Iteris Lane Departure Warning System Receives Praise from Commercial Truck Drivers in U.S. and Europe

ANAHEIM, Calif.--Sept. 2, 2004--

Survey Results Indicate LDW Technology Makes Drivers More Alert; Can Prevent Accidents

Iteris, Inc., a subsidiary of Iteris Holdings, Inc. (OTCBB:ITRSA)(OTCBB:ITRSB), today released the results of its recently commissioned International Driver Satisfaction Study for the deployment of its Lane Departure Warning (LDW) system in commercial trucks. The study, conducted over a six-month period with commercial truck drivers in both the U.S. and Europe, indicates that they consider Iteris' LDW system a valuable safety feature. Over 140 drivers in the U.S. and 100 in Europe responded to the comprehensive survey.

"We are very pleased with the results of the LDW study. The favorable feedback from drivers further underscores why LDW technology is at the forefront of commercial truck safety," said Bill Patrolia, director of North American truck sales.

Iteris conducted the study in an effort to gauge market receptivity as well as the effectiveness of its LDW system from drivers using the system first-hand on a regular basis. With more than 8000 Iteris lane departure warning systems installed in commercial trucks in the U.S. and Europe, driver responses were overwhelmingly positive, with many citing specific examples of how the system made them more alert and assisted in potentially dangerous situations.

"If you are doing your job and driving safely, you won't even know the system is in your truck. If you make a mistake and start out of your lane, you will be warned," said John Cole, driver/trainer for FirstFleet, a full-service truckload carrier based in Murfreesboro, Tennessee.

"This system has encouraged me to pay closer attention to the lanes. In bad weather and fog the system is also extremely helpful," added Bruce Higginbotham, a veteran truck driver for North Carolina-based, Cargo Transporters.

With the National Highway Transportation Safety Administration (NHTSA) highway fatality figures on the rise, and many government agencies in Europe conducting campaigns to promote driver safety, the importance of positive feedback from drivers currently using active safety systems such as Iteris' LDW technology is critical to increasing corporate and consumer awareness and, ultimately, demand for intelligent vehicle safety systems.

Below is a brief summary of U.S. data collected*:

-- 98% believe the system can prevent accidents

-- 92% believe the system is a valuable safety feature

-- 71% say the system has made them safer drivers

-- 80% normally drive with the system enabled

-- 97% are satisfied or very satisfied with the system

Below is a brief summary of European data collected*:

-- 93% are satisfied or very satisfied with the system

-- 62% recall situations where the system assisted them. This number increases with more experience driving with the system.

-- 83% drive with the system enabled regularly or in relevant situations

-- 70% say the system warned while drowsy, distracted, not concentrating or driving in fog

-- 83% said the warning comes at the right time providing enough notice to correct

Iteris' Lane Departure Warning System was the first product of its kind to be available on large Class 8 trucks in the U.S. and Europe. The 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 system 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.

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, Calif. Investors are encouraged to contact us at 714-774-5000, or at www.iteris.com.

Safe Harbor Statement under the Private Securities Litigation Reform Act of 1995: This release may contain forward-looking statements, which speak only as of the date hereof and are based upon our current expectations and the information available to us at this time. Words such as "believes," "anticipates," "expects," "intends," "plans," "seeks," "estimates," "may," "will" and variations of these words or similar expressions are intended to identify forward-looking statements. These statements are subject to change and we undertake no obligation to revise or update publicly any forward-looking statements for any reason. These statements are not guarantees of future performance and are subject to certain risks, uncertainties and assumptions that are difficult to predict. Therefore, our actual results could differ materially and adversely from those expressed in any forward-looking statements as a result of various factors.

Important factors that may cause such a difference include, but are not limited to, the market acceptance of our technologies and of the products that incorporate our technologies, automotive production schedules and agendas; our ability to specify, develop, complete, introduce, market and transition our products and technologies to volume production in a timely manner; the timing and successful completion of customer qualification of our products and the risks of non-qualification; the potential unforeseen impact of product offerings from competitors and other competitive pressures; and the general economic and political conditions and specific conditions in the markets we address, including the general economic slowdown and volatility in the automotive sector. Further information on Iteris Holdings, Inc., including additional risk factors that may affect our forward looking statements, is contained in our Annual Report on Form 10-K, our Quarterly Reports on Form 10-Q, our Current Reports on Form 8-K and our other SEC filings that are available through the SEC's website (www.sec.gov).

* Additional study results available upon request