DaimlerChrysler TV Ad Highlights Iteris Lane Departure Warning System

ANAHEIM, Calif.--Oct. 1, 20034, 2003--Iteris, Inc., the operating subsidiary of Iteris Holdings, Inc. (OTCBB:ITRSA)(OTCBB:ITRSB), today announced that DaimlerChrysler is highlighting Iteris' Lane Departure Warning technology in its new "Our Vision for Accident Free Driving" television ad. The lane departure warning system was jointly developed by DaimlerChrysler and Iteris, and is currently available as an option on Mercedes Actros trucks. The start of series production and first unit shipment to DaimlerChrysler commenced June 2000. Lane departure warning systems are now in use on trucks manufactured by Mercedes, Freightliner, International, and another European truck manufacturer. The Iteris lane departure warning system is a cost-effective tool to increase driver awareness and reduce accidents. By detecting unintentional departures, Iteris lane departure warning technology gives drivers more information at a time when they may be distracted or otherwise unaware of the impending departure.

Lane departures are a serious problem with serious consequences. Statistically, lane departures were listed as a factor in 44% of all the fatal accidents in the United States in 2002. The Iteris solution to this serious problem, lane departure warning, is part of the AutoVue(TM) family of products intended to complement the way drivers operate their vehicles.

"Automotive vision systems are now becoming a reality as can be seen by inclusion of our technology in DaimlerChrysler's advertising," said Francis Memole, Iteris vice president of marketing and business development. "We see a bright future for technologies like AutoVue," Memole concluded.

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 product. 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 our products by our customers, market acceptance of the product by the end user market, the availability of components from suppliers and strategic partners to facilitate the manufacture of the product, 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.