I.D. Systems and Curtis Instruments Enter Into Global Product Development and Marketing Agreement

    HACKENSACK, N.J. & MT. KISCO, N.Y.--Dec. 19, 2001--Curtis Instruments, Inc., the world's largest manufacturer of instrumentation and controls for battery-powered vehicles, and I.D. Systems, Inc. , the leading provider of wireless vehicle monitoring and asset management systems, today announced the signing of an agreement to co-develop and market integrated command and control products for manufacturers of electric industrial vehicles and specialty equipment. The agreement was finalized pursuant to the memorandum of understanding announced by I.D. Systems and Curtis on August 9, 2001.
    Under the terms of the agreement, Curtis and I.D. Systems will work together to develop wireless vehicle management systems integrated into dashboard instrument panels. These "embedded" systems will be marketed to original equipment manufacturers (OEMs) of material handling vehicles, aircraft ground support equipment, durable medical devices, and other types of mobile electric-powered equipment. More than 1,000,000 electric vehicles are manufactured annually worldwide.
    Equipment end-users--including warehouses, manufacturing plants, airports, hospitals, and government facilities--are increasingly seeking wireless control and data collection solutions from the OEMs. The products co-developed by I.D. Systems and Curtis will be designed to provide the most cost-effective way for end-users to implement a comprehensive wireless vehicle command and control system.
    Curtis will assume primary responsibility for manufacturing the embedded systems and marketing them to its established base of OEM customers. I.D. Systems will take primary responsibility for providing supporting software, hardware, and services for the equipment end-users. Under the agreement, I.D. Systems will receive royalties on OEM system sales and be able to derive ongoing revenues from its supporting products and services.
    "Curtis and I.D. Systems make excellent partners, with highly complementary technologies and sales organizations," said Jeffrey Jagid, I.D. Systems Chief Executive Officer. "I.D. Systems is providing state-of-the-art wireless fleet management systems for leading end-users of industrial equipment--such as DaimlerChrysler, Deere & Company, Ford, General Motors, Hallmark Cards, the U.S. Navy, and the U.S. Postal Service--and Curtis is supplying vehicle control systems to an established worldwide customer base of leading equipment manufacturers.
    "This agreement should significantly expand penetration of I.D. Systems' technology in the worldwide industrial vehicle market, as well as provide new opportunities for I.D. Systems to establish predictable recurring revenue streams through software and support services," continued Mr. Jagid. "In addition, by earning royalties on the sale of the co-developed systems that will be manufactured by Curtis, I.D. Systems stands to improve both its revenues and gross profit margins without the capital investment or overhead associated with manufacturing operations."
    Stuart Marwell, President of Curtis Instruments, stated, "Increasingly, equipment end-users are demanding more control over, and more data from, their fleets of vehicles. Consequently, vehicle manufacturers are seeking advanced electronic control systems that incorporate a new generation of sensors, safety features, and wireless data communications. After carefully evaluating technologies for wireless vehicle management, it was clear to us that I.D. Systems has a uniquely effective and flexible system, with impressive hardware/software solutions. Integrating I.D. Systems' wireless fleet management technology with our vehicle control systems will give Curtis a powerful competitive advantage when selling to vehicle manufacturers."

    About I.D. Systems

    Based in Hackensack, New Jersey, I.D. Systems, Inc. is a leading provider of wireless solutions for corporate asset management. I.D. Systems' customers include British Airways, DaimlerChrysler, Deere & Co., Ford Motor Co., General Motors, Hallmark Cards, the Union Pacific Railroad, the U.S. Navy, and the U.S. Postal Service. Using local area networks, wide area networks, and the Internet, the company's systems enable management to control and track the location and status of their assets--from letters and containers to forklifts and railcars--in real time.
    I.D. Systems' Wireless Asset Net(TM) fleet management system provides comprehensive solutions to the cost and safety issues facing managers of industrial equipment fleets. The system improves safety by restricting vehicle access to trained operators (as required by OSHA), providing electronic safety inspection checklists, establishing accountability for abusive driving, and electronically recording accidents. The system improves productivity by detecting vehicle utilization, displaying real-time vehicle location, and providing text messaging for drivers. The system reduces maintenance expenses by automatically uploading vehicle data, reporting problems identified on checklists in real time, scheduling maintenance according to actual vehicle usage rather than on a calendar basis, managing battery rotation, and helping management determine the optimal economic time to replace equipment.
    For more information on I.D. Systems, Inc., visit www.id-systems.com.

    About Curtis Instruments

    Curtis Instruments, a privately held company, is the world's largest manufacturer of instruments and motor speed controllers for battery-powered vehicles and equipment. Curtis is preeminent in timers and counters that measure and record equipment use. Important products include: high-efficiency DC/DC converters, high-frequency on-board battery chargers, contactors, and integrated panels.
    For more information on Curtis Instruments, visit www.curtisinst.com.

    "Safe Harbor" statement under the Private Securities Litigation Reform Act of 1995: This press release contains forward looking statements that are subject to risk and uncertainties, including, but not limited to, the impact of competitive products, product demand and market acceptance risks, fluctuations in operating results and other risks detailed from time to time in I.D. Systems' filings with the Securities and Exchange Commission. These risks could cause I.D. Systems' actual results for the current fiscal year and beyond to differ materially from those expressed in any forward looking statements made by, or behalf of, I.D. Systems.