assigns. Redflex agrees that the provisions of this
       Consent Decree shall be binding on its successors, assigns, and
       transferees.

   14. Final Settlement. The Parties agree and acknowledge that this Consent
       Decree shall constitute a final settlement between the Parties. The
       Parties further agree that this Consent Decree does not constitute
       either an adjudication on the merits or a factual or legal finding or
       determination regarding any compliance or noncompliance with the
       requirements of the Act or the Commission's Rules and Orders.

   15. Modifications. This Consent Decree cannot be modified without the
       advance written consent of both Parties.

   16. Paragraph Headings. The headings of the Paragraphs in this Consent
       Decree are inserted for convenience only and are not intended to
       affect the meaning or interpretation of this Consent Decree.

   17. Authorized Representative. Each party represents and warrants to the
       other that it has full power and authority to enter into this Consent
       Decree.

   18. Counterparts. This Consent Decree may be signed in any number of
       counterparts (including by facsimile), each of which, when executed
       and delivered, shall be an original, and all of which counterparts
       together shall constitute one and the same fully executed instrument.

   _______________________________

   Kathryn S. Berthot

   Chief, Spectrum Enforcement Division

   Enforcement Bureau

   ________________________________

   Date

   ________________________________

   Karen Finley

   Chief Executive Officer and President

   Redflex Traffic Systems, Inc.

   ________________________________

   Date

   47 U.S.C. S: 302a(b).

   47 C.F.R. S:S: 2.803(a), 2.925, 15.19, 15.201 and 90.203.

   47 U.S.C. S: 154(i).

   47 C.F.R. S:S: 0.111, 0.311.

   47 U.S.C. S: 302a(b).

   47 C.F.R. S:S: 2.803(a), 2.925, 15.19, 15.201 and 90.203.

   See Letter from Kathryn S. Berthot, Chief, Spectrum Enforcement Division,
   Enforcement Bureau, to Karen Finley, President/CEO, Redflex Traffic
   Systems, Inc. (October 9, 2008) ("October 9, 2008 LOI").

   47 U.S.C. S: 302a(b); 47 C.F.R. S:S: 2.803(a), 2.925, 15.19, 15.201 and
   90.203.

   47 U.S.C. S: 302a(b).

   47 C.F.R. S:S: 2.803(a), 15.201 and 90.203.

   47 C.F.R. S: 2.925.

   47 C.F.R. S: 15.19.

   October 9, 2008 LOI.

   See Letter from Karen Finley, President/CEO, Redflex Traffic Systems,
   Inc., to Marlene H. Dortch, Secretary, Federal Communications Commission
   (November 10, 2008).

   Federal Communications Commission DA 08-2734

   2

   Federal Communications Commission DA 08-2734