Iteris Secures Two Major Awards for Vantage Video Detection Systems in Western Canada; Iteris Wins Orders for 60 Intersections

ANAHEIM, Calif.--Oct. 5, 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 the company and its regional distributor, Interprovincial Traffic Services Ltd. (ITS), were recently awarded two significant orders for Vantage Video Detection Systems in Western Canada.

The Vantage system will be used by the cities of Calgary and Regina, which selected Vantage over other video detection systems for use in traffic management applications, after conducting separate competitive evaluation processes. Iteris will initially provide equipment for approximately 60 intersections in total for the two orders.

"Iteris' Vantage system has been widely adopted by agencies across the United States, and we are very pleased to announce significant progress on our growth efforts in Canada," said John Shearer, regional sales manager for Iteris. "We believe our systems improve mobility and traffic flow for motorists while yielding significant economic benefits for public agencies. We are thrilled to be a part of these milestone projects, and look forward to further expanding our presence in Canada."

"We're very excited about securing the first two sizeable projects in Western Canada. We believe video detection adoption across Canada is in its infancy and that this region offers considerable growth potential," said Chris Agnew, president of Interprovincial Traffic Services Ltd. "Through intense testing and evaluation we've established the Vantage system as a market leader in overall performance, and its superior quality has been recognized and embraced by both of these agencies. We anticipate the installations in Calgary and Regina will be used as key benchmarks by other agencies when selecting new vehicle detection systems."

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.

About Interprovincial Traffic Services Ltd.

Interprovincial Traffic Services Ltd. (ITS), based in Vancouver, British Columbia, is a privately held company that has been in operation since 1973. It provides a broad range of transportation products and services to both government and private industry across Western Canada.

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 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," "seeks," "estimates," "may," "will," "can," and variations of these words or similar expressions are intended to identify forward-looking statements. These statements include, but are not limited to, statements about the success and impact of and the expanded deployment of our Vantage vehicle detection systems. 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, government funding and spending priorities; the technical capabilities and market acceptance of our Vantage systems; our ability to successfully manufacture and distribute our Vantage systems and win additional contracts; the potential unforeseen impact of product offerings from competitors and other competitive pressures; and the general economic and political conditions and specific 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).