Wyoming Department of Transportation Selects Iteris, Inc. for Intelligent Transportation Systems Strategic Plan.

Business Editors

ANAHEIM, Calif.--(BUSINESS WIRE)--Dec. 23, 1999

Rural ITS Contract Valued at a Half a Million Dollars

Meyer Mohaddes Associates, Inc. (MMA), a wholly owned subsidiary of Iteris, Inc. (formerly Odetics ITS, Inc.) today announced it has been selected by the Wyoming Transportation Department for the Intelligent Transportation Systems Strategic Plan Project, a contract valued at $500,000.

Working closely with stakeholders, the statewide ITS Strategic Plan will define an implementation strategy for future systems deployment and operation for the state of Wyoming. The Plan will address both small urban and rural applications through a comprehensive process to understand ITS benefits, identify related transportation needs, develop strategies to meet the needs, evaluate potential applications, and define specific projects for short and long term deployment consideration.

"The Wyoming Department of Transportation realizes the need to use specific technologies to address their transportation challenges. This project, combining extensive input from stakeholders with a proven systematic approach, will provide them with a roadmap to implement a well integrated ITS system now and into the future," said Abbas Mohaddes, president of MMA and vice president of Iteris, Inc.

In accordance with the WYDOT contract, MMA will conduct activities in three phases. Phase I will identify the interested stakeholders, begin ITS awareness and education, and develop initial potential ITS technology areas for further study. Phase II will develop the strategic plan through a complete understanding of Wyoming's needs, requirements, and solution alternatives. When implemented, Phase III will specifically address Commercial Vehicle Operations (CVO) applications including developing a Commercial Vehicle Information Systems and Networks (CVISN) Deployment Plan.

"The deployment of ITS is a positive development for a number of reasons. It promotes tourism and safety, and has opened channels of dialogue between our stakeholders that is creating a positive synergy," said Jim Gaulke, strategic plan project manager for WYDOT. "We're looking forward to working with MMA. All of us are excited to see this project finally come to pass."

The transportation challenges that Wyoming faces are unique. The state's tourism industry is of utmost importance to the state's economy. Consequently the travel needs of tourists are a primary focus for the Department of Transportation. Wyoming's two national parks and three other national recreational areas, scenic byways, and numerous western heritage historic sites, dictate the need for an efficient and safe transportation network.

With approximately 480,000 residents, spread throughout the ninth largest state, Wyoming is one of the least densely populated states in the nation. For this reason, rural highways play a more significant role in travel and transportation than in almost any other state. It is critical that vehicles travelling on these roads be provided with accurate and useful information regarding weather and road conditions.

Iteris designs, develops, markets and implements software based solutions that improve the safety and efficiency of vehicle transportation. Iteris is a leading provider of video sensor systems and transportation management and traveler information systems for the intelligent transportation systems industry. Iteris, Inc. currently is a 93% owned subsidiary of Odetics, Inc. (NASDAQ:ODETA & ODETB). Iteris' headquarters are located in Anaheim, California. For more information about Iteris, Inc. see the company's web site at www.iteris.com.

IMPORTANT NOTICE:

This release contains statements, which may be deemed to be forward looking. Actual results could differ materially from those projected in the forward-looking statements as a result of risk factors such as: the timing and ability of Iteris to complete its initial public offering, short product lives, technological shifts, current technical issues that cannot be resolved on a timely basis, component availability, competition (including new and directly competitive products from others), pricing pressures, incorrect assumptions regarding market demand, and the significant uncertainty of market acceptance of new products by both distributors and end-user customers.

Investors are strongly encouraged to review the risk factors set forth in Odetics, Inc.'s Annual Report for the fiscal year ended March 31, 1999 on Form 10-K and Quarterly Report for the quarter ended September 30, 1999 on Form 10-Q filed with the SEC.