Iteris Secures $5.95 Million Contract from the Los Angeles County Metropolitan Transportation Authority

ANAHEIM, Calif.--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 it has been awarded a $5.95 Million contract by the Los Angeles County Metropolitan Transportation Authority (Metro) to provide transportation and engineering services relative to the extension of the Metro Orange Line Busway in the San Fernando Valley.

Work on the contract is expected to begin immediately and run through August 2008 covering preliminary planning, preparation of an Environmental Impact Report, and preliminary engineering. Two options are included in the contract that would allow Iteris to assist in the development of design/build documents and provide assistance to the design/build contractor during the construction phase of the project which could last through 2012. The potential value of these contract extensions has not been determined.

Metro Project Manager, Walter Davis, commented, “Metro is excited about working with Iteris and its sub-contractors to environmentally clear and complete preliminary engineering for a Northern Extension of the Metro Orange Line.” Mr. Davis continued, “The North Hollywood to Woodland Hills Metro Orange Line has enjoyed tremendous success in terms of ridership and community support. Metro feels confident that this proposed northern extension of Metro Orange Line service to the Chatsworth Metrolink Station -- and possibly as far as the SR-118 freeway -- would only enhance the attractiveness and usability of the alignment.”

Iteris Western regional Vice President of Transportation Systems, Michael Meyer, noted, “Iteris has been involved in the planning and environmental clearance of the existing Orange Line for many years. We are excited to be able to continue our involvement in the implementation of transit improvements in the San Fernando Valley.” Mr. Meyer continued, “Having recently completed the San Fernando Valley North-South Transit Corridor Study, we are happy to see the successful implementation of Rapid Bus improvements we recommended on Van Nuys, Sepulveda and Reseda Boulevards. We look forward to successful implementation of such improvements in the Canoga corridor to increase transit options in the West Valley.”

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.