Iteris Secures Two Major Contracts with International Commercial Truck Manufacturers; Two of the World's Largest Commercial Truck OEMs to Offer Iteris' Lane Departure Warning Technology

ANAHEIM, Calif.--April 21, 2005--Iteris Inc. (AMEX:ITI), the leader in the development of vision-based technology that enhances driver safety, today announced that two more of the world's largest manufacturers of commercial trucks will offer its Lane Departure Warning (LDW) system in their heavy commercial trucks.

A new European-based manufacturer will begin installation of LDW systems this month as an option on its line of heavy commercial vehicles and Iteris expects to see revenue contributions from sales to this customer in the current year. According to this customer they manufacture approximately 20,000 heavy trucks each year. The other new manufacturer, an Asian-based OEM, is expected to begin taking delivery of LDW systems in late 2006 for its line of heavy trucks. This customer intends to incorporate LDW as part of a standard driver assistance package on approximately 5,000 to 10,000 of its heavy trucks produced each year.

"We are very pleased that our LDW system has been selected by these two new major OEMs," said Jack Johnson, president and CEO for Iteris. "Our objective is to bring our industry-leading crash avoidance technology to all of the major truck manufacturers worldwide and this is another important step toward that goal. With the addition of these two new truck OEM customers we continue to dominate the heavy truck market for our LDW systems."

Iteris Inc. is already the only qualified supplier for Mercedes, MAN, Freightliner and International trucks and is currently in use on over 12,000 commercial trucks in Europe and North America.

The company believes its current OEM customer base represents a greater than 50 percent market share of the roughly 400,000 to 500,000 heavy trucks produced each year in Europe and North America.

Iteris' LDW system, the first of its kind to be available on large Class 8 trucks, uses a vision-based camera and proprietary software algorithms to monitor the lane markings in front of the truck and its relative lane position. If the truck inadvertently leaves the lane, the system automatically emits a distinctive rumble strip sound, alerting the driver to make a correction.

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," "should," "seeks," "estimates," "may," and variations of these words or similar expressions are intended to identify forward-looking statements. These statements include, but are not limited to the timing of the introduction of trucks incorporating out technologies and the related sales of our products. 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 truck production schedules and agendas; the market awareness and acceptance of our technologies and of the products that incorporate our technologies, 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 impact of completing products and technologies; and general economic and political conditions in the markets we address. 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).