Iteris Awarded City of Fountain Valley Intelligent Transportation Systems Project

ANAHEIM, Calif.--June 8, 2004--Iteris, Inc., a subsidiary of Iteris Holdings, Inc. (OTCBB:ITRSA)(OTCBB:ITRSB), today announced it has been selected by the City of Fountain Valley, California as the consultant to lead the city's Intelligent Transportation Systems (ITS) Technology Upgrade, Deployment and Integration project.

This project, worth $544,000 to Iteris, represents the city's second phase of ITS deployments which began in 2002. It includes the implementation of an additional twenty Closed Circuit Television Cameras (CCTV) cameras, 23 new Model 2070 traffic signal controllers in new Type 332 cabinets and the continued deployment of the citywide fiber optic communication system. The fiber optic communication system will support the traffic signal controllers, CCTV cameras and the existing Vantage (by Iteris) video detection cameras.

This project will complete the city's traffic control systems migration to a new system interfaced with Model 2070 advanced traffic signal controllers at all city intersections, which will help improve the overall Traffic Synchronization, as well as monitoring, operation and maintenance of the system. The traffic signal system resides at the city's traffic management center (TMC) located at the City Hall, which will also receive operational enhancements as part of this project.

"We're pleased to have been selected by the City of Fountain Valley to provide this state-of-the-art ITS system," stated Abbas Mohaddes, Iteris executive vice president. "The City of Fountain Valley is a leader in the use of ITS and quickly realized the benefits of engaging a full-service ITS organization. We've enjoyed our relationship with the city and we look forward to the successful completion of the next level in this advanced ITS project."

"The City of Fountain Valley is pleased to announce the selection of the Iteris team for the design, construction support, software development and system integration of our ITS Technology Upgrade, Deployment and Integration project. Iteris will continue efforts to upgrade the city's traffic signal system Model 2070 advanced traffic signal controllers, CCTV cameras and a state-of-the-art fiber-optic communication system citywide. The twelve-month schedule includes design, construction support and integration," said Temo Galvez, project manager for the City of Fountain Valley.

About Iteris, Inc.

Iteris, Inc. is a majority-owned subsidiary of Iteris Holdings, Inc. and is a leading provider of outdoor vision systems and sensors that optimize the flow of traffic and enhance driver safety. Iteris combines 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.