The $600,000 Award Expands Iteris' Systems' Technology in United Arab Emirates 

SANTA ANA, Calif.- Iteris, Inc. (NYSE Amex:ITI), a leader in the traffic management market that focuses on the application and development of advanced technologies, today announced that the Company has received an award to assist the Abu Dhabi Department of Transport in the development of an area-wide Intelligent Transportation Systems Architecture. Work on the project is expected to begin immediately and take approximately nine months to complete.

The award teams Iteris with locally-based transportation and ITS consultancy TrafQuest (the Team) in guiding the development of an emirate-wide ITS Strategy and Implementation Plan that will take Abu Dhabi's transport services to the forefront of world transport systems. Abu Dhabi, capital of the emirate bearing the same name, is also the federal capital of the seven-emirate United Arab Emirates (UAE).

Following a comprehensive review of existing conditions, the Team will identify ITS initiatives to move the Emirates towards a more efficient, safe, and integrated ITS infrastructure. An ITS architecture will be developed to guide implementation of specific technologies and applications, and their impacts will be identified and assessed. The initiatives will incorporate all modes by including i rail and river-borne transport systems in addition to incorporating all major roadway networks within the Emirate of Abu Dhabi, comprising the DOT's main roadway network, Abu Dhabi islands' network, the Al-Ain network, and the Western Region network. TrafQuest will lead stakeholder consensus building, local coordination, and management, while Iteris will lead the systems architecture task.

"This project is going to lay the groundwork for implementing future ITS projects in the Emirate of Abu Dhabi," noted Engineer, Ahmed Al Mutawa, ITS program manager at the Highway Sector of Abu Dhabi DOT. "The strategic approach specified by the Abu Dhabi DOT is structured to ensure seamless integration of on-going and future ITS projects. The primary goal of this project is to deliver a sustainable, world-class transport system which enhances safety, mobility, and cultural vitality while preserving and protecting the emirate's unique natural environment as envisioned in the Surface Transport Master Plan and Plan Abu Dhabi 2030. We are delighted to work with the TrafQuest-Iteris Team on this challenging project. This Team offers extensive and impressive expertise in the performance of similar projects."

"The ITS strategy shall enable us to realign our existing and future ITS initiatives with this vision. We always welcome new ideas and perspectives and thus are always interested in sharing our vision for transport with different, highly experienced companies," added Engineer, Faisal Al Suwaidi, executive director of the Highway Sector at the Abu Dhabi DOT.

"The Abu Dhabi ITS Services contract is an important step in expanding Iteris' Systems' technology consulting capabilities internationally and specifically in the United Arab Emirates," commented Abbas Mohaddes, president and chief executive officer of Iteris. "We are looking forward to a successful collaboration with TrafQuest on this exciting and important project serving the Abu Dhabi Department of Transport. This contract demonstrates the DOT's proactive approach and will set the stage for several ITS deployment projects to ease congestion in Abu Dhabi."

"TrafQuest is delighted to work with Iteris, leveraging our strong local presence." stated Dr. Ra'id Breiwish, president of TrafQuest. "We are pleased to assist Abu Dhabi in this very important contract."

About TrafQuest

TrafQuest is a UAE-based transportation firm with expertise in traffic operations, transportation planning, Intelligent Transportation Systems (ITS), Electronic Toll Collection (ETC), transportation safety, project management, mapping, and GIS.

About Iteris, Inc.

Iteris, Inc. is a leader in the traffic management market focused on the development and application of advanced technologies that reduce traffic congestion, minimize the environmental impact of traffic congestion, and improve the safety of surface transportation systems. Combining outdoor image processing, traffic engineering, and information technology, Iteris offers a broad range of Intelligent Transportation Systems and driver safety solutions to customers worldwide. Iteris is headquartered in Santa Ana, California with offices throughout the U.S., Europe, and Asia. Investors are encouraged to contact us at 888-329-4483, 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 success and timing of this acquisition and our future prospects.

Important factors that may cause such a difference include, but are not limited to our ability to specify, develop, and complete our technologies in a timely manner; budget constraints and changing governmental priorities; the timing and successful completion of this contract; the potential unforeseen impact of product offerings from competitors and other competitive or governmental pressures; and the general economic, political, and specific conditions in the middle-eastern, global and domestic markets we address. 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 website (www.sec.gov).