I.D. Systems Receives Order for Wireless Fleet Management System to be Deployed At Alcoa Facility in Iceland

HACKENSACK, N.J., Sept. 17, 2007 (PRIME NEWSWIRE) -- I.D. Systems, Inc. (Nasdaq:IDSY), a leading provider of wireless asset tracking and management solutions, today announced it has received a non-exclusive purchase order from Alcoa (NYSE:AA) to deploy I.D. Systems' Wireless Asset Net(r) industrial vehicle management system on a fleet of material handling equipment at Alcoa's new manufacturing complex in Iceland, one of the most modern, environmentally-friendly aluminum production facilities in the world. The purchase order includes system hardware, software, implementation services, and ongoing maintenance and technical support services for a term of 60 months, including the initial warranty period. Alcoa will have the option to secure material handling equipment from a variety of partners, including those in Iceland.

The Wireless Asset Net improves productivity in manufacturing and distribution environments by establishing accountability for use of equipment, ensuring equipment is in the proper place at the right time, streamlining work flow through automated messaging, and providing management with unique metrics on -- and controls over -- equipment utilization. The system also improves workplace safety and security by restricting vehicle access to trained, authorized operators and providing electronic vehicle inspection checklists. In addition, the system reduces maintenance expenses 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.

"We are pleased to expand our relationship with Alcoa, which has implemented I.D. Systems' technology previously at five other facilities," said Peter Fausel, I.D. Systems' executive vice president of sales, marketing and customer service. "The Wireless Asset Net system fits well with Alcoa's focus on maximizing worker safety, while, at the same time, providing numerous tools to help reduce the cost of material handling operations."

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, 2005. 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
            ned@id-systems.com
          For Trade Press
          Greg Smith, Vice President Marketing
            gsmith@id-systems.com
          201-996-9000
          Fax: 201-996-9144

Released September 17, 2007