This paper presents in detail all the relevant components required for the design of a real-time traffic Intelligent Transportation System (ITS). Specifically, the paper addresses analytically hardware and software issues such as the image acquisition module, the image processing routines, the OCR engine using Artificial Neural Network (ANN) technology and the database management system (DBMS). The image-processing algorithm, which is the software core of the system, works in different natural backgrounds, angles of vision and a wide range of illumination conditions and additionally it is plate-format independent. Following image processing, the OCR engine presented high level of accuracy and the total performance of the identification system is 92,5% on the basis of ITS standards. The benefits of such systems and their potential applications are discussed in the final section, where situations in which non-trivial problems can be solved by using such an artificial vision system are highlighted.
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