Iteris Lane Departure Warning Technology Hits the Road in International Heavy Trucks

ANAHEIM, Calif.--Oct. 9, 2003--

Leading Heavy Truck Manufacturer Offers Iteris' Breakthrough Lane Guidance Technology As Aftermarket Option to Encourage Safe Driving in U.S. Truck Market

Iteris, Inc., the operating subsidiary of Iteris Holdings, Inc. (OTCBB:ITRSA)(OTCBB:ITRSB), today announced that International(R) Truck and Engine Corporation (International), the operating company of Navistar International Corporation , is offering Iteris' Lane Departure Warning System as an aftermarket option to its customers in the U.S. heavy truck market. International is the nation's largest commercial truck and mid-range diesel engine producer.

The Lane Departure Warning Systems are now available on International Class 8 vehicles as an aftermarket option that can be installed in new trucks at the Factory Modification Centers in Chatham, Ontario and Escobedo, Mexico. This decision supports the commitment by International to offer its customers advanced features that will enhance the safe operation of their trucks. It also follows the recent purchase of 38 International trucks by Logex Corp., a cryogenic liquid and compressed gases transportation company based in Orange, Calif., whose specifications included the installation of Iteris' Lane Guidance technology.

"International consistently examines every aspect of our equipment to ensure we're providing our customers with the most advanced technology to help drivers operate their vehicles more effectively," said Jordan Feiger, vice president and general manager, Heavy Vehicle Center, International Truck and Engine Corporation.

"We could not pass up the opportunity to offer our customers the ability to choose Lane Departure Warning technology on their new truck purchases."

The Lane Departure Warning System was developed by Iteris to address the nation's single largest cause of highway fatalities -- unintended lane changes caused by drowsy or inattentive drivers. Iteris' Lane Departure Warning System, the first of its kind to be available on large Class 8 trucks, is initially being offered for installation in International(R) 9200i models.

The Lane Departure Warning System uses a windshield-mounted camera that tracks the lane markings and provides "virtual" rumble strips anywhere there are lane markings. Using image recognition software and proprietary algorithms, the system monitors the relative position of the truck and if it unintentionally crosses the lane markings, the unit automatically emits a distinctive rumble strip sound on the right or left side depending on the direction of travel, alerting the driver to make a correction. Use of the truck's turn signals automatically overrides the system. The system also helps promote the use of turn signals and a keen sense of lane position.

"The losses incurred in accidents are often staggering and affect not only the trucking company itself, but involve people, equipment, cargo and lost time. As a company, we are committed to designing and building the kind of safety technology that will really make a difference with today's drivers and help them prevent unintentional, but potentially fatal accidents," said Bill Patrolia, director of sales for the North American truck market for Iteris. "We believe International's decision to offer our Lane Departure Warning technology in its trucks is further validation of the importance of this safety advancement."

Iteris' Lane Departure Warning technology has been successful in the European commercial truck market since 2000. International becomes the latest commercial vehicle OEM to offer the technology as an aftermarket option.

International Truck and Engine Corporation

International Truck and Engine Corporation is the operating company of Navistar International Corporation . The company produces International(R) brand commercial trucks, mid-range diesel engines and IC brand school buses and is a private label designer and manufacturer of diesel engines for the pickup truck, van and SUV markets. With the broadest distribution network in North America, the company also provides financing for customers and dealers. Additionally, through a joint venture with Ford Motor Company, the company builds medium commercial trucks and sells truck and diesel engine service parts. Additional information is available at www.internationaldelivers.com.

About Iteris

Iteris Inc., is a majority owned subsidiary of Iteris Holdings Inc., and is a leading provider of outdoor machine vision systems and sensors that optimize the flow of traffic and enhance driver safety. It has combined outdoor image processing, traffic engineering, and information technology to offer a broad range of transportation and safety solutions. Iteris Holdings and Iteris Inc. are headquartered in Anaheim, California. Investors are encouraged to contact us at 714-774-5000, or at www.iteris.com.

Important Notice

This news release contains statements that may be deemed to be forward-looking. These forward-looking statements include statements about a new customer. These forward-looking statements speak only as of the date hereof and are based upon the information currently available to us at this time. Such information is subject to change, and we 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: the acceptance and adoption of the our products by this customer, market acceptance of the product by the end user market, the availability of components from suppliers and strategic partners, and such other factors identified in the Iteris Holdings (formerly Odetics Inc.) 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 Iteris Holdings (formerly Odetics, Inc.) most recent SEC filings.