Iteris Secures Two Major Contracts from the Virginia Department of Transportation

ANAHEIM, Calif.--(BUSINESS WIRE)--Aug. 30, 2007

Iteris, Inc., a leader in the development and application of advanced technologies that help reduce traffic congestion and improve the safety of surface transportation systems, today announced that it has been selected by the Virginia Department of Transportation (VDOT) to provide technical expertise in system operations, Intelligent Transportation Systems (ITS), traffic engineering and safety as part of two System Operations/ITS/On-Call Services contracts that begin this month. "VDOT is excited about its recent selection of Iteris and its team to provide ITS and operations consultant services. VDOT has a number of immediate and long-term needs that the Iteris team is well-positioned to meet," said Ken Earnest, manager of VDOT's Central Region ITS and Communications Design Section.

Both five-year contracts each have ceiling values of $6 million and are designed to support transportation operations in two key regions of the state. The tasks include a broad range of ITS services and projects ranging in size from technical document review to development of regional and statewide operational plans.

The first contract, which is managed by VDOT's Operations and Security Division, encompasses the Central Region of Virginia and includes the state capitol. The second contract, which is managed by the Northern Operations Region, covers the northern part of the state to include some of Virginia's most heavily used transportation assets which serve residents commuting into Washington DC as well as regional employment centers.

"VDOT is continuing its efforts to improve ITS infrastructure across the Commonwealth. The VDOT Northern Region Operations selected Iteris through a competitive negotiation process because of the firm's experience in deploying and maintaining ITS infrastructure, its history of working on similar projects, as well as economic and performance excellence. We are pleased with the result of the solicitation and are looking forward to working with the Iteris team," said Leslie Parnell, VDOT Northern Region Operations.

"These are exciting projects that will utilize our advanced technical and managerial skills," said Abbas Mohaddes, president and chief executive officer for Iteris. "We are pleased to continue supporting VDOT's leadership in the application of transportation technology. Our contributions will help VDOT achieve important milestones in its efforts to improve mobility for motorists in and around these regions of Virginia."

About Iteris, Inc.

Iteris, Inc. leads the traffic management market in the development and application of advanced technologies that reduce traffic congestion, minimize environmental impact and improve the safety of our surface transportation system. 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 Anaheim, California with offices throughout the U.S., Europe and Asia. Investors are encouraged to contact us at 949-270-9400, 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).