ANAHEIM, Calif.--(BUSINESS WIRE)--Aug. 1, 2001--Odetics (Nasdaq:ODETA) (Nasdaq:ODETB) and its Iteris subsidiary announced today the successful completion of an $11.1 million transaction, including a significant new equity infusion from strategic and institutional investors, DaimlerChrysler Venture GmbH (DCV) and GIC Special Investments Pte Ltd, the direct equity investment arm of the Government of Singapore Investment Corp.

Odetics previously announced that it had reached agreement for this financing on July 19, 2001. The transaction included the issuance of Iteris Series A Preferred Stock and Iteris Common Stock in exchange for $5.5 million in cash, plus the conversion of approximately $4.2 million in debt.

In addition, Odetics sold $1.4 million of Iteris Common Stock to a group of investors, which included Odetics and Iteris management. The $5.5 million Series A Preferred Stock financing was priced at a pre-money valuation of approximately $45 million for Iteris.

"We are delighted to increase our investment and ownership in Iteris," stated Alexander Nediger of DaimlerChrysler Ventures. "We believe the company's technology and products are well positioned for a number of emerging transportation infrastructure and telematics applications for major automotive OEMs and transportation companies."

In conjunction with this financing, Iteris has also signed a letter of intent with a lender for an operating line of credit providing for borrowings of up to an additional $5 million, based upon qualified assets.

Jack Johnson, CEO of Iteris commented: "We are very pleased to announce the closing of this significant transaction for the company, especially given current market conditions. This financing transaction, led by DCV, an important strategic investor, and GIC, a major international institutional investor, will enable Iteris to completely and independently fund its current business plan."

Iteris was represented in the transaction by its sole placement agent and advisor, L.H. Friend, Weinress, Frankson & Presson LLC.

About GIC Special Investments

GIC Special Investments (GIC SI) is the private equity investment arm of GIC, a fund management company established in 1981 to manage the foreign reserves of Singapore. GIC SI manages an international portfolio of investments comprising venture capital and private equity funds, and direct investments. Reflecting its global orientation, GIC SI operates out of offices in key financial centers around the world and has headquarters in Singapore.

DaimlerChrysler Venture GmbH

DaimlerChrysler Venture GmbH, a wholly owned subsidiary of DaimlerChrysler AG, was established in 1997. DCV sponsors innovative business founders in high-tech areas, related to DaimlerChrysler's core businesses, by providing venture capital, individual consulting and assistance. DCV acts as a partner holding a minority share, a silent partnership or in the form of a shareholder loan.

About Iteris Inc.

Iteris, 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 telematics and transportation solutions. For more information, see the Iteris Web site at http://www.iteris.com.

About L.H. Friend, Weinress, Frankson & Presson LLC

L.H. Friend, Weinress, Frankson and Presson LLC, is an Irvine, Calif.-based, full service institutional investment banking firm, specializing in private placements and mergers and acquisitions for middle market and emerging growth companies.

About Odetics Inc.

Odetics is engaged in the development of communication and technology companies that may be spun-off to its shareholders. Odetics' companies develop software and hardware-based solutions for the intelligent transportation systems, telecommunications, video security and television broadcast markets. Odetics headquarters are located in Anaheim with additional operations in Europe and Asia.

Important Notice:

This news release contains statements that may be deemed to be forward looking. These forward-looking statements may include statements about revenue growth, profit margins, the effect of cost reduction measures, and other statements relating to the operating results of Odetics or its subsidiaries. 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, the significant uncertainty of market acceptance of new products by both distributors and end-user customers, unanticipated capital requirements, retention of key personnel, general economic conditions, the inability of the company to execute its strategy including the completion of both private and public equity financings of its subsidiaries, and other factors identified in the Odetics' Annual Report on Form 10-K and Quarterly Report on Form 10-Q.

Investors are strongly encouraged to review the risk factors set forth in the Odetics most recent SEC filings.