Iteris Vantage Product Sales since Inception Reach $100 Million; Worldwide Increases in Traffic Congestion Continue to Drive Demand for Vantage Product

ANAHEIM, Calif.--July 11, 2005--Iteris Inc. (AMEX:ITI), a leader in the development of vision-based technology that optimizes traffic flow and enhances driver safety, today announced that cumulative sales for its Vantage(TM) Video Detection System product line have reached the $100 million mark.

The Vantage products were first introduced in the late 90s and have grown to become one of the nation's leading vehicle detection systems being used by public agencies in 48 of 50 states and in 10 other countries. Vantage uses proprietary video image processing technology to detect the presence of vehicles on roadways. These non-intrusive video-based systems are replacing inductive loops at intersections and for other roadway applications.

The Vantage systems are used to optimize the operation of traffic signals and other traffic management systems which help reduce delays and congestion for the motoring public. In addition to helping reduce congestion, Vantage video images can also be transmitted to remote traffic control centers for surveillance and homeland security applications.

"We are very pleased to announce this significant milestone in the growth and evolution of our Vantage business," said Greg McKhann, senior vice president and general manager, roadway sensors for Iteris. "As traffic congestion increases around the world, the demand for vehicle detection solutions continues to grow. Government agencies addressing congestion often turn to sophisticated, traffic-responsive management systems, and these systems require accurate and timely information from vehicle detectors. We are very proud that our Vantage product has achieved significant market acceptance with traffic managers who recognize the benefits of this product. We also want to recognize our valued customers, distribution partners, and Iteris associates for their roles in helping Iteris reach this significant milestone."

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.