Iteris Secures $5 Million Contract from the Georgia Department of Transportation; New Contract Continues to Position Iteris as a Leader in Intelligent Transportation Systems

ANAHEIM, Calif.--Feb. 1, 20064, 2006--Iteris, Inc. (AMEX: ITI), a leader in the development of vision-based technologies and Intelligent Transportation Systems that optimize traffic flow and enhance driver safety, today announced that it has been selected by the Georgia Department of Transportation (GDOT) to complete the final phase of the Advanced Transportation Controller Implementation Program, a project designed to systematically replace all existing traffic signal controllers throughout the state over the next five years. The contract value to Iteris is $5 million and the company expects work to begin as early as April of 2006.

Iteris has been involved in this project since its inception, beginning with specifications development, procurements, training and technical support. Iteris, with the support of GDOT, has already replaced over 4,800 controllers throughout the state. The Advanced Transportation Controller Implementation Program was designed to transition all 8,000 traffic signals in the state of Georgia from multiple traffic control systems to a uniform hardware and software platform with broad flexible capabilities and new industry standards. When completed, every traffic signal in Georgia will have the same overall control system making it the only state in the U.S. to accomplish such an ambitious goal.

"This is an exciting project that will utilize our advanced technical and managerial skills, as we work closely with the Georgia Department of Transportation and more than 50 stakeholders. Over the last five years, Iteris has developed a unique understanding of the project's technical and institutional issues, and has established an outstanding working relationship with all parties involved," said Abbas Mohaddes, Iteris executive vice president. "Iteris is honored to support GDOT's outstanding leadership in the application of transportation technology in resolving congestion problems to provide travelers with reduced travel times and delays."

"The Georgia Department of Transportation has embarked on an ambitious and challenging effort to improve traffic signal operations across the entire state," said Ken Montgomery, state traffic signal engineer for GDOT. "Iteris has been supporting this program from its inception and was chosen through a competitive proposal process to assist GDOT with this landmark effort. The Iteris team demonstrated an innovative, insightful and cost-effective approach to this work which we believe will lead to the successful completion of this program."

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 is headquartered in Anaheim, California. 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 timing of this project and our future prospects.

Important factors that may cause such a difference include, but are not limited to our ability to specify, develop and complete our technologies in a timely manner; budget constraints and changing governmental priorities; the timing and successful completion of this contract; the potential unforeseen impact of product offerings from competitors and other competitive or governmental 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 website (www.sec.gov).