Defense Logistics Agency Selects I.D. Systems to Manage Industrial Vehicles with Secure Wi-Fi Technology

Woodcliff Lake, NJ, September 18, 2013—I.D. Systems, Inc. (Nasdaq: IDSY), a leading provider of wireless solutions for securing, tracking and managing high-value enterprise assets, has received a contract from the National Center for Manufacturing Sciences (NCMS) to deploy I.D. Systems' PowerFleet™ Vehicle Management System (VMS) on a fleet of material handling equipment at the U.S. Defense Logistics Agency (DLA) facility at Robins Air Force Base (AFB), Georgia. The system is being deployed for an initial pilot phase, with the potential to expand more broadly across the DLA and U.S. Department of Defense (DoD).

NCMS is a non-profit organization, funded in part by the DoD, that forms partnerships between the DoD and private industry under the Commercial Technologies for Maintenance Activities (CTMA) program. NCMS facilitates development, deployment and validation of innovative commercial technologies that provide operational benefits and cost savings for DoD maintenance activities.

Robins AFB is the home of Warner Robins Air Logistics Center, the 78th Air Base Wing, and more than 60 other units that make up a vital part of the Air Force warfighting team. It is the largest industrial complex in Georgia, employing a workforce of over 25,000 civilians, contractors and military members.

The PowerFleet system being deployed at Robins AFB will incorporate a "FIPS 140-2" compliant Wi-Fi transceiver, designed to enable industrial vehicles to communicate data securely, with military-approved encryption, through the DLA's existing wireless network. This secure wireless communication capability is essential for many vehicle management applications throughout the DoD.

"We are proud to continue our strong tradition of identifying and helping implement best-practice commercial technologies for DoD applications," said Tony Haynes, Acting CTMA Director. "We look forward to seeing the proven commercial capabilities of the PowerFleet system translate into operational benefits for DoD maintenance activities."

"Maintenance is a vital component of mission readiness and therefore a major strategic focus for the DoD," said Greg Kilchenstein of the Office of the Secretary of Defense for Acquisition, Technology and Logistics. "The DoD expends a significant percentage of the national defense budget on maintenance operations, so we are excited to introduce the DLA to I.D. Systems' wireless industrial vehicle management technology, which has proven its value in the commercial sector by reducing maintenance and other costs in material handling operations, improved workplace safety, and increased supply chain productivity."

About Vehicle Management Systems

Vehicle Management Systems (VMS) help improve workplace safety and security by restricting vehicle access to trained, authorized operators, providing electronic vehicle inspection checklists, and sensing vehicle impacts. A wireless VMS also helps reduce fleet maintenance costs by automatically uploading vehicle data, reporting vehicle problems electronically, scheduling maintenance according to actual vehicle usage rather than by calendar or manual data entry, and helping determine the optimal economic time to replace equipment. In addition, a wireless VMS helps improve supply chain productivity by establishing accountability for the use of equipment, ensuring equipment is in the proper place at the right time, streamlining material handling work flow, and providing unique metrics on equipment utilization.

About I.D. Systems

Headquartered in Woodcliff Lake, New Jersey, with subsidiaries in Texas, Germany, and the United Kingdom, I.D. Systems is a leading global provider of wireless solutions for securing, controlling, tracking, and managing high-value enterprise assets, including rental cars, industrial vehicles, trailers, containers, and cargo. The Company's patented technologies address the needs of organizations to monitor and analyze their assets to increase efficiency and productivity, reduce costs, and improve profitability. For more information, please visit www.id-systems.com.

Cautionary Note Regarding Forward-Looking Statements

This press release contains forward looking statements within the meaning of federal securities laws. Forward-looking statements include statements with respect to I.D. Systems' beliefs, plans, goals, objectives, expectations, anticipations, assumptions, estimates, intentions, and future performance, and involve known and unknown risks, uncertainties and other factors, which may be beyond I.D. Systems' control, and which may cause its actual results, performance or achievements to be materially different from future results, performance or achievements expressed or implied by such forward-looking statements. All statements other than statements of historical fact are statements that could be forward-looking statements. For example, forward-looking statements include: statements regarding prospects for additional customers; market forecasts; projections of earnings, revenues, synergies, accretion or other financial information; and plans, strategies and objectives of management for future operations, including integration plans in connection with acquisitions. The risks and uncertainties referred to above include, but are not limited to, future economic and business conditions, the loss of key customers or reduction in the purchase of products by any such customers, the failure of the market for I.D. Systems' products to continue to develop, the possibility that I.D. Systems may not be able to integrate successfully the business, operations and employees of acquired businesses, the inability to protect I.D. Systems' intellectual property, the inability to manage growth, the effects of competition from a variety of local, regional, national and other providers of wireless solutions, and other risks detailed from time to time in I.D. Systems' filings with the Securities and Exchange Commission, including its annual report on Form 10-K for the year ended December 31, 2012. These risks could cause 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, and expressly disclaims any obligation to do so, whether as a result of new information, future events or otherwise.

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