Iteris Delivers Its 50,000th Camera System for the Transportation Industry

ANAHEIM, Calif.--June 16, 2005--Iteris Inc. (AMEX:ITI), the leader in the development of vision-based technology that enhances driver safety, announced that it has now delivered over 50,000 camera systems to its transportation industry customers. These camera systems include both the company's Vantage(TM) product shipments for traffic control and the AutoVue(TM) product shipments for automobiles and trucks.

"This significant product delivery milestone validates our position as the leading provider in Intelligent Transportation Systems applications utilizing proprietary outdoor image processing technology," commented Jack Johnson, president and CEO of Iteris. "It also demonstrates our ability to utilize our core technology as a foundation for multiple products addressing different vertical markets in the transportation industry."

Iteris manufactures and sells its Vantage systems for traffic control applications, giving traffic managers tools to mitigate roadway congestion by modifying traffic signal timing or detecting incidents more quickly. Vantage also offers data collection software for highway management systems. Vantage cameras have been deployed by hundreds of agencies in 49 states, as well as Asia, Latin America, Europe, and the Middle East. The product is currently sold through a network of over 20 independent dealers in North America, Asia, Europe, and South America.

The Iteris AutoVue Lane Departure Warning (LDW) system uses a vision-based camera and proprietary software algorithms to monitor the lane markings in front of the vehicle. If a driver makes an unintentional lane departure (without using a turn signal), the system automatically emits an audible warning that alerts the driver to take corrective action. The LDW system was first installed by Infiniti last fall as an option on its FX crossover SUVs. Most recently, it became available as an option on the all-new 2006 Infiniti M mid-size luxury sedans.

The management team at Iteris believes the deployment of outdoor image processing technology will become ubiquitous for both traffic control and automotive safety applications, and believes the company is positioned to garner a significant share of this market.

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," "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 deployment of our 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 production schedules of some of our customers; 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).