Distracted Drivers Beware: Iteris' Lane Departure Warning System to Address AAA's Recent Findings; AutoVue Helps Reduce Accidents and Save Thousands of Lives

ANAHEIM, Calif.--Aug. 1, 20033, 2003--Iteris Inc., a subsidiary of Odetics Inc. (OTC BB:ODETA), today acknowledged the American Automobile Association's (AAA) recent findings on driver distractions and announced the only available solution. It is the automotive industry's first-ever, mass-produced Lane Departure Warning System -- anticipated to be available in passenger cars in just 12-18 months. Iteris believes that the Lane Departure Warning System will help reduce the more than 1.5 million automobile accidents caused by distracted or drowsy drivers every year in the United States and address the nation's single largest cause of automotive-related highway fatalities -- unintended lane changes.

With New Jersey's State Assembly passing "Maggie's Law" on June 23, a new standard has been set that holds drivers accountable. The new bill imposes hefty fines and even homicide charges against any driver who falls asleep behind the wheel as a result of being awake more than 24 hours. The AutoVue system is a proven step in the right direction as the only preventative safety device that can help avoid traffic accidents resulting from drowsy or distracted drivers.

The Iteris Lane Departure Warning System is a small, integrated unit consisting of a camera, onboard computer and software that easily attaches to the windshield, dashboard or overhead -- out of the driver's sight. The system is designed to alert drivers if they are drifting out of their lane, giving them time to correct the situation in a controlled manner. The Lane Departure Warning System is programmed to recognize the difference between the road and lane markings.

"We stand by AAA's recent survey and agree that the issue of driver distraction is a major concern," said Francis Memole, vice president of marketing and business development. "The AutoVue Lane Departure Warning System is the first preventative solution to the leading cause of highway fatalities already proven in the heavy truck market."

The unit's camera tracks visible lane markings and continually feeds the information directly into the unit's computer, which combines this data with the vehicle's speed. Using image recognition software and Iteris proprietary algorithms, the computer can predict when a vehicle begins to drift toward an unintended lane change. When this occurs, the unit automatically emits the commonly known rumble strip sound, alerting the driver to make a correction before danger occurs. By using the turn signal, a driver indicates to the system that a planned lane departure is intended which disables the alarm.

"Iteris' Lane Departure Warning System is a breakthrough product for the automotive industry and we believe it has the potential to be the most significant safety innovation for passenger cars since the advent of the seatbelt," said Memole. "What makes our product effective is its preventative nature. It not only notifies a driver that they have drifted from their lane, it warns them early enough to give them time to react to a situation before it's too late."

About Iteris Inc.

Iteris, a subsidiary of Odetics, is the technology leader in Systems and Sensors that optimize the flow of traffic and enhance driver safety. Iteris has combined outdoor image processing, traffic engineering, and information technology to offer a broad range of transportation and safety solutions. If you are interested in viewing more information on Iteris, visit the Web site at: www.iteris.com.

About Odetics

Odetics products address the management needs of the transportation and security industries. Odetics is a market leader for video-based sensors used for surface transportation and is a developer of integrated systems for facility security and trace detection of dangerous chemicals and explosives. Odetics has headquarters in Anaheim. Investors are encouraged to contact the company at 714-774-5000, or at www.odetics.com.

Important Notice

This news release contains statements that may be deemed to be forward-looking. These forward-looking statements include statements or references about the benefits surrounding a restructuring of the company's facility leasing commitments. These forward-looking statements speak only as of the date hereof and are based upon the information currently available to the company at this time. Such information is subject to change, and the company will not necessarily inform you of such changes. Actual results could differ materially from those projected in the forward-looking statements as a result of risk factors such as: costs and unanticipated expenditures associated with the new lease, the company's ability to continue to restructure its business model to improve its operating results, and such other factors identified in the Odetics' Annual Report on Form 10-K and Quarterly Reports on Form 10-Q.

Investors are strongly encouraged to review the risk factors set forth in Odetics' most recent SEC filings.