Iteris and Valeo Technology Honored by Scientific American Magazine; Leading Business and Technology Publication Recognizes Value of Innovation That Can Help Save Lives

ANAHEIM, Calif.--Jan. 2, 20050, 2005--Iteris Inc. (AMEX:ITI), a leader in the development of vision-based technology that enhances driver safety, today announced that its AutoVue Lane Departure Warning (LDW) system, jointly developed with Valeo SA for Nissan, has been recognized as one of 50 leading technology innovations in the 3rd Annual "Scientific American 50."

The editors of Scientific American magazine included the LDW system, which has been deployed by Nissan, in a diverse list of companies that exhibited outstanding technology leadership and innovation in the areas of research, business and policymaking in 2003-2004. The LDW system is the first-of-its-kind to be available on passenger cars in the United States through a global partnership between Iteris and Valeo SA.

"We are honored to be selected for this distinction by the editorial board at Scientific American," said Jack Johnson, CEO of Iteris Inc.

"This technology is a key system for assisting drivers and passengers from today's hazards," added Thierry Morin, chairman and CEO of Valeo SA. The latest NHTSA figures show that inadvertent lane departures contribute to over 40 percent of fatal accidents in the United States.

"The industry recognition Iteris has received over the past year is a further testament that our AutoVue Lane Departure Warning system is a significant technology advancement that we believe will have a favorable impact on the lives of people everywhere for years to come," concluded Johnson.

The LDW system uses proprietary software algorithms and advanced imaging technology to create a cost-effective system that audibly warns drivers when their car or truck is unintentionally drifting out of its lane.

Scientific American was established in 1845 and is written for leaders in business and technology. The publication synthesizes science, technology and business into the clearest view of the future. It is known for reporting on important ideas early - often well before other media recognize their importance. Each issue identifies and delivers the latest developments in biotechnology and information science, also with business-critical R&D across a broad range of fields.

The LDW technology is now available as part of an option package on 2005 models of Infiniti's FX crossover sport utility vehicle, which recently began arriving in dealerships nationwide. The LDW system is also expected to be available as part of an option package on the next generation M45 performance luxury sedan, which is scheduled to go on sale in Spring 2005.

The article in Scientific American, as well as many others focused on Iteris and its technology, are available for review on the company's Web site at www.iteris.com under "Iteris in the Media."

About Valeo

Valeo is an independent industrial group fully focused on the design, production and sale of components, integrated systems and modules for cars and trucks. Valeo ranks among the world's top automotive suppliers. The Group has 129 plants, 65 R&D centers, nine distribution platforms and employs 70,200 people in 26 countries worldwide.

About Iteris Inc.

Iteris Inc. 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 Inc. has headquarters in Anaheim. Investors are encouraged to contact the company 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," "can" and variations of these words or similar expressions are intended to identify forward-looking statements. These statements include, but are not limited to, statements about the roll-out and market acceptance of our LDW technology, the production schedules and automotive standards and our future prospects. 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; the timing and successful completion of customer qualification of our products and the risks of non-qualification; market acceptance of our LDW system and the vehicles that incorporate our systems; our ability to specify, develop, complete, introduce, market and transition our products and technologies to volume production in a timely manner; 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 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 Web site (www.sec.gov).