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December 4th, 2008
Passage of Two Key Transportation Measures in California is Expected

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PR – Iteris, Inc. (AMEX:ITI), a leader in the traffic management market that
focuses on the application and development of advanced technologies,
today announced the passage of two key measures in California, Measure R
in Los Angeles County and Proposition 1A statewide, are expected to add
significant funds dedicated to traffic and transportation improvements.

Measure R will finance new transportation projects, as well as provide
funding for many projects already in place through the implementation of
a half-cent sales tax for Los Angeles County. The measure was officially
passed on December 2, 2008, and is expected to become law on January 2,
2009, with the tax taking effect in July 2009.

Measure R is projected to generate $8.5 billion over the next ten years
and a total of $40 billion over 30 years for congestion relief projects
— funding everything from new rail and/or bus rapid transit projects;
commuter rail improvements; Metro Rail system improvements; highway
projects; and local city sponsored transportation improvements. In
addition, fifteen percent of revenues will be returned to local
jurisdictions for traffic improvements, signal timing, bus service, and
transit projects.

This broad reaching measure is expected to positively impact several of
Iteris’ ongoing transportation systems projects, such as:

  • “Subway to the Sea”: Iteris is
    currently part of the team preparing the Alternatives Analysis that
    will recommend the alignment and station locations. With the funding
    allotted through Measure R, this project may now be advanced to the
    next step which is the Environmental Impact review and Preliminary
  • Exposition Light Rail: Iteris is
    providing traffic engineering services on the design/build team
    constructing Phase 1 of the Exposition Light Rail line from Downtown
    Los Angeles to Culver City. Measure R could provide the additional
    capital needed to initiate Phase 2, which will extend the line from
    Culver City to Santa Monica. Iteris is currently part of the team
    preparing the Environmental Impact review of the Phase 2 project.
  • Metro Orange Line Extension:
    Iteris is completing preliminary engineering for the Metro Orange Line
    Extension in the San Fernando Valley. Measure R may influence the
    board’s decision to implement the project and proceed with the
  • I-710 South and 710 Tunnel Gap Closure
    Projects: Iteris is performing traffic analysis and truck
    forecasting for these projects that will upgrade the freeway and
    improve truck and traffic flows between the Ports of Los Angeles and
    Long Beach and the SR-60 freeway, as well as complete the I-710
    freeway with a tunnel below South Pasadena and Pasadena.
  • Burlington Northern Santa Fe Grade
    Separations: Iteris conducted the transportation studies in the
    Environmental Impact report for the construction of rail and roadway
    grade separations in the Gateway Cities area.

The passage of Proposition 1A allows $9.95 billion in bonds to be issued
to establish a clean, efficient high-speed train service linking
Southern California, the Sacramento/San Joaquin Valley, and the San
Francisco Bay Area — easing congestion on California highways and

For over a year, Iteris has been part of a large engineering team
completing the environmental impact report and environmental impact
statement for the Los Angeles to Irvine leg of the High Speed Rail
project. With the approval of the funding measure, this project is
expected to actively continue into 2009.

Iteris is also part of a team which was selected to complete the
environmental impact report and environmental impact statement for the
Los Angeles to San Diego (via the Inland Empire) route of the system.
With the passage of the measure, it is expected that work on this leg of
the system to be authorized in 2009.

“I am impressed that despite the economic challenges faced by
California, voters have remained committed to improving the quality of
their transportation systems,” said Abbas Mohaddes, Iteris’ president
and chief executive officer. “I believe that the funding provided by
Measure R and the high speed rail bonds will create additional
opportunities for Iteris to provide traffic management and transit
product and services to Los Angeles County and the state of California.
We are looking forward to working with both local and state agencies
with the ultimate goal of reducing traffic congestion while improving
commutes and the quality of life for all travelers.”

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