Transportation Security Administration Awards Funding Increase to I.D. Systems for Phase II Expansion of Wireless Vehicle Security Program

HACKENSACK, N.J., March 24 -- I.D. Systems, Inc. announced today that the Transportation Security Administration (TSA) has funded a Phase II expansion of the company's wireless vehicle security program at JAXPORT, the Jacksonville, Florida, seaport. Under the expansion, which supplements a contract awarded in July 2004, I.D. Systems will deploy the homeland security version of its Wireless Asset Net(TM) fleet management system on several hundred additional vehicles at the seaport. The funding increase is valued at approximately $870,000.

The homeland security version of I.D. Systems' Wireless Asset Net represents a critical defense against security breaches involving airport and seaport ground vehicles. The system is designed to provide wireless access control, location tracking, geo-fencing, remote vehicle disabling, fleet utilization analysis tools, maintenance management tools, safety enforcement tools, and many other functions beneficial for owners and operators of ground equipment. The JAXPORT project also provides a unique opportunity to demonstrate a complex radio frequency infrastructure compatible with the demanding technical requirements of large, multi-stakeholder environments such as airports and seaports.

"We are gratified that the TSA has increased funding to expand the scope of our vehicle monitoring system for homeland security," said Rick Muntz, I.D. Systems' executive vice president of sales, marketing and customer satisfaction. "We view this as another positive reflection of our technology's advanced capabilities and performance. We look forward to continue working closely with the TSA in the future to advance I.D. Systems' position as an important provider of wireless solutions for homeland security."

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 3M Company, American Axle, Archer Daniels Midland, DaimlerChrysler, Deere & Co., Ford Motor Company, General Dynamics, Hallmark Cards, Northrop Grumman, Target Corporation, Walgreen Co., the U.S. Navy, the U.S. Postal Service, and the U.S. Transportation Security Administration, among others. 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 forklifts and cranes to automobiles and trucks -- in real time. For more information on I.D. Systems, Inc., visit http://www.id-systems.com/ or email info@id-systems.com.

Trademarks

I.D. Systems, Inc., Wireless Asset Net, Tag Aggregator, Machine Asset Communicator, Charger Monitoring Point, and Battery ChaMP are all registered or pending trademarks of I.D. Systems, Inc.

"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, 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 to differ materially from those expressed in any forward looking statements made by, or on behalf of, I.D. Systems. I.D. Systems assumes no obligation to update the information contained in this press release.