Iteris Secures $1 Million Contract from the San Francisco Bay Area Metropolitan Transportation Commission

ANAHEIM, Calif.--July 6, 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 San Francisco Bay Area Metropolitan Transportation Commission (MTC) to provide continued assistance to local jurisdictions for the retiming of traffic signals throughout the nine-county San Francisco Bay Area.

The two-year, $1 million contract extension covers technical assistance for the analysis of existing conditions, including collecting new traffic counts and performing travel time and delay studies; development of recommended timing plans; implementation and fine-tuning of approved timing plans; and evaluation of the benefits of the project. For the 2006 cycle of projects, Iteris has been assigned to work on 11 projects involving 15 different agencies in the Bay Area.

"Signal timing optimization is one of our core service offerings. It reduces stops and delays, and helps consumers obtain higher fuel efficiency," said Abbas Mohaddes, executive vice president for Iteris. "MTC has been a leader in application of congestion mitigation strategies, recognizing the extensive benefits of this program enjoyed by hundreds of thousands of motorists. We are delighted to continue providing our services to MTC assisting several of the local agencies throughout the San Francisco Bay Area in this program."

"MTC's objectives are to relieve congestion, enhance safety, reduce delays, and lower harmful vehicle emissions by proactively optimizing traffic signal timing throughout the region," said Christina Atienza, program manager for MTC. "Iteris has done an exemplary job of providing their technical expertise and managing their multiple project assignments, which has helped MTC achieve its objectives."

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.

About MTC

MTC is the transportation planning, financing and coordinating agency for the nine-county San Francisco Bay Area.