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This paper describes the technique of extracting vehicle license-plate and interpretation of the registration code from a captured image in real-time. The developed algorithm is divided into three stages: extraction of vehicle license plate from captured image, segmentation of license plate components and recognition of the license plate characters for interpretation of vehicle registration code. A control algorithm is also developed to choose between the recognition processes and reconstruct the registration code from recognized characters. Most of the processes are implemented using mostly logical operations to achieve lower execution time.