The Auto Channel
The Largest Independent Automotive Research Resource
The Largest Independent Automotive Research Resource
Official Website of the New Car Buyer

Lane Departure Warning Technology Gets Boost in Proposed Tax Incentive Legislation

ANAHEIM, Calif.--Aug. 9, 2005--Iteris Inc. (AMEX:ITI) today announced that a bill has been introduced in Congress that provides financial incentives to buyers of passenger cars and commercial trucks who purchase safety-oriented advanced technology devices such as Iteris' Lane Departure Warning ("LDW") systems.

Congressman Mike Rogers (R-MI) introduced the bill (HR-3591) "to amend the Internal Revenue Code of 1986 and to provide a credit to facilitate the accelerated development and deployment of crash avoidance and crash protection systems." The legislation would allow a $500 tax credit when an auto or truck is purchased with LDW equipment. Aftermarket installations are also expected to be eligible for this tax benefit under the proposed legislation.

"This tax incentive legislation seeks to give auto and truck buyers another reason to purchase safety options such as Iteris' LDW system," said Jack Johnson, CEO of Iteris. "We believe this legislation will accelerate more widespread adoption of our LDW system and other intelligent vehicle technologies that help make our highway travel much safer."

Iteris' LDW system uses advanced imaging technology and proprietary software algorithms to audibly warn drivers when their car or truck is unintentionally drifting out of its lane. Federal accident data indicate that unintended road and lane departures account for 59 percent of total fatalities. A recent year-long study by the Virginia Tech Transportation Institute (VTTI) concluded that nearly 80 percent of vehicle crashes involve driver distraction.

Iteris introduced the world's first commercially available Lane Departure Warning system, initially installed on trucks in Europe and the U.S. Iteris' LDW technology made its debut on passenger vehicles with its introduction on the Nissan Infiniti FX crossover sport utility vehicle in 2004 and the Infiniti M earlier this year.

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.