Goldman Sachs Invests in American Traffic Solutions

Business Wire, Sept 25, 2008

SCOTTSDALE, Ariz. -- American Traffic Solutions ("ATS") announced today that Goldman Sachs has become its first institutional investor. Goldman Sachs was invited to invest in ATS as a minority shareholder to support the explosive growth in the company's photo traffic safety enforcement and electronic toll payment businesses, according to Jim Tuton, president and CEO of ATS. ATS is the largest independent, privately held company providing photo traffic enforcement services in North America. The company's 2007-08 quarterly compound revenue growth rate exceeded 80 percent.

Terms of the sale were not disclosed, but Tuton reported that Goldman Sachs will be represented on ATS' board of directors.

Jim Tuton founded the American photo traffic enforcement industry in 1987 when he introduced "photo radar" to the small community of Paradise Valley, Arizona, in the Phoenix area. Photo traffic enforcement is now used in approximately 300 communities in 25 American states and the District of Columbia. ATS currently serves more than 125 municipalities in 18 states, the District of Columbia and the Province of Alberta, Canada. New York City, Philadelphia, Washington, D.C., Houston, Fort Worth, Phoenix, St. Louis, Seattle and San Diego are all ATS customers.

Budget-constrained communities across the country are turning to photo safety enforcement because it improves public safety at no cost to the local police departments, explained Tuton. According to a 2007 study by the Insurance Institute of Highway Safety (www.iihs.org), red-light cameras reduced violations by as much as 96 percent in Philadelphia. St. Louis experienced a 49 percent decrease in violations. And from 1994-2005, red-light-running violations decreased 73 percent in New York City.

"Cash-strapped cities are finding it more and more difficult to deploy adequate police resources to fight serious crime," said Tuton. "Our cameras handle the routine traffic enforcement duties so officers can spend more time in their communities. We help cities improve public safety by providing solutions that also generate needed revenue by shifting the financial burden from the taxpayers to the violators."

"Goldman Sachs was attracted to the industry and then identified ATS as a leader with tremendous growth potential, an exemplary track record and a high-quality management team," said Raheel Zia, vice president in the principal investment area at Goldman Sachs. "ATS has been at the forefront of the photo traffic safety enforcement industry with the company's speed and red-light camera programs. The company's worldwide expansion into electronic toll collection and transportation-related commercial services present attractive growth opportunities."

"We have grown ATS from a small, single-client company in 1987 to a company with more than 125 customers," explained Tuton. "We have been profitable every year since we started the business. This was accomplished with a national team of 425 employees and managers and without any private equity investment." Tuton noted that the company's client base grew by nearly 100 percent in 2007.

"Our relationship with Goldman Sachs will provide a strong platform and access to capital resources that will enable ATS to continue on our amazing growth trajectory," Tuton continued. "Goldman Sachs is one of the largest and most prestigious investment companies in the world. They are a terrific fit for ATS because they share our culture and mission of serving state and local governments with needed operational and financial services."

About ATS:

American Traffic Solutions (ATS) is a leading provider of technology and business solutions for traffic safety and electronic toll collection programs worldwide, including PlatePass[R], which is an automated electronic toll payment service that enables Avis, Budget and Hertz customers to use high speed, cashless electronic toll lanes. ATS is a private corporation, which serves more than 125 municipalities and government agencies. ATS is the largest provider of photo traffic enforcement programs to America's big cities with active programs in New York City, Philadelphia, Washington, D.C., St. Louis, San Diego and Seattle; Houston, Fort Worth, Irving and Arlington, Texas; New Orleans and Baton Rouge, Louisiana; and Phoenix, Tucson, Mesa, Glendale and Scottsdale, Arizona. ATS also serves Canada's largest digital red-light camera and speed enforcement program in Calgary, Alberta. The company is headquartered in Scottsdale, Ariz. For additional information visit: www.redlightcamera.com or www.atsol.com.

About Goldman Sachs:

Goldman Sachs is a leading global investment banking, securities and investment management firm that provides a wide range of services worldwide to a substantial and diversified client base that includes corporations, financial institutions, governments and high net worth individuals. Founded in 1869, it is one of the oldest and largest investment banking firms. The firm is headquartered in New York and maintains offices in London, Frankfurt, Tokyo, Hong Kong and other major financial centers around the world.