Iteris Awarded Major Federal Highway Administration Contract as Part of Booz Allen Team

ANAHEIM, Calif.--March 14, 2006--Iteris, Inc. (AMEX:ITI), a leader in vision-based technologies and Intelligent Transportation Systems (ITS) that optimize traffic flow and enhance driver safety, today announced it has been selected by the Federal Highway Administration (FHWA), as part of the Booz Allen Hamilton team, to provide technical support and assistance in the area of Intelligent Transportation Systems. Booz Allen Hamilton is an internationally renowned strategy and technology consulting firm.

The five-year FHWA contract covers support services for all six program areas that fall under FHWA's Office of Operations including: reducing non-recurring congestion, reducing recurring congestion, improving day-to day operations, creating a foundation for 21st century operations, enhancing freight management and operations, and improving emergency transportation management.

"Iteris is proud to be a key member of the Booz Allen team and we look forward to the opportunity to continue working with FHWA's Office of Operations," said Abbas Mohaddes, executive vice president of Iteris. "This project will address numerous areas of ITS and further advance its impact in the area of transportation operations across the country."

Effective Jan. 2, 20064, 2006, the contract is estimated to be worth several million dollars to Iteris over the course of five years. Iteris will provide lead technical capabilities to the Booz Allen team in the areas of reducing non-recurring congestion and reducing recurring congestion as well as support in other program areas.

"We are very excited to be teamed with Iteris. Iteris was a key player in this very important win," said John Wiegmann, Booz Allen's Program Manager. "The Booz Allen team stands ready to provide our wide array of talents and capabilities to FHWA under this new contract."

Iteris is currently involved in supporting FHWA through a series of ongoing contracts. This win will provide Iteris the opportunity to continue building on its support of FHWA's office operations over the next five years.

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.