One of the World's Largest Commercial Vehicle Manufacturers Deploys Iteris Safety Technology in Europe

ANAHEIM, Calif.--July 31, 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 another of the world's leading truck original equipment manufacturers (OEMs) will offer its award-winning Lane Departure Warning (LDW) technology on its line of Class 8 trucks.

Iteris began delivery of the first production units this month with installations to begin immediately at the OEM's on-site factory modification center. The LDW system will be offered as a factory-installed option on the company's heavy trucks. The OEM produces an estimated 40,000 trucks per year.

"We are very pleased that our LDW technology has been deployed by another major OEM in Europe," said Jack Johnson, chief executive officer for Iteris. "This means that we are now available on six of the top 12 heavy truck manufacturers in Europe and North America which have an estimated market share of close to 60 percent."

Iteris is already the only qualified supplier for Original Equipment Manufacturers (OEMs) that include: Mercedes-Benz, MAN, Iveco, Freightliner, and International with over 24,000 LDW systems sold for commercial truck platforms in the U.S. and Europe representing an estimated billion miles traveled per year. In the U.S., there are currently 33 fleets specifying Iteris LDW system with a combined fleet size of nearly 14,000 trucks and another 54 fleets with approximately 105,000 trucks conducting field tests. Iteris was selected because the company remains the only provider with a proven LDW system in mass production that can meet this manufacturer's immediate and long-term needs.

Iteris developed its vision-based LDW technology to help address the problem of vehicle-related highway fatalities -- unintended lane changes caused by distracted, inattentive or fatigued drivers. Iteris' LDW system was the first of its kind to be deployed in the commercial truck and passenger car markets and it still remains the only vision-based system in mass production in the U.S. and Europe.

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.