Iteris Announces Early Retirement of $1.0 Million in Convertible Debt for $850,000

-- Company Saves $150,000 in Principal and approximately $60,000 in

Future Interest Payments --

SANTA ANA, Calif. ? Feb. 29, 2008 -- Iteris, Inc., a leader in the traffic management market that focuses on the application and development of advanced technologies, today announced the early retirement of $1.0 million in convertible debentures for $850,000, saving the Company $150,000 in principal and approximately $60,000 in future interest payments.

?I am pleased that we are again in a position to take advantage of an opportunity to reduce our long term debt and save the Company and its shareholders money? said Abbas Mohaddes, President and CEO of Iteris. ?With this retirement we have now settled $2.1 million in long term debt for $1.8 million, reducing our total obligation on the convertible debentures to $7.8 million. As I previously stated, I believe this is another positive step toward strengthening the Company?s overall financial position."

The convertible debentures were originally issued by the Company in May 2004 and were due and payable in full in May 2009, provided for 6.0% annual interest, payable quarterly, and were convertible into the Company?s common stock at an initial conversion price of $3.61 per share, subject to certain adjustments, including adjustments for dilutive issuances.

About Iteris, Inc.

Iteris, Inc. is a leader in the traffic management market. Iteris is focused on the development and application of advanced technologies that reduce traffic congestion, minimize the environmental impact of traffic congestion and improve the safety of surface transportation systems. Combining outdoor image processing, traffic engineering and information technology, Iteris offers a broad range of Intelligent Transportation Systems and driver safety solutions to customers worldwide. Iteris is headquartered in Santa Ana, California with offices throughout the U.S., Europe and Asia. Investors are encouraged to contact us at 888-329-4483, or at http://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 the Company?s financial position and strength.

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).

####