Iteris Awarded $2.27 Million Advanced Traffic Management System Phase 2 Integration Project from the City of Corona

-- Iteris will integrate new Hardware and Software and expand the system, adding additional agencies providing area-wide traffic improvements --

SANTA ANA, Calif. -- Iteris, Inc., a leader in the traffic management market that focuses on the application and development of advanced technologies, today announced that the City of Corona has awarded a contract to Iteris for the integration phase of the Advanced Traffic Management System (ATMS) Phase 2 Project (The Project). The Corona ATMS Phase 2 Project builds upon the city?s existing Phase 1 project deployment, completed by Iteris in 2003, to provide improved transportation management along additional corridors while incorporating additional stakeholders in the Corona region. The contract is valued at $2.27 million, is expected to start immediately, and will include the procurement and configuration of numerous intelligent transportation systems (ITS) hardware and software components. Work on The Project is expected to occur over the next 9 months.

?Iteris has been involved with The Project from the early stages of development of the Master Plan, and we are pleased that Corona has decided to move forward with the next phase of the ATMS Project using Iteris? capabilities,? stated Mr. Abbas Mohaddes, president and chief executive officer of Iteris. ?Iteris has extensive experience in deploying ATMS technologies, and we are looking forward to helping the agency deliver congestion relief, improved mobility, and quality of life to area residents and commuters alike.?

The Project will expand operations to additional city and Caltrans signalized intersections, and initiate the integration of the City of Norco and County of Riverside signalized intersections into the Corona ATMS. The Project will incorporate over 17 miles of new fiber optic cable and 15 miles of existing fiber optic cable from the ATMS Phase 1 project. As well as being responsible for the design of the city?s IP network to support the ATMS Phase 1 and Phase 2 project elements, Iteris will also supply the ITS components and configure all IP devices.

Once completed, The Project will deploy Ethernet-based communications to 95 signalized intersections and include the upgrade of nearly 50 traffic signal controllers. The Project will also deploy six new Gigabit Ethernet communication hubs, 30 new CCTV cameras, 8 Dynamic Message Signs (DMS), one microwave Gigabit Ethernet backhaul link, and will upgrade 29 existing video-based traffic detection systems to Ethernet-based communications.

About Iteris, Inc.
Iteris, Inc. is a leader in the traffic management market 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 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 success and timing of this acquisition and our future prospects.

Important factors that may cause such a difference include, but are not limited to our ability to specify, develop, and complete our technologies in a timely manner; budget constraints and changing governmental priorities; the timing and successful completion of this contract; the potential unforeseen impact of product offerings from competitors and other competitive or governmental pressures; and the general economic, political, and specific conditions in the global , domestic and local 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).

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