Iteris Selected for $2.1 Million Services Contract by Northern Nevada; Continues to Position Iteris as a Leader in BRT Planning, Design and System Integration

ANAHEIM, Calif.--April 26, 2005--Iteris Inc. (AMEX:ITI), a leader in Intelligent Transportation Systems (ITS), today announced that it was awarded a $2.1 million contract by the Regional Transportation Commission (RTC) of Washoe County, Nev., for the Virginia Street Bus Rapid Transit (BRT) in Reno, Nev. Planning and preliminary engineering is anticipated to begin by June 2005. Detail design is envisioned to begin in year 2008 subject to Federal Transit Administration (FTA) project and funding approval.

BRT is a creative and emerging public transit solution. It combines ITS technologies such as Automatic Vehicle Location (AVL), Passenger Information and Collision Avoidance systems, with geometric solutions such as dedicated bus lanes and traffic signal priority for buses. A recent study sponsored by FTA revealed that BRT, when compared to rail transit, reduced costs and significantly improved the passenger ridership in several metropolitan cities across the U.S.

"BRT is an excellent approach to improve the mobility of transit users and is being rapidly adopted by many transit agencies around the country," said Abbas Mohaddes, executive vice president for Iteris Inc. "Through the application of ITS technologies, geometric and operational improvements, BRT is proven to be an excellent transportation investment. RTC in Washoe County has recognized both the positive mobility improvements and economic benefits of BRT, which will be one of the alternatives to be studied. Iteris is excited to participate in this advanced transit system, and we believe this is an exceptional demonstration of Iteris' transit management capabilities." Iteris is a leader in BRT planning, design and system integration, having performed on several such contracts throughout the U.S.

The Iteris contract includes completion of an alternative analysis as well as the preliminary engineering for the locally preferred alternative. Virginia Street is a major north/south 12-mile arterial that serves many business and residential traffic generators in the Reno/Sparks metropolitan area in Nevada.

"The RTC of Washoe County is pleased to announce the selection of the Iteris team for development of the environmental assessment for National Environmental Policy Act (NEPA) clearance and preliminary engineering for the Virginia Street corridor," said Howard Riedl, senior civil engineer and Virginia Street Corridor project manager. "Iteris offers RTC considerable experience and expertise in the relatively new BRT transit field. We are excited about this project and look forward to working with Iteris on the development of a locally preferred alternative that will meet the needs of Reno and its residents for the future."

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 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," "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 success and timing of this project and our future prospects.

Important factors that may cause such a difference include, but are not limited to our ability to specify, develop and complete our technologies in a timely manner; budget constraints and changing governmental priorities; the timing and successful completion of this contract and the risks of nonqualification; the potential unforeseen impact of product offerings from competitors and other competitive or governmental pressures; and the general economic and political conditions and specific 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).