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In this study, a simple and effective method is proposed for segmenting alphanumeric and numeric characters on vehicle license plates and recognizing the segmented characters. The proposed approach is basically based on template matching technique. Features used for matching are obtained by scanning the segmented characters from left-to-right, right-to-left, top-to-bottom, and bottom-to-top. The features extracted in this way reveals the fact that how a character is moving and changing along its four-side. The character recognition is accomplished by using this information of the character. Experiments done show that successful results are obtained.