Iteris Secures New and Expanded $19.5 Million Credit Facility with California Bank and Trust

The company currently has no borrowings on its line of credit and more than $4 million in cash on hand. New line will be used to fund future growth

SANTA ANA, Calif. - Iteris, Inc., a leader in the traffic management market that focuses on the application and development of advanced technologies, announced today it has secured an expanded $19.5 million credit facility with California Bank & Trust. The facility provides the Company a $12.0 million revolving line of credit to be used for working capital needs. The Company intends to use the $7.5 million portion of the credit facility to retire outstanding convertible debentures which are due in May 2009.

"Securing a new credit facility on terms favorable to Iteris is an integral part of our strategic plan to position the Company to achieve its plans for growth," said Abbas Mohaddes, Iteris' president and CEO.

The $12.0 million revolving line of credit will be fully available to the Company at all times. The line has a two-year life and interest is payable at prime to prime plus 50 basis points depending on average aggregate deposit balances maintained at the bank in relation to the total loan commitment.

The $7.5 million term note portion of the credit facility is structured to retire convertible debentures which are due in May 2009. The term note is fully amortizing over 48-months with interest payable at prime plus 50 basis points to prime plus 100 basis points, depending on average aggregate deposit balances maintained at the bank in relation to the total loan commitment.

"We are very excited to have expanded our credit facility on terms more favorable to what we have historically enjoyed despite the difficult economic environment. This new line demonstrates the confidence California Bank & Trust has in Iteris' business, markets, cash flow, and overall strategic plan. I believe that California Bank & Trust is the right institution to support Iteris' future growth and achieve both our short and long-term financial goals. We are fortunate that as of today we have no borrowings on our line of credit and have in excess of $4 million in cash on hand."

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 performance of Iteris, our ability to execute on our strategic plan, and the expectation that the new credit facility will be adequate to fund the Company's future growth and business operations as well as the repayment of the convertible debentures. These statements are subject to change and we undertake no obligation to revise or update publicly any forward-looking statements for any reason. These statements are not guarantees of future performance and are subject to certain risks, uncertainties and assumptions that are difficult to predict. Therefore, our actual results could differ materially and adversely from those expressed in any forward-looking statements as a result of various factors.

Important factors that may cause such a difference include, but are not limited to the market acceptance of our technologies and of the products that incorporate our technologies; the timing and successful completion of customer qualification of our products and the risks of non-qualification; our ability to specify, develop, complete, introduce, market and transition our new and existing products and technologies to volume production in a timely manner; the potential unforeseen impact of product offerings from competitors and other competitive pressures; federal, state and local budget constraints and changing governmental priorities; the timing and successful completion of our contracts 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).

###