Iteris Selected by Virginia Department of Transportation for Estimated $10 Million Traveler Information Services Contract

- Five-Year Transportation Operations Data Distribution Services Agreement focuses on the dissemination of video and data to the traveling public and public safety partners -

SANTA ANA, Calif. - September 29, 2011- Iteris, Inc., a leader in traffic management solutions, has been selected by the Virginia Department of Transportation (VDOT) to provide the core services of 511 Interactive Voice Response, aggregating transportation video, and managing web-based traveler information and other data. Iteris will also be responsible for distributing related information to the VDOT and traveling public, as well as to other VDOT public partners.

The initial five-year, task order-based contract has an estimated value of $10 million. The contract also includes the option for two, two-year extensions. Work on the project is expected to commence immediately.

Under this contract, Iteris will lead a team of highly qualified partners that will leverage its rich experience assisting in the evolution of VDOT?s Intelligent Transportation System infrastructure and transportation management processes to provide VDOT with a comprehensive, cost-effective solution for sharing video and data that can readily adapt to rapidly evolving technologies and information dissemination media.

This multi-year project also represents a unique opportunity to establish a business model designed to generate revenue to support the 511 system?s operations and data distribution services.

"To improve our transportation infrastructure and provide real-time traffic information, we must continue to explore non-traditional funding sources," said Governor Bob McDonnell. "The 511 Virginia system includes valuable assets that offer opportunities for private-sector sponsorship, and we intend to take full advantage of that to offset operating costs of about $2.1 million annually."

The new system will be implemented during the next six months and will include a number of new features and enhancements to the current system in place since 2008:

• Improved voice recognition software to enable better communications using the latesttechnology
• Easy-to-use menu with more functionality to enable quicker access to desired traffic information
• New features that use email alerts to deliver personalized, real-time traffic information on roads of interest
• Mobile solutions to include apps for iPhone and Droid
• Enhanced, more robust 511 Virginia website

"These enhancements will improve the user experience whether visiting the 511 Virginia website or by responsibly using the 511 phone service," said Governor McDonnell. "The traffic information provided by 511 Virginia is real-time, accurate, and perhaps best of all, free. It's one more tool available to help drivers learn the latest road conditions on their specific route and make adjustments to best avoid congestion."

Abbas Mohaddes, President & CEO of Iteris noted, "This important and prestigious award adds to our already extensive portfolio of nationwide 511 services. We are pleased to be able to continue executing our overall growth strategy as a market leader in traffic management and information systems."

About Virginia Department of Transportation
The Virginia Department of Transportation (VDOT) is responsible for building, maintaining, and operating the state of Virginia?s roads, bridges, and tunnels. Through the Commonwealth Transportation Board, it also provides funding for airports, seaports, rail, and public transportation. VDOT manages the third largest roadway network in the United States, including I-95 which serves as the primary travel corridor linking states along the east coast, making it one of the most heavily traveled interstate corridors in the country. For more information, visit www.virginiadot.org.

About Iteris, Inc.

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, political, and specific conditions in the markets we address.

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