Iteris Awarded Major Contract from City of Houston for Its Vantage Systems; Video Detection Systems to Improve Traffic Flow and Reduce Driver Delays

ANAHEIM, Calif.--June 22, 2004--Iteris Inc., the operating subsidiary of Iteris Holdings Inc. (OTCBB:ITRSA)(OTCBB:ITRSB), today announced that it has received a significant order for its Vantage video detection systems from the city of Houston for deployment in 146 of the city's intersections. The order was received through Iteris' distributor, Texas Highway Products Ltd., and includes the Vantage Edge2 processor combined with both wired and wireless cameras.

The Vantage systems will be used by the city to provide traffic flow information to improve traffic signal timing and reduce delays. The city of Houston previously ordered Vantage systems for deployment in 40 of the city's other intersections. Vantage is one of the leading vehicle detection systems in the country. It is a non-intrusive video-based system used to replace in-pavement inductive loops for traffic signal control and traffic data collection applications. The Vantage systems are used to optimize the operation of traffic signals, reducing delays and congestion for the motoring public. Vantage video images can also be transmitted to remote traffic control centers for surveillance or homeland security applications.

"The city of Houston has experienced some challenges in keeping inductive loops operational," said Darold Cherry, CEO of Texas Highway Products Ltd., the distributor for Vantage systems in Texas. "The city is looking to improve traffic flow on its major streets through the use of the Vantage systems."

Iteris and Texas Highway Products Ltd. already supply Vantage systems to several other cities in the state of Texas, including San Antonio and Austin.

"This order underscores the growing need for our Vantage systems. Iteris is pleased that another major city has recognized the benefits of video detection," said Greg McKhann, senior vice president of roadway sensors for Iteris. "The city of Houston will not only benefit from improved lifecycle costs, but also from Vantage's flexibility, ease-of-use and the availability of video images for surveillance."

Iteris manufactures and sells its Vantage systems for traffic control applications, giving traffic managers tools to mitigate roadway congestion by modifying traffic signal timing or detecting incidents more quickly. Vantage also offers data collection software for highway management systems. Over 25,000 Vantage sensors have been deployed by hundreds of agencies in 49 states, as well as Asia, Latin America, Europe and the Middle East. The product is currently sold through a network of over 20 independent dealers in North America, Asia, Europe and South America.

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. have headquarters in Anaheim. Investors are encouraged to contact the company at 714-774-5000, or at www.iteris.com.

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