Iteris Announces New Distribution Agreement for the Pacific Northwest

-- Western Systems Joins Distribution Channel for Iteris' Vantage(R) Product Line --

ANAHEIM, Calif.--(BUSINESS WIRE)--May 15, 2007--Iteris, Inc., a leader in vision-based technologies and Intelligent Transportation Systems that optimize traffic flow and enhance driver safety, today announced that Western Systems, a regional distributor of traffic control and signal systems, has been named its newest distributor for the company's Vantage line of video vehicle detection products.

"We are very pleased to announce the addition of Western Systems to our distribution channel," said Greg McKhann, senior vice president and general manager of Iteris' Roadway Sensors business. "They have a strong reputation and presence in the Pacific Northwest, which we believe is a region with strong growth potential for our Vantage product line. Many other products offered by Western Systems are complementary to ours, so they are well positioned to offer end users and contractors a "one-stop shopping" experience. Western Systems performed well as a Value Added Reseller for Iteris, and we expect their increased emphasis on Vantage to drive sales growth."

With an already well established sales force in the region, Western Systems will service the entire Pacific Northwest including: Alaska, Idaho, Oregon, Montana, and Washington.

"We take pride in offering superior products to our government customers," said Mike Smith, owner and chairman of Western Systems. "Western Systems is excited about the opportunity to expand and strengthen our relationship with Iteris. End users in our market are recognizing the benefits of video-based detection compared to in-pavement loops and other detection technologies. Iteris and Western Systems will work together to make Vantage the sensor of choice in our market."

About Western Systems

Western Systems is a full line distributor of traffic control and signal products based in Everett, Washington. The company specializes in advanced networks, data communications and transfer, and ruggedized control boxes for the transportation and utilities industries. Western Systems provides field-proven products from leading manufacturers like Siemens ITS, Microwave Data Systems, Optelecom/NKF and GarrettCom.

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 the performance and expected benefits of our technology, our future prospects, our expectations of the growth potential in certain geographic markets and the expected emphasis our dealers and value added resellers place on selling Iteris products. 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.

Important factors that may cause such a difference include, but are not limited to the market acceptance of our technologies and of the products that incorporate our technologies; the timing and successful completion of customer qualification of our products and the risks of non-qualification; our ability to specify, develop, complete, introduce, market and transition our products and technologies to volume production in a timely manner; the potential unforeseen impact of product offerings from competitors and other competitive pressures; and the general economic and political conditions and specific conditions in the markets we address. 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).