I.D. Systems Awarded Contract by U.S. Postal Service to Enhance Productivity Metrics for Industrial Vehicle Management

HACKENSACK, N.J., May 15, 2007 (PRIME NEWSWIRE) -- I.D. Systems, Inc. (Nasdaq:IDSY) today announced that it has been awarded a software development and implementation contract by the United States Postal Service (USPS) to introduce a new productivity data point to I.D. Systems' Wireless Asset Net(r) industrial vehicle management system, which has been installed, or is in the process of being deployed, at 72 USPS facilities. The contract is valued at approximately $340,000.

The new data point is intended to simplify tracking the time a powered industrial vehicle spends transporting a load, in contrast to the time it spends moving while empty. This information is expected to improve the USPS' measurement of utilization of its industrial vehicles and the productivity of its vehicle operators. In addition, the software enhancement is designed to reduce vehicle-mounted hardware and related installation labor costs. The software is also designed to support all vehicle types, ages and manufacturers, so it can be implemented uniformly across virtually all USPS equipment in every facility.

"We continue to work closely with the Postal Service -- one of our best customers -- to create innovative new ways to improve the value and practical application of our Wireless Asset Net(r) system for managing fleets of industrial vehicles," said Peter Fausel, I.D. Systems' executive vice president of sales, marketing and customer support. "This initiative is another example of how I.D. Systems continues to push the envelope of wireless asset management technology and play an active role helping our customers, like the Postal Service, achieve meaningful economic benefit from I.D. Systems' solutions."

About the Wireless Asset Net(r)

The Wireless Asset Net(r) consists of intelligent wireless devices (Vehicle Asset Communicators(r)) installed on powered industrial vehicles (such as fork trucks and pallet movers), a patented communication system, and client-server software for access control, utilization analysis, real-time location tracking, and many other functions. The system is designed to improve industrial workplace safety and security by restricting vehicle access to trained, authorized operators and by providing electronic safety inspection checklists. The system is designed to reduce maintenance expenses by automatically uploading vehicle data, reporting vehicle problems in real time, giving management the option of scheduling maintenance according to actual vehicle usage rather than on a calendar basis, and helping plant management determine the optimal economic time to replace equipment. The system is also designed to help improve productivity by ensuring equipment is in the proper place at the right time and by providing management with unique reports on vehicle utilization.

About I.D. Systems

Based in Hackensack, NJ, I.D. Systems, Inc. is a leading provider of wireless solutions for managing and securing high-value enterprise assets. These assets include industrial vehicles, such as forklifts and airport ground support equipment, and rental vehicles. 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, please visit www.id-systems.com.

Trademarks

I.D. Systems, Inc., the Wireless Asset Net and Vehicle Asset Communicators are all registered trademarks of I.D. Systems.

"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
          +1 201-996-9000
          Fax: +1 201-996-9144

Released May 15, 2007