Iteris Awarded $1.3 Million Contract to Provide Traffic Engineering and Planning Manuals for Abu Dhabi's Department of Transport

? Two-Year Contract Reflects Iteris' Growing Commitment to the Middle East Region

SANTA ANA, Calif. ? Iteris, Inc., a leader in traffic management focused on the development and application of advanced technologies, has been selected to help develop uniform and standardized engineering and planning manuals, guidelines, and procedures for use by the Abu Dhabi Department of Transport (Abu Dhabi DOT). Work on the project is expected to begin immediately.

Iteris will work with the Abu Dhabi DOT to develop manuals, guidelines, and procedures tailored to the particular needs of the Emirate based on best practices from around the world. Iteris teamed with TrafQuest, whom they had worked with to develop an Intelligent Transportation System (ITS) Strategy and Action Plan for the Abu Dhabi DOT, including the development of an ITS Architecture. The joint contract is valued at approximately $1.3 million for Iteris.

?We are delighted to continue our working relationship with Iteris,? said Eng. Faisal Al Suwaidi of the Abu Dhabi DOT. ?The ITS study for the DOT was a great success, so it was natural to select the TrafQuest/Iteris team for these manuals. One of the main reasons for this selection was the extensive knowledge and expertise they provide.?

Abbas Mohaddes, president and CEO of Iteris, stated: ?Our staff has developed an excellent working relationship over the years in the UAE and with the Abu Dhabi DOT in particular. The new project offers a tremendous opportunity for Abu Dhabi DOT in their quest as a leader in its traffic engineering and transportation planning practices. We recently opened a permanent office in Abu Dhabi to serve as a focal point for our work in the region. This new project will provide us with an opportunity to expand our presence providing technology based transportation products and services in the Middle East.?

The City of Abu Dhabi is the capital of the Emirate of Abu Dhabi and the federal capital of the United Arab Emirates (UAE), a sovereign country of seven Emirates. Abu Dhabi is the largest of the Emirates, and the federal seat of government. The City of Abu Dhabi is the largest city in the Emirate.

About Iteris
Iteris, Inc. (NYSE Amex: ITI) is a leader in traffic management 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, Asia and the Middle East. 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 project and our future prospects in the Middle East and all the markets our products and services address.

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 project; the potential unforeseen impact of product and service offerings from competitors and other competitive or governmental pressures; and the general economic, political, and specific conditions in the Middle East and all the 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).