Nissan Canada Receives Award for Deployment of Iteris and Valeo Lane Departure Warning Technology; Canada's Largest Consumer Services Organization Recognizes Value of Safety Innovation.

ANAHEIM, Calif. -- Iteris Inc. (AMEX:ITI), a leader in the development of vision-based technology that enhances driver safety, today announced that its Lane Departure Warning technology, jointly developed for Nissan with Valeo, a global automotive equipment supplier, was recognized as a significant contribution to vehicle safety by the Canadian Automobile Association (CAA). During a special presentation held at the Canadian International Auto Show in Toronto, Nissan Canada was presented with the Pyramid Award for Safety Innovation for being the first automobile manufacturer to offer a Lane Departure Warning System in its vehicles.

For the 2005 awards, the CAA solicited entries from all vehicle manufacturers in Canada to determine the most significant safety innovations and environmental initiatives. The CAA's expert panel reviewed the submissions, and determined that Nissan Canada and two other manufacturers best exemplified the spirit of the Pyramid Awards.

"Iteris is very proud of the overwhelming response Nissan is receiving for the deployment of our Lane Departure Warning technology in its Infiniti vehicles," said Jack Johnson, CEO of Iteris, Inc. "Our goal is to continue developing products for the automotive and commercial truck markets that will improve the safety of vehicles and motorists worldwide," concluded Johnson.

Driver fatigue and distraction that cause motorists to drift out of their lanes contributes to an estimated 16,000 fatalities on North American roads each year. The LDW technology, available on the 2005 Infiniti FX35 and FX45, uses an onboard camera and dedicated computer to recognize lane markings on the highway.

If the vehicle moves outside its lane, the technology emits an audible warning to the driver, alerting them to a possible dangerous situation. The LDW system will also be available as part of an option package on the 2006 M45 performance luxury sedan.

The CAA Pyramid Awards for Safety Innovation and Environmental Initiatives recognize the Canadian vehicle manufacturers that have made the most significant contributions to either vehicle and road safety or environment issues in Canada within a given year.

Iteris adds this Canadian accolade to an impressive list of honors that the LDW system has already received in the last year. These include being named one of "Ten Gadgets That Will Improve Your Life" by the editors at Forbes.com; one of 50 leading technology innovations on the "Scientific American 50;" "One of the Most Valuable Products to be Introduced in Trucking for 2004" by RoadStar Magazine; and to the "Nifty Fifty" Best Products list by Heavy Duty Trucking Magazine.

The CAA is a federation of 11 automobile clubs serving approximately four and a half million members through 130 offices across Canada. CAA provides a wide range of member services and works to improve traveling and motoring conditions at home and around the world. Complete survey results and background information on the awards can be accessed through CAA's website at www.caa.ca.

About Valeo

Valeo is an independent industrial group fully focused on the design, production and sale of components, integrated systems and modules for cars and trucks. Valeo ranks among the world's top automotive suppliers. The Group has 129 plants, 65 R&D centers, 9 distribution platforms and employs 67,300 people in 26 countries worldwide. www.valeo.com

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 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 include, but are not limited to, statements about the roll-out and market acceptance of our LDW technology, the production schedules and our future prospects. 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).