Los Angeles County Metropolitan Transportation Authority Board Authorizes Negotiation of Contract Modifications of up to $4.5 Million for Iteris' Services for the Metro Orange Line Extension

-- Iteris positioned to continue engineering and design of the project with an aggregate value of up to
$10.5 Million --

Santa Ana, Calif. ? January 28, 2009 -- Iteris, Inc. leader in the traffic management market that focuses on the application and development of advanced technologies, today announced that the Los Angeles County Metropolitan Transportation Authority (Metro) authorized Metro?s CEO to negotiate the modification of its contract with Iteris, Inc. for further design development and engineering support services during construction for the Metro Orange Line (MOL) Extension Project, as well as for final design services to support acceleration of the MOL Extension Project, potentially increasing the total contract value from approximately $6.0 million to $10.5 million.

The MOL is a fourteen mile long dedicated transitway operated by Metro in the San Fernando Valley. The MOL Extension Project is a four-mile extension of the MOL extending from the existing Canoga Park-and-Ride lot to the Chatsworth Metrolink Station. The Project includes: busway, new station platforms at the Canoga Park-and-Ride lot, new stations at Sherman Way (with park-and-ride), Roscoe Boulevard, Nordhoff Street, and the Chatsworth Metrolink Station; bikeway and transportation enhancements/greenway; and an over-crossing/grade-separation over active railway tracks and Lassen Street, providing direct access into the Chatsworth Metrolink Station.

Metro?s original contract, awarded to Iteris in April 2007, covered environmental engineering reports and preliminary engineering. A contract extension would expand Iteris? contribution through the development of design/build documents and assistance to the design/build contractor during the construction phase of the project, which could last through 2012. ?We are very pleased to have the opportunity to continue our support of the Metro Orange Line Extension Project with the design and engineering support services," said Abbas Mohaddes, Iteris? president and chief executive officer. ?This important advanced transit system is an exceptional demonstration of Iteris? transit design and management capabilities. We believe Iteris is well-positioned to contribute its proven expertise as similar infrastructure projects are implemented around the country, which we expect will ultimately benefit Iteris and our shareholders alike."

Metro Project Manager, Hitesh Patel, commented, "Metro is pleased with Iteris? contributions to environmentally clear and complete preliminary engineering for the Metro Orange Line Extension Project." Mr. Patel continued, "The decision not only to proceed, but also to accelerate the Metro Orange Line Extension Project will help to relieve traffic congestion and provide much needed sustainable transportation in our urbanized areas."

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 infrastructure. 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 United States, 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 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 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).

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