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Iteris Transportation Systems Appoints New Director of Operations in Nevada

ANAHEIM, Calif.--June 26, 2006--Iteris Inc. (AMEX:ITI), a leader in vision-based technologies and Intelligent Transportation Systems that optimize traffic flow and enhance driver safety, today announced that Ram Kumar, Ph.D., has joined the Transportation Systems division as associate vice president and director of Nevada operations. In this role, Kumar will manage all aspects of Iteris' growing transportation consulting business in the state of Nevada.

Kumar brings more than 30 years of specialized experience in the fields of traffic engineering, transportation planning, and Intelligent Transportation Systems (ITS). In his previous position as a project/program manager at Parsons, Brinckhoff Quade & Douglas Inc., Kumar assisted public agencies throughout the western United States in the development of transportation-related capital improvement projects, transit operations and maintenance facilities, Bus Rapid Transit (BRT), and other major engineering and system planning projects.

"Ram brings a unique blend of expertise to Iteris," said Abbas Mohaddes, executive vice president of Iteris. "His recognized ability to efficiently apply solid solutions to improve mobility within the transportation and ITS fields, combined with his management and business development skills, is a perfect fit for this position."

As project/program manager at Parsons Brinckhoff, Kumar managed a number of transportation projects and programs from initial feasibility analysis through implementation. These projects and programs ranged in value from a $15 million commuter rail station, bus operation and maintenance facility project in Los Angeles County to a $2 billion Los Angeles County Freeway High Occupancy Vehicle (HOV) Master Plan and Early Implementation Plan. His leadership and management of budgets, schedules, and team members have enhanced the value of projects while ensuring their cost effectiveness.

"I am looking forward to working with the Iteris team who is currently leading the way in ITS," said Kumar. "I consider Iteris to be the premier firm within the traffic and transportation industry."

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 the company 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 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 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 our contracts; 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 Web site (www.sec.gov).