Iteris to Hold Conference Call July 15 to Discuss Restatement of Earnings for Fiscal 2004; Accounting Treatment Relative to Deferred Compensation to Result in Non-Cash Charges

ANAHEIM, Calif.--July 14, 2005--Iteris Inc. (AMEX:ITI), the leader in the development of vision-based technology that enhances driver safety, today announced that after discussions with the Audit Committee of the Board of Directors, the company's current independent auditors, McGladrey & Pullen LLP, and the company's former independent auditors, Ernst & Young LLP, the company has elected to restate its financial statements for the fiscal year ended March 31, 2004, to reflect non-cash deferred compensation charges that relate to changes in valuation of certain shares of Iteris common stock held by senior management and purchased through the company's Deferred Compensation Savings Plan.

The company filed today its Annual Report on Form 10-K for the year ended March 31, 2005, that includes the restated financial statements, and a Current Report on Form 8-K, which provides further details regarding this restatement.

In addition, the company will hold a conference call on Friday, July 15, 2005, at 10 a.m. PDT, to discuss this restatement. You are invited to listen to the Iteris conference call with Jack Johnson, chief executive officer, and Jim Miele, chief financial officer, either by a live broadcast over the Internet or by phone:

    When:   10 a.m. PDT, July 15, 2005

    How:    Webcast: Go to the Investor Relations area at:
            http://www.iteris.com where you will find a link to the
            webcast near the top right-hand corner of the page.

            You will need to have MediaPlayer software installed on
            your computer - available on the webcast page under
            Pre-Event System Test.
        OR
            Phone: Dial 1-617-213-8838 and use the pass code 26936507

            A webcast replay will be available until July 27, 2005, at
            http://www.iteris.com, on the Investor Relations page.

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 headquartered in Anaheim. Investors are encouraged to contact the company at 714-774-5000, or at www.iteris.com.