Iteris Awarded Contract to Maintain, Operate, and Enhance Georgia's 511 Traveler Information System

-- Annual contract has the potential to create a self-sustaining and revenue generating 511 system --

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 Iteris has been engaged by the Georgia Department of Transportation (GDOT) as part of a team to privatize the State?s 511 traveler information system by implementing a business-plan whereby the costs of maintaining and enhancing the 511 system would be off-set through revenue generated by system use and advertising. The total potential value of the award to Iteris will be determined by a revenue sharing agreement whereby Iteris will receive a percentage of generated funds.

Iteris was part of the team that implemented the current GDOT statewide 511 system which provides the latest updates on travel times, traffic conditions, route-specific information, current and planned road and lane closures, construction, critical incidents, and AMBER alerts in the Atlanta Metropolitan Area, which made Iteris a logical partner for the next phase of the System. As part of the follow-on award, Iteris will provide urban traffic congestion information to the 511 system and will modify the system to provide additional features as well as improve ease of use to retain existing users and attract new ones.

Planned enhancements include the development of a new web presence for NAVIGATOR, Georgia's Statewide Intelligent Transportation System, which is expected to carry advertisements and sponsorships and a subscription-based personalized traveler information system that will allow users to establish travel profiles and receive personalized traveler information that is unique to their own individual travel patterns and times. Subscription fees as well as advertising and sponsorship revenues are expected to go toward funding the on-going 511 system operations costs. Ultimately, the goal of the project is for the GDOT 511 system to be fully funded by private funds and potentially generate revenue for the state.

?I believe the innovative business model that GDOT has decided to pioneer - a phased reduction in public funds, while providing incentives to create new revenue streams - is a solid step in the right direction,? said Abbas Mohaddes, president and chief executive officer of Iteris. ?Additionally, this model provides Iteris with the opportunity to generate a healthy stream of recurring revenue.? ?When we launched GDOT?s 511 system almost three years ago, we promised callers that the service will be a model to the rest of the nation,? stated Anthony M. Bradford, TMC & 511 Program Manager. ?To remain true to that promise, we are pleased to partner with Iteris to find innovative ways to off-set costs, without impacting the high-quality service that callers have come to expect.?

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 North America, and in 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 ability of GDOT and Iteris and their partners to create and maintain private funding sources; 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 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).