Iteris Initiates $3 Million Stock Repurchase Program

SANTA ANA, Calif. ? August 23, 2011 ? The board of directors of Iteris, Inc., a leader in traffic management solutions, has authorized the company to repurchase up to $3 million of its common stock over the next 12 months.

"The recent divestiture of our Vehicle Sensors business has further strengthened our balance sheet and provided us with multiple options to drive shareholder value," said Abbas Mohaddes, president and CEO of Iteris. ?Reinvesting in Iteris through thisbuybackprogram has presented itself as one of those options that we believe is a prudent use of cash, and demonstrates confidence in our growth opportunities and ability to generate positive cash flows. To further drive shareholder value we intend to pursue our broader strategic plan, whichincludes using our strong balance sheetto supportboth organic initiatives and strategic acquisitions.?

Under the stock repurchase program, the company is authorized to repurchase up to $3 million of its issued and outstanding common shares from time to time in open-market and privately negotiated transactions and block trades, in accordance with federal securities laws, including Rule 10b-18 promulgated under the Securities Exchange Act of 1934, as amended. There is no guarantee as to the exact number of shares, if any, that will be repurchased by the company. The share repurchase program may be modified, terminated, or extended by the company at any time without prior notice.

About Iteris, Inc.

Iteris, Inc. is a leader in traffic management solutions 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 infrastructure. Combining outdoor image processing, traffic engineering, and information technology, Iteris offers a broad range of Intelligent Transportation Systems solutions to customers worldwide. Iteris is headquartered in Santa Ana, California with offices throughout North America and in Europe and the Middle East. 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 regarding the repurchase of shares of common stock under the company's stock repurchase program and its potential benefits, as well as statements regarding our strategic plans. These statements are based on management's estimates and assumptions with respect to future events and financial performance and are inherently uncertain and difficult to predict.

Actual results may differ materially from those indicated in any forward-looking statements based on a number of factors including, but not limited to, market conditions; the company?s ability to identify, develop, market, and sell new products, solutions, and technologies as well as identify, complete, and integrate future strategic acquisitions and other opportunities; any unforeseen accounting charges or costs; budget constraints; changing governmental priorities; the potential unforeseen impact of product and service offerings from competitors and other competitive or governmental pressures; and the general economic, political, and specific conditions in the markets addressed by the company. Further information on Iteris, Inc., including additional risk factors that may affect its forward looking statements, is contained in the company?s Annual Report on Form 10-K, its Quarterly Reports on Form 10-Q, its Current Reports on Form 8-K, and its other SEC filings that are available through the SEC?s website (www.sec.gov).