Iteris Awarded $1.4 Million Traffic Signal Synchronization Project from the Orange County Transportation Authority

- Award Further Expands Relationship with OCTA -

SANTA ANA, Calif. – July 2, 2014 – Iteris, Inc., a leader in providing intelligent traffic management and weather information solutions, was awarded a $1.4 million contract by the Orange County Transportation Authority (OCTA) to provide traffic signal improvements. The project is part of the renewed Measure M Regional Traffic Signal Synchronization Program, which was approved by voters in 2006 for a 30-year extension.

Under this contract, Iteris will update and synchronize traffic signals along Newport Boulevard in Orange County, California. Newport Boulevard is a major arterial to many tourist attractions in the area, including the Orange County Fairgrounds in Costa Mesa and the Balboa Peninsula in Newport Beach. Iteris will also construct new underground fiber-optic cables for the roadway and strategically deploy traffic cameras at major intersections, allowing the cities to proactively monitor traffic conditions in real-time.

"We believe signal coordination is the foundation for better traffic management," said Abbas Mohaddes, president and CEO of Iteris. "It provides a better travel experience with reduced stops and delays, and could increase safety at intersections and reduce emissions. OCTA is constantly measuring the performance of Orange County corridors and proactively managing conditions. We look forward to our continued relationship with them."

Measure M is the half cent sales tax for transportation improvements that was initially approved by Orange County voters in 1990, and was renewed by voters for a 30-year extension in 2006. This project with OCTA is expected to commence immediately.

About Iteris, Inc.
Iteris, Inc. (NYSE MKT: ITI) is a leader in providing intelligent information solutions to the traffic management market. The company is focused on the development and application of advanced technologies and software-based information systems that reduce traffic congestion, provide measurement, management, and predictive traffic and weather analytics, and improve the safety of surface transportation systems. By combining its unique IP, products, decades of expertise in traffic management, hyper-local weather solutions and information technologies, Iteris offers a broad range of Intelligent Transportation System (ITS) solutions to customers worldwide. The firm is headquartered in Santa Ana, California, with offices nationwide and in the Middle East. For more information, please call 1-888-329-4483 or visit www.iteris.com. Also visit us on Facebook, Twitter, and YouTube.

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 timing and success of the project and the performance and utility of our products and solutions. Such statements are not guarantees of future performance and are subject to certain risks, uncertainties, and assumptions that are difficult to predict, and 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, our ability to successfully complete each phase of the project; the potential impact of product and service offerings from competitors and other competitive pressures; the broad adoption of technology based analytics solutions in the agriculture market; and the impact of general economic, political, and other conditions in 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).