Iteris Reports Strong Orders for Its Lane Departure Warning System; LDW Sales up 75 Percent Year-Over-Year.

Business Editors/Automotive Writers

ANAHEIM, Calif.--(BUSINESS WIRE)--Feb. 25, 2004

Commercial Truck Market's Increased Focus on Safety Is Driving Force

Behind Growth in Sales

Iteris, Inc., the operating subsidiary of Iteris Holdings, Inc. (OTCBB:ITRSA)(OTCBB:ITRSB), today announced that fiscal year-to-date sales of its breakthrough Lane Departure Warning System (LDWS) for the U.S. and European commercial truck markets have increased 75 percent compared to the same time period last year.

"We are extremely pleased with Iteris' strong sales of the LDWS in the commercial truck market," said Francis Memole, general manager and vice president of vehicle sensors for Iteris, Inc. "We have exceeded our goals in fiscal 2004, and the continued strength in sales is a strong indication that safety remains a top priority for the trucking industry. With more than 1 billion kilometers of use in commercial trucks in the U.S. and Europe, our LDWS is a proven product that we believe has the potential to become standard equipment on commercial trucks in the near future."

The LDWS was developed by Iteris to address the nation's single largest cause of highway fatalities -- unintended lane changes caused by drowsy or inattentive drivers. According to the National Highway Traffic Safety Administration (NHTSA), more than 1.5 million automobile accidents are caused by distracted or drowsy drivers, a staggering statistic that claims the lives of over 18,000 people every year in the U.S.

Iteris' LDWS has been successful in the European heavy truck market since 2000 when Mercedes began installing the system in its Actros trucks. MAN Trucks, also based in Europe, offers the technology as optional equipment on its new trucks. In the U.S., Freightliner LLC was the first to offer Iteris' LDWS as a factory-installed option. Shortly thereafter, International Truck and Engine Corp., the nation's largest commercial truck and mid-range diesel engine producer became the first company to offer Iteris' LDWS as an aftermarket option.

Building on its success in the commercial truck market, Iteris will begin production of its first North American LDWS passenger car application later this year.

"Over the past couple years, Iteris has enjoyed early success with this safety solution in the Class 8 truck market in Europe, but with nearly 250 million vehicles worldwide, we've always viewed the passenger car market as the biggest market opportunity -- and a key opportunity for Iteris," concluded Memole.

About Iteris

Iteris Inc., is a majority owned subsidiary of Iteris Holdings Inc., and is a leading provider of outdoor machine vision systems and sensors that optimize the flow of traffic and enhance driver safety. It has combined outdoor image processing, traffic engineering, and information technology to offer a broad range of transportation and safety solutions. Iteris Holdings and Iteris Inc. are headquartered in Anaheim, California. Investors are encouraged to contact us 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" 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 our future prospects, our production schedules and automotive standards. 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 the market acceptance of our technologies and of the products that incorporate our technologies, automotive production schedules and agendas; 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 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 Holdings, 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).