Iteris Receives Yankee Cup Award at the 2005 Boston Auto Show; Award Presented by Stanley Museum Recognizes Technology Innovation and Ingenuity.

ANAHEIM, Calif. -- Iteris Inc. (AMEX:ITI), a leader in the development of vision-based technology that enhances driver safety, today announced that it received the Yankee Cup Award at a ceremony held at the 2005 Boston Auto Show for its innovative Lane Departure Warning (LDW) technology now available on passenger cars and commercial trucks worldwide.

The Yankee Cup Award, sponsored by the Stanley Museum of Maine, is awarded each year to a company the museum believes has made the most significant advances in automotive safety. In cooperation with the New England Automotive Press Association, Iteris was nominated as a leading candidate for this award. Past Yankee Cup Award winners include Mercedes and Ford.

Established in 1981, the Stanley Museum keeps and shares the traditions of American ingenuity and creativity as exemplified by the Stanley family in order to inspire those values in children and adults. The museum commemorates and preserves the heritage of Stanley family genius. The famous "Stanley Steamer" automobile was invented by Francis Edgar Stanley and manufactured by him and his twin brother, usually referred to as the Stanley twins, F.E. and F.O.

"We are honored to be recognized by the Stanley Museum and the New England Automotive Press Association for the value our Lane Departure Warning system brings to the industry and consumers," said Jack Johnson, CEO of Iteris. "Receiving this Yankee Cup Award underscores our commitment to develop technology that helps solve the most pressing problems in the automotive industry today."

Iteris developed its vision-based LDW technology to help address the nation's single largest cause of automotive-related highway fatalities - unintended lane changes caused by distracted, inattentive or drowsy drivers. Iteris' LDW system was the first of its kind to be deployed in the commercial truck and passenger car markets and it still remains the only vision-based system in mass production in Europe and the U.S.

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 has headquartered in Anaheim. Investors are encouraged to contact the company at 714-774-5000, 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 are subject to change and we undertake no obligation to revise or update publicly any forward-looking statements for any reason. These statements are not guarantees of future performance and are subject to certain risks, uncertainties and assumptions that are difficult to predict. Therefore, 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 automotive production schedules and agendas; the timing and successful completion of customer qualification of our products and the risks of non-qualification; market acceptance of our LDW system and the vehicles that incorporate our systems; our ability to specify, develop, complete, introduce, market and transition our products and technologies to volume production in a timely manner; the potential unforeseen impact of product offerings from competitors and other competitive pressures; and the general economic and political conditions and specific conditions in the markets we address, including the general economic slowdown and volatility in the automotive sector. 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 Web site (www.sec.gov).