I.D. Systems Wins U.S. Department of Defense Project for Wireless Industrial Vehicle Management Technology

HACKENSACK, N.J., Nov. 5, 2007 (PRIME NEWSWIRE) -- I.D. Systems, Inc. (Nasdaq:IDSY), a leading provider of wireless asset tracking and management solutions, today announced that it has entered into an agreement with the National Center for Manufacturing Sciences (NCMS) to deploy I.D. Systems' Wireless Asset Net(r) industrial vehicle management system on a fleet of material handling equipment at the Sierra Army Depot. The system will be evaluated by multiple U.S. military installations for potential use on a range of military base vehicles.

NCMS is a non-profit organization, funded in part by the U.S. Department of Defense (DoD), that forms partnerships between the DoD and private industry under the Commercial Technologies for Maintenance Activities (CTMA) program. NCMS facilitates development, deployment and validation of innovative commercial technologies that can provide operational benefits and cost savings for DoD maintenance activities.

Sierra Army Depot is an installation of the U.S. Army's Tank-automotive and Armaments Command (TACOM) under the U.S. Army Materiel Command. The Depot's mission is to provide worldwide logistics support for the U.S. Army, including receipt, storage, repair, shipping, maintenance, and fabrication of assets. The Depot is a Center of Industrial Technical Excellence focused on "lean manufacturing" process improvements.

Also participating in the project as DoD observers are the Anniston Army Depot, Red River Army Depot, and Portsmouth Naval Shipyard. In addition, Ford Motor Company is participating as an industry observer and advisor, based on its successful experiences with I.D. Systems' industrial vehicle management technology.

"Maintenance is a significant expense for the DoD, currently absorbing 16% of our budget, or more than $80 billion annually -- and both the dollars and percentage of budget are increasing," said Greg Kilchenstein of the Office of the Secretary of Defense for Acquisition, Technology and Logistics. "Maintenance is also a critical factor in our mission to sustain optimal materiel readiness. We are therefore very excited to evaluate a wireless technology with proven abilities in the commercial sector to reduce maintenance costs, manage operating condition, and increase productivity of material handling vehicles. The DoD maintains a large fleet of such vehicles across its installations, and improvements in fleet up-time, cost control and utilization can make a significant impact on materiel readiness."

I.D. Systems' Wireless Asset Net reduces industrial fleet maintenance costs and improves fleet availability by automatically uploading vehicle data, reporting vehicle problems in real time, scheduling maintenance according to actual vehicle usage rather than on a calendar basis, and helping determine the optimal economic time to replace equipment. The system also improves productivity by establishing accountability for the use of vehicles, ensuring equipment is in the proper place at the right time, streamlining work flow through automated messaging, and providing unique metrics on -- and controls over -- equipment utilization. In addition, the system improves safety and security by restricting equipment access to authorized operators and providing electronic vehicle inspection checklists.

As part of the Sierra Army Depot project, I.D. Systems will optimize Wireless Asset Net operation by integrating an automated data interface between the system and the Depot's existing maintenance database.

"The National Center for Manufacturing Sciences is proud to continue its strong tradition of identifying, funding and helping implement best-practice commercial technologies for DoD applications," said Chuck Ryan, NCMS Vice President of Technology. "We look forward to seeing the proven commercial capabilities of the Wireless Asset Net system translate into significant operational benefits for DoD depot activities."

About I.D. Systems

I.D. Systems, Inc. is a leading provider of wireless solutions for securing, tracking and managing high-value enterprise assets. These assets include industrial vehicles, such as forklifts and airport ground support equipment, and the people who operate them. The company's patented Wireless Asset Net system, which utilizes radio frequency identification, or RFID, technology, addresses the needs of organizations to control track, monitor and analyze their assets. For more information about I.D. Systems, visit www.id-systems.com.

"Safe Harbor" statement under the Private Securities Litigation Reform Act of 1995:

This press release contains forward looking statements that are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995 and that are subject to risk and uncertainties, including, but not limited to, future economic and business conditions, the loss of any of the Company's key customers or reduction in the purchase of its products by any such customers, the failure of the market for the Company's products to continue to develop, the inability to protect the Company's intellectual property, the inability to manage the Company's growth, the effects of competition from a wide variety of local, regional, national and other providers of wireless solutions and other risks detailed from time to time in the Company's filings with the Securities and Exchange Commission, including the Company's annual report on Form 10-K for the year ended December 31, 2006. These risks could cause actual results to differ materially from those expressed in any forward looking statements made by, or on behalf of, the Company. The Company assumes no obligation to update the information contained in this press release.

CONTACT: I.D. Systems, Inc.
         For Financial Press
         Ned Mavrommatis, Chief Financial Officer
           201-996-9000
           ned@id-systems.com
         For Trade Press
         Greg Smith, Vice President Marketing
           201-996-9144
           gsmith@id-systems.com

Released November 5, 2007