Lane Departure Warning Technology Gets Boost in Proposed Tax Incentive Legislation; HR-3591 Will Lead to Reduced Highway Crashes and Save Lives.

ANAHEIM, Calif. -- Iteris Inc. (AMEX:ITI) today announced that a bill has been introduced in Congress that provides financial incentives to buyers of passenger cars and commercial trucks who purchase safety-oriented advanced technology devices such as Iteris' Lane Departure Warning ("LDW") systems.

Congressman Mike Rogers (R-MI) introduced the bill (HR-3591) "to amend the Internal Revenue Code of 1986 and to provide a credit to facilitate the accelerated development and deployment of crash avoidance and crash protection systems." The legislation would allow a $500 tax credit when an auto or truck is purchased with LDW equipment. Aftermarket installations are also expected to be eligible for this tax benefit under the proposed legislation.

"This tax incentive legislation seeks to give auto and truck buyers another reason to purchase safety options such as Iteris' LDW system," said Jack Johnson, CEO of Iteris. "We believe this legislation will accelerate more widespread adoption of our LDW system and other intelligent vehicle technologies that help make our highway travel much safer."

Iteris' LDW system uses advanced imaging technology and proprietary software algorithms to audibly warn drivers when their car or truck is unintentionally drifting out of its lane. Federal accident data indicate that unintended road and lane departures account for 59 percent of total fatalities. A recent year-long study by the Virginia Tech Transportation Institute (VTTI) concluded that nearly 80 percent of vehicle crashes involve driver distraction.

Iteris introduced the world's first commercially available Lane Departure Warning system, initially installed on trucks in Europe and the U.S. Iteris' LDW technology made its debut on passenger vehicles with its introduction on the Nissan Infiniti FX crossover sport utility vehicle in 2004 and the Infiniti M earlier this year.

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 Inc. has headquarters 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," "should," "seeks," "estimates," "may," 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 market acceptance and the impact of our LDW system. 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 timing and successful completion of customer qualification of our products and the risks of non-qualification; the market acceptance of our technologies and of the products that incorporate our technologies; the cost of our systems to the end user; our ability to specify, develop, complete, introduce, market and transition our products and technologies to volume production in a timely manner; automotive production schedules and agendas and economic and market conditions in general. 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).