Caltrans Expands Traffic.com Network of Digital Traffic Sensors into San Jose and Sacramento; Agreements Mark Fourth and Fifth California Metropolitan Areas Participating in TTID Program.

WAYNE, Pa. -- Traffic.com, Inc. (NASDAQ:TRFC), the leading provider of personalized traffic information for drivers coast to coast, signed an agreement with the California Department of Transportation (Caltrans) that provides for the installation of digital roadside traffic sensors in the San Jose and Sacramento metropolitan areas. These new sensors will monitor approximately 1,000 lane miles on area expressways.

Traffic.com has an established history with Caltrans, beginning in 2003 when Traffic.com signed its first agreement to install sensors in Los Angeles through the Federal Highway Administration's (FHWA) Transportation Technology Innovation and Demonstration (TTID) Program, originally the Intelligent Transportation Infrastructure Program (ITIP). Since then, Caltrans has continued to tap Traffic.com for additional sensor deployments throughout the state, bringing the total number of metropolitan areas covered by Traffic.com sensors to five.

"At Traffic.com we are driven to deliver a quality product to our partners and consumers," said David L. Jannetta, president, Traffic.com. "Caltrans' decision to extend its relationship with Traffic.com for comprehensive traffic solutions for San Jose and Sacramento is a testament to our position as the national leader in providing reliable, accurate traffic services. We are pleased to be offering valuable, customizable traffic solutions to the 23 million people that live and work in these five areas."

Traffic.com is installing the sensor system and providing comprehensive traffic services at no cost to California State or local government agencies. As part of the FHWA-funded TTID program, Traffic.com will pay for the construction, operational costs, and ongoing maintenance of the sensors and will also reinvest a portion of the revenue to expand the system. Traffic.com plans to place these sensors along major expressway portions of I-280, I-680 and US-101 around the San Jose area and portions of CA-99, I-5, I-80 and US-50 near Sacramento, with completion targeted by year-end 2007. According to the 2005 Urban Mobility Report issued by the Texas Transportation Institute, traffic congestion cost Sacramento area drivers $619 million and San Jose drivers $823 million in 2003.

"Caltrans is pleased to continue to build on our successful partnership with Traffic.com by adding San Jose and Sacramento to the metropolitan areas covered," said Randy Iwasaki, chief deputy director of Caltrans. "The state of California has been a pioneer in developing innovative public-private relationships and we are pleased to be able to expand the Traffic.com program."

Traffic.com will use the data collected by these new sensors and combine it with data from Caltrans' Traffic Monitoring System and the Performance Monitoring System (PeMS) to distribute digital traffic data and incident/event information to drivers in California across multiple platforms, including television, radio, Web, phone, and wireless device. This public-private partnership will supply drivers with the valuable and comprehensive traffic information they need to manage the multitude of traffic problems they encounter each day.

About Traffic.com, Inc.

Traffic.com(R) is the leading provider of personalized traffic information for drivers coast to coast. Through the industry's most comprehensive data collection infrastructure, Traffic.com offers consumers real-time customized traffic reports in 50 metropolitan areas. These personalized consumer reports are complete with predictive traffic trends, vehicle speeds, congestion levels, travel times, and delay times delivered via web, wireless device, radio, television, and in-vehicle navigation systems. Traffic.com's ability to distribute traffic information via specialized data feeds and across multiple platforms creates unique, cross-platform branding opportunities for advertisers, enabling them to expand their reach and target consumers with useful, relevant content multiple times per day. Traffic.com's growing list of business partners includes AOL, Microsoft, The Weather Channel(R), Comcast, Garmin International Inc., Motorola's VIAMOTO(TM) Solutions, and XM Satellite Radio.

Forward-Looking Statement 

This press release includes forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Because these statements apply to future events, they are subject to risks and uncertainties that could cause actual results to differ materially, including Traffic.com's history of operating losses, risks associated with its recently expanded business model, the substantial competition it faces, its ability to maintain advertiser relationships and attract additional advertisers, its dependency on government contracts, possible failure of its traffic information management system, and failure to protect its intellectual property or to defend against intellectual property claims of others. These and other risks are described in greater detail in Traffic.com's filings with the Securities and Exchange Commission. Traffic.com may not actually achieve the goals or plans described in its forward-looking statements, and investors should not place undue reliance on these statements. Traffic.com disclaims any intent or obligation to update any forward-looking statements as a result of developments occurring after the date of this press release.

trfc-g

The Traffic.com logo is a trademark and Traffic.com is a registered trademark of Traffic.com, Inc. All other product or service names or marks are the property of their respective owners. (C) 2006 Traffic.com, Inc.