GAITHERSBURG, Md., March 29 -- Optelecom, Inc. reports that it has received an initial contract in support of the Delaware Department of Transportation's traffic monitoring and control program. The Company will provide equipment, including MPEG-2 digital video components, for installation at a beta test site. The system configuration is designed to take advantage of compressed, digitized video signals in a switched network environment to facilitate transmission and distribution of real-time video monitoring to various user agencies. The Company also announced it has received contracts from the Cities of Tallahassee, Florida, and El Paso, Texas. The Tallahassee contract is an add-on agreement in the amount of $287,000 for additional Optelecom data modems and other equipment supporting video and data communications for traffic monitoring and control. The El Paso contract, valued at $160,000, is primarily for data and communications components, and also for traffic control.