ADDING MULTIMEDIA Iteris, Inc. Promotes Abbas Mohaddes to Chief Executive Officer.

ANAHEIM, Calif. -- Iteris, Inc. (AMEX:ITI) today announced that it has accepted the resignation of Jack Johnson, who has served as the Chief Executive Officer for the past seven years, initially with the Iteris Subsidiary and then with Iteris, Inc. The Company also announced the appointment of Abbas Mohaddes as its Chief Executive Officer effective immediately. Mohaddes had previously served as Executive Vice President of the Company.

Greg Miner, Chairman of the Board, commented, "This change of management is aimed to build on the momentum the Company has demonstrated in recent quarters. We remain extremely enthusiastic about the strength of our markets and the opportunities we see going forward. We see Abbas' role as adding the vision and focus that will accelerate our growth and allow us to provide a greater emphasis on increasing stockholder value."

Mr. Mohaddes added, "I am excited about the opportunity to take the Company to the next level. Iteris is a recognized leader in sensing and traffic management and I believe the Company is well-positioned to enjoy significant growth in the coming years."

Mr. Johnson commented, "I had committed to remain with the Company until we established a firm operational foundation for the business and achieved stable financial performance. Having accomplished these objectives, this is an excellent time to make the change. I believe that Abbas has the leadership, vision, and entrepreneurial instincts to take Iteris to the next level of growth and profitability."

Abbas Mohaddes has been affiliated with the company since 1998, first serving as Vice President of Iteris and President and CEO of its subsidiary, Meyer, Mohaddes Associates, Inc. He was promoted to Senior Vice President for Transportation Systems in 2001, and Executive Vice President in 2004. Mr. Mohaddes has also served as a member of the Board of Directors of the Company since 2005. Prior to joining the Company, he co-founded Meyer, Mohaddes Associates, Inc. in 1991, and served as its Chief Executive Officer until it was acquired by Iteris in 1998.

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 visit our website at www.iteris.com.

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This news release contains forward-looking statements based on our current expectations, estimates and projections about our industry, management's beliefs, and certain assumptions made by us. Words such as "anticipates," "expects," "intends," "plans," "believes," "seeks," "estimates," "may," "will," and variations of these words are intended to identify forward-looking statements. Such statements speak only as of the date hereof and are subject to change. We undertake no obligation to revise or update publicly any forward-looking statements for any reason. These statements include, but are not limited to statements about our future performance, our market opportunity and growth. Such statements are not guarantees of future performance and are subject to certain risks, uncertainties and assumptions that are difficult to predict. Accordingly, 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, our ability to secure additional Transportation Systems consulting contracts and to further expand our vehicle detection and LDW revenues and technologies; our customers' production schedules, agendas and plans for the deployment of our LDW system as a standard safety feature or as an option; the market acceptance of our technologies and our customers' ability to achieve market acceptance of products that incorporate our technologies; our customers' ability to meet their planned manufacturing and sales schedules; the potential unforeseen impact of product offerings from competitors and other competitive pressures; our ability to specify, develop, complete, introduce, market and transition our products and technologies to volume production in a timely manner; the timing and successful completion of customer qualification of our products and the risks of non-qualification; the ability of our partner, Valeo, to expand sales of LDW systems into the passenger car markets; the availability of components used in the manufacture of certain of our products; the effectiveness of cost and expense reduction efforts; warranty and support issues; and the general economic and political conditions and specific conditions in the markets we address, including the general economic slowdown and volatility in the technology sector, and the possible disruption in government spending and commercial activities related to terrorist activity or armed conflict in the United States and other locations. 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).