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This paper presents a real-time highway monitoring system for tracking and classification of vehicles with the computation of traffic flow parameters from live video streams. The proposed system robustly detects and tracks vehicles during daylight hours and accurately classifies them into 8 different types by leveraging tracking information. The system is able to process video continuously over long time periods, accumulating large volumes of tracking data to build daily highway models consisting of the traffic flow parameters, density, flow, and speed. These daily models are used to categorize the speed profile of live traffic.