Iteris’ Lane Departure Warning System to be Integrated into Two Passenger Vehicle Models with Another OEM Customer

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 its partner, Valeo, has succeeded in winning the supply contract to provide Iteris’ Lane Departure Warning (LDW) technology to another global, mass-market automotive Original Equipment Manufacturer (OEM). Iteris’ LDW will be integrated into Valeo’s multi-function front camera system and will be offered as an option on two new vehicles scheduled to start production in 2011.

As a pioneer in the field, Iteris’ vision based LDW system was first introduced through its partner Valeo with Infiniti in 2004 and now is offered on four Infiniti vehicles sold domestically and two Nissan vehicles sold abroad. With the addition of this new OEM customer, Iteris’ LDW system will now be available on eight vehicles offered by two global mass market OEM’s worldwide.

"I am pleased that Valeo was awarded a new contract with a second passenger car OEM to provide our LDW system as an option on two new vehicles,” commented Mr. Abbas Mohaddes, president and chief executive officer of Iteris. "It is clear by the current state of the market that advanced driving assistance features such as LDW are becoming more widely accepted by both passenger car and heavy truck OEM’s, as well as their customers, as a viable technology designed to significantly improve highway safety.”

"We are again pleased to supply Iteris’ LDW system to a passenger car OEM as part of our innovative multi-function front camera system,” commented Thomas Veigel, General Manager of Valeo Detection Systems. "We have partnered with Iteris for many years and believe that the LDW feature and other active safety features are gaining traction in the market as the benefit of crash avoidance technologies are embraced by the industry.”

Iteris licensed its LDW technology to Valeo in 2003 and collects a royalty for each LDW unit sold to the passenger car market (class 1 and 2 vehicles). Additionally, Iteris sells its LDW feature and its suite of active safety products and fleet safety software solutions directly to the heavy truck market in Europe, Japan, and North America. With more than 10 years in series production in both the passenger car and heavy truck markets worldwide, Iteris is widely regarded as a leader in the field.

AutoVue LDW System

Iteris’ stand alone LDW system is a small, integrated unit consisting of a camera, onboard computer, and sophisticated image processing algorithms. The system’s camera tracks visible lane markings and its algorithms detect when a vehicle drifts toward an unintended lane change. If this occurs, the system automatically emits a distinctive rumble strip or other audible/haptic warning, alerting the driver to make a correction. LDW is a proven, reliable technology that is well positioned to become an integral part of any comprehensive vehicle safety solution. A pioneer in vehicle safety technology, Iteris developed the world’s first production Lane Departure Warning System and is available as an OEM option in passenger cars and as an OEM and aftermarket option on heavy trucks worldwide.

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 infrastructure. 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 North America and in Europe and Asia. Investors are encouraged to contact us at 888-329-4483, or at www.iteris.com.

About Valeo

Valeo is an independent industrial Group fully focused on the design, production, and sale of components, integrated systems, and modules for the automotive industry, mainly for CO2 emissions reduction. Valeo ranks among the world's top automotive suppliers. The Group has 117 plants, 21 Research centers, 40 Development centers, 10 distribution platforms, and employs 56,000 people in 27 countries worldwide.

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 performance, acceptance, and expected benefits of our technology including our AutoVue Lane Departure Warning, our market opportunities both domestically and abroad, our strategies, 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 the market acceptance of our technologies and of the products that incorporate our technologies; commercial vehicle and automotive production schedules and agendas including passenger car OEM production schedules; 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 and commercial vehicle 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 website (www.sec.gov).