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I.D. Systems Receives $875,000 Increase from U.S. Postal Service

14 September 1999

I.D. Systems Receives $875,000 Increase from U.S. Postal Service

      Addition Increases Agreement from $6.7 Million to $7.6 Million for
                    I.D. Systems Mail Tracking Technology

    NEW YORK, Sept. 14 -- I.D. Systems, Inc. , a
leader in wireless monitoring systems for industry, today announced that it
received a $875,000 increase to an existing $6.7 million agreement from the
U.S. Postal Service.
    Jeffrey Jagid, I.D. Systems chief operating officer, said, "We are
extremely excited about our continued association with the U.S. Postal
Service.  This expansion of a previous agreement is a significant indication
of the Postal Service's commitment to monitor its mail flow operations.  We
look forward to expanding our relationship as the U.S. Postal Service
continues to experience enhanced operating efficiencies throughout its
system."
    U.S. Postal Service utilizes I.D. Systems' wireless technology to
accurately monitor and track mail flow throughout its facilities.  The
technology tracks the flow of mail, identifying bottlenecks that result in
delays in delivery. Using proprietary technology that does not require line of
sight tracking, I.D. Systems technology communicates with plant management by
identifying the exact location of a delay and informing management of the need
for immediate action.
    Based in New York, NY, I.D. Systems designs, develops and produces a
wireless monitoring and tracking system that uses radio frequency technology.
Its system can monitor, track, analyze and control the movement of virtually
any object, including vehicles, equipment and packages.  Principal customers
to date include the United States Postal Service, Federal Express Corporation,
Avis Rent A Car System, Inc., Ford Motor Corporation, Hallmark Cards, Inc.,
QVC Inc. and World Color Press, Inc.
    For more information on I.D. Systems, Inc., visit the company's World Wide
Web site at http://www.id-systems.com.
    Safe Harbor statement under the Private Securities Litigation Reform Act
of 1995: Except for historical information, the matters discussed in this news
release that may be considered forward-looking statements may be subject to
certain risks and uncertainties that could cause the actual results to differ
materially from those projected, including uncertainties and other risks
detailed from time to time in the Company's Securities and Exchange Commission
filings.