Three Commercial Truck Fleets Specify Iteris Technology on New Truck Purchases; 12 U.S. Fleets Have Now Deployed Iteris Lane Departure Warning Systems

ANAHEIM, Calif.--June 2, 2005--Iteris Inc. (AMEX:ITI), the leader in the development of vision-based technology that enhances driver safety, today announced that its Lane Departure Warning (LDW) system will be installed on new trucks purchased by three U.S. commercial truck fleets. Conover, N.C.-based Piedmont Express, Myrtle Beach, S.C.-based New South Companies Inc., and another large national fleet, have all purchased new trucks from Freightliner with specifications that include the installation of Iteris' LDW system.

Piedmont Express has been evaluating trucks with LDW since last fall. The company has a fleet of approximately 80 trucks and plans to specify LDW on all new truck orders. New South Express is a private fleet owned by New South Companies Inc., one of the 10 largest producers of pressure-treated lumber in the U.S., which operates lumber manufacturing facilities in South and North Carolina. The company operates over 50 tractor-trailers in its fleet and is a major back haul service provider. The company specified LDW on 17 new trucks after testing a sample in November 2004. The third fleet is a liquid gas and chemical hauler with approximately 600 tractors that will be installing the LDW systems in more than 200 new Freightliner trucks as part of an order that runs through 2006.

"We are pleased to be selected by these new fleet customers to enhance the safe and reliable operation of their trucks," said Bill Patrolia, director of truck sales for Iteris. "Each of these companies clearly understands the importance of this advanced technology and what it can do for the safety of their trucks and their bottom line performance. We're proud to be part of this effort to make their trucks and, ultimately, highways safer."

"We are a great example of a company that already has a great safety record but isn't willing to take that history for granted," said Debbie Sand, vice president of New South Express. "Consequently, we purchased the Iteris LDW systems as an investment in our drivers' personal safety plus that of the motoring public sharing the road with us. I also think this will be a good recruiting tool in attracting future quality drivers. They will be safer in our trucks than in one of our competitors' that doesn't have the Iteris LDW system."

Iteris' LDW system was the first product of its kind to be available on commercial trucks in the U.S. and Europe. The technology is currently in use on over 10,000 commercial trucks in the U.S. and Europe, with more than a billion kilometers traveled. The addition of Iteris' LDW system in these three fleets brings the total number of fleets using Iteris' LDW system to 12 nationwide with 35 companies currently conducting field tests.

LDW is designed to prevent inadvertent lane change accidents caused by drowsiness, fatigue, or distraction. The system uses a windshield-mounted camera that tracks lane markings using image recognition software and monitors the relative position of the truck within the lane. If the truck inadvertently crosses the lane markings, the system automatically emits a distinctive rumble strip sound on the appropriate side depending on the direction of travel, 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 us at 714-774-5000, or at www.iteris.com.

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