Iteris Secures $5.95 Million Contract from the Los Angeles County Metropolitan Transportation Authority

-- New Contract Continues Positioning Iteris as a Leader in Bus Rapid Transit Planning and Design --

ANAHEIM, Calif.--(BUSINESS WIRE)--April 3, 2007--Iteris, Inc., a leader in the development of vision-based technologies and Intelligent Transportation Systems that optimize traffic flow and enhance driver safety, today announced it has been awarded a $5.95 Million contract by the Los Angeles County Metropolitan Transportation Authority (Metro) to provide transportation and engineering services relative to the extension of the Metro Orange Line Busway in the San Fernando Valley.

Work on the contract is expected to begin immediately and run through August 2008 covering preliminary planning, preparation of an Environmental Impact Report, and preliminary engineering. Two options are included in the contract that would allow Iteris to assist in the development of design/build documents and provide assistance to the design/build contractor during the construction phase of the project which could last through 2012. The potential value of these contract extensions has not been determined.

Metro Project Manager, Walter Davis, commented, "Metro is excited about working with Iteris and its sub-contractors to environmentally clear and complete preliminary engineering for a Northern Extension of the Metro Orange Line." Mr. Davis continued, "The North Hollywood to Woodland Hills Metro Orange Line has enjoyed tremendous success in terms of ridership and community support. Metro feels confident that this proposed northern extension of Metro Orange Line service to the Chatsworth Metrolink Station -- and possibly as far as the SR-118 freeway -- would only enhance the attractiveness and usability of the alignment."

Iteris Western regional Vice President of Transportation Systems, Michael Meyer, noted, "Iteris has been involved in the planning and environmental clearance of the existing Orange Line for many years. We are excited to be able to continue our involvement in the implementation of transit improvements in the San Fernando Valley." Mr. Meyer continued, "Having recently completed the San Fernando Valley North-South Transit Corridor Study, we are happy to see the successful implementation of Rapid Bus improvements we recommended on Van Nuys, Sepulveda and Reseda Boulevards. We look forward to successful implementation of such improvements in the Canoga corridor to increase transit options in the West Valley."

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 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 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).