Iteris Awarded Contract for I-35W Bridge Replacement in Minneapolis

Iteris to Provide All ITS Design Services for the I-35W Emergency Design-Build Contract to Replace the Mississippi River Bridge -

SANTA ANA, Calif.--(BUSINESS WIRE)--Dec. 5, 2007--Iteris, Inc., a leader in the traffic management market that focuses on the application and development of advanced technologies, today announced it was awarded a $368,000 contract to serve as the engineering partner to provide all Intelligent Transportation Design (ITS) design services for the St. Anthony Falls (I-35W) Emergency Design-Build project for the Minnesota Department of Transportation (Mn/DOT).

"This is a critical, yet sensitive project for the citizens of Minneapolis and its surrounding cities and Iteris is honored to be part of the design-build team," said Abbas Mohaddes, president and chief executive officer for Iteris. "We realize there is significant economical impact associated with the loss of this bridge, and support the expedited timeline to finish this project. With our extensive resources, Iteris is committed to the successful completion of all ITS design elements."

Iteris is a subconsultant to FIGG, the structural engineering firm leading the design of the new bridge structure. The schedule to design and build the replacement to the bridge that collapsed four months ago is aggressive, with completion slated for late 2008.

The I-35W design-build project continues Iteris' success in providing ITS design services on design-build projects across the US. Recently, Iteris was awarded a contract to provide ITS design services on the I-15 Design-Build project in Nevada.

Iteris' scope of work includes the design of the following ITS elements: Ramp Meter Systems, Closed Circuit Television (CCTV) Systems, Under Bridge Forward Looking Infrared FLIR/CCTV Surveillance Systems, Speed Detection Station, Fiber Optic Communications and Infrastructure, and Electrical Services.

The Fiber Optic Communications System will also support other systems integrated into the construction of the new bridge including an anti-icing system that will be constructed into the bridge structure aimed at increasing the operational safety of the bridge.

The ITS elements designed by Iteris as part of this project will be integrated into Mn/DOT's Regional Transportation Management Center (RTMC). The RTMC includes Mn/DOT's state-of-the-art Operations Center where State Patrol Dispatch, Maintenance Dispatch and Traffic Operations provide motorists in the Twin Cities region with real-time traffic conditions. Iteris' contract on this project also includes providing technical support during construction to the project contractor, Flatiron Mason.

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 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 project 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 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).