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Intelligent Transportation Systems (ITS) aim at ameliorating the quality of urban traffic by controlling and guiding traffic flow based on the acquisition and evaluation of real-time traffic information. This paper puts forward a new method which makes use of Inter-Vehicle Communication to collect traffic information. Also, we have achieved dynamic route guidance at a typical branch road scene. Based on these methods, we design a prototype system of Intelligent Vehicle Infrastructure Cooperation System (IVICS). Moreover, this paper constructs a simulation platform using Paramics, MySQL, Matlab and NS2. All the methods and conclusions have been verified on this system.