Iteris Named Stock of the Month by The Bowser Report

ANAHEIM, Calif.--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 it has been selected as “Company of the Month” by The Bowser Report for its December 2006 stock report newsletter which included a one page write-up on the Company. The Bowser Report, based in Newport News, Virginia, selects and recommends stocks using fundamental analysis.

“We appreciate the placement of Iteris as the featured stock in the December 2006 issue of The Bowser Report," said Jack Johnson, president and CEO for Iteris. "Max Bowser is well-recognized for his analytical approach to discovering undervalued and unrecognized stocks.”

Authored by R. Max Bowser, the 30-year-old newsletter uses fundamental analysis to select and recommend stocks to its subscriber base. Companies featured in the 10-page newsletter do not pay for the research and coverage and do not edit the newsletter's recommendations. One company is highlighted in each issue as "Company of the Month." The Bowser Report was selected as one of the top ten newsletters in 2005 by the Hulbert Financial Digest.

“Iteris continues to experience growth in each of our three segments and we are excited about our future prospects,” added Mr. Johnson. “We believe increases in federal and state funding levels for transportation projects have fueled growth both in our Systems Consulting and Roadway Sensor businesses. Our lane departure warning system has now been qualified by the majority of heavy truck OEMs throughout Europe, and we expect this coupled with an increased sales and marketing effort in North America, to lead to future growth.”

Iteris offers a broad range of transportation and safety solutions to the Intelligent Transportation Systems (“ITS”) market which leverage the company’s proprietary, object-recognition software and transportation engineering expertise to provide innovative solutions to the expanding transportation industry. Iteris operates in three segments: Roadway Sensors, Automotive Sensors, and Transportation Systems.

About The Bowser Report

Founded in 1976, The Bowser Report is a monthly, 10 page newsletter recommending stocks that are $3.00 a share or less on the NYSE, NASDAQ, and AMEX. One “Company of the Month” is highlighted in each issue, accompanied by an analysis of its business model, financial reports, product line and overall growth potential. Founder Max Bowser evaluates each stock with his 12 Point Rating System, then groups them into three categories: (1) Best Pick, (2) Worthy of Consideration, and (3) Very Speculative. For more information, visit www.thebowserreport.com.

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, Inc. 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 our future prospects and expected growth. 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.

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).