DaimlerChrysler First to Offer AutoVue Option on Trucks in Europe

Iteris, Inc., a subsidiary of Odetics, Inc. (Nasdaq: ODETA - Nasdaq: ODETB), has achieved the automotive industry's first large scale deployment of video-based in-vehicle sensors with the production order shipment of its AutoVue(TM) lane departure warning system to DaimlerChrysler in Europe.

The AutoVue system is now available as an option on Mercedes Actros trucks.

"The lane departure warning system DaimlerChrysler and Iteris have jointly developed will play a significant role in enhancing the safety of our trucks," said Dr. Hartmut Marwitz, senior vice president and head of European truck development for DaimlerChrysler. "Furthermore we think that this system represents the basis for future video-signal-based safety systems."

Francis Memole, vice president of vehicle sensors for Iteris commented, "We see a bright future for AutoVue in the automotive industry worldwide. This product has the potential of significantly reducing the number of lane departure related accidents and limiting the number of injuries and deaths that occur as a result."

Statistics show that tens of thousands of automobile accidents are caused each year by unintended lane departures. Lane departures are also identified as a major cause of roll over incidents involving sport utility vehicles (SUVs) and light trucks. AutoVue was developed to reduce the number accidents by warning drowsy or inattentive drivers of a possible unintended lane departure before it occurs.

"We have spent several years developing the AutoVue system," said Memole. "It's exciting to see it out in the market and available on new trucks."

The AutoVue system uses a highly sensitive, computerized camera and a combination of sophisticated lane recognition algorithms and proprietary image recognition software and hardware to track lane markings in the road. AutoVue is a compact device that resides inside the vehicle on the windshield.

When the AutoVue system detects that an unintended lane change is about to occur, it alerts the driver by emulating a distinctive rumble strip sound, allowing the driver time to correct the situation in a controlled manner. This particular alarm sound was chosen after thorough research proved it to be most effective for warning a driver without causing them to overreact.

"With its advanced engineering and relatively low-cost, AutoVue may very soon become as much a part of overall vehicle safety as airbags and ABS brakes," Memole concluded.

AutoVue works effectively both day and night and in most weather conditions where the lane markings are visible. By simply using the turn signal, a driver indicates to the system that a planned lane departure is intended and the alarm does not sound. Additional sensory features not yet announced, are in development and will be added to the system in the near future.

About Iteris, Inc.

Iteris, Inc., a subsidiary of Odetics, Inc., is a leading provider of advanced information, software and sensor technologies that improve the efficiency and safety of surface transportation. Iteris has combined information technology, system integration and applied sensors to offer a broad range of transportation solutions. For more information, see the Iteris Web site at www.iteris.com.

Important Notice:

This release contains statements, which may be deemed to be forward-looking. Actual results could differ materially from those projected in the forward-looking statements as a result of risk factors such as: short product lives, technological shifts, current technical issues that cannot be resolved on a timely basis, component availability, competition (including new and directly competitive products from others), pricing pressures, incorrect assumptions regarding market demand, and the significant uncertainty of market acceptance of new products by both distributors and end-user customers.

Investors are strongly encouraged to review the risk factors set forth in the Odetics, Inc.'s Annual Report for the fiscal year ended March 31, 1999 on Form 10-K and Quarterly Report for the quarter ended Dec. 31, 1999 on Form 10-Q filed with the SEC.