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Kellogg Expands Deployment of I.D. Systems Wireless

Friday, November 21, 2008

HACKENSACK, NJ — I.D. Systems, Inc. (NASDAQ: IDSY), a leading provider of wireless asset tracking and management solutions, today announced that it has received a follow-on purchase order from Kellogg Company to implement I.D. Systems’ Wireless Asset Net® industrial vehicle management system for a fleet of material handling equipment at a major Kellogg manufacturing and distribution facility. This facility—Kellogg’s second to deploy I.D. Systems’ wireless technology—is in Battle Creek, Michigan, also the location of Kellogg’s world headquarters.

“Kellogg wants to adopt best practices aimed at improving safety, increasing productivity and reducing costs in their workplace, and I.D. Systems’ wireless technology is helping Kellogg meet its goals for optimizing industrial fleet management,” said Peter Fausel, I.D. Systems’ executive vice president of sales, marketing and customer service. “We are very gratified to expand our relationship with a world-class consumer products company like Kellogg and we look forward to reproducing our best-practice technology for Kellogg at more facilities across their enterprise.”

Kellogg is the world’s leading producer of cereal and a leading producer of convenience foods, with 2007 sales of nearly $12 billion. Kellogg products, including leading brands such as Kellogg's®, Keebler®, Pop-Tarts®, Eggo®, Cheez-It®, Morningstar Farms®, and Famous Amos®, are manufactured in 19 countries and distributed in more than 180 countries around the world.

The Wireless Asset Net system improves productivity in manufacturing and distribution operations by establishing accountability for use of equipment, ensuring equipment is in the proper place at the right time, streamlining work flow through automated messaging, and providing management with unique metrics on—and controls over—equipment utilization. The system also improves workplace safety and security by restricting vehicle access to trained, authorized operators and providing electronic vehicle inspection checklists. In addition, the system reduces maintenance expenses by automatically uploading vehicle data, reporting vehicle problems in real time, scheduling maintenance according to actual vehicle usage rather than on a calendar basis, and helping determine the optimal economic time to replace equipment.

About I.D. Systems:
Based in Hackensack, New Jersey, with European business offices in Düsseldorf, Germany, I.D. Systems, Inc. is a leading provider of wireless solutions for managing and securing high-value enterprise assets, including industrial vehicles, such as forklifts and airport ground support equipment, and rental vehicles. The company’s patented technology, which utilizes radio frequency identification, or RFID, technology, addresses the needs of organizations to control, track, monitor and analyze their assets. For more information, visit www.id-systems.com.

“Safe Harbor” statement:
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, such as the Company’s outlook for 2008 financial results and prospects for additional customers and revenues. Forward-looking statements include statements with respect to our beliefs, plans, objectives, goals, expectations, anticipations, assumptions, estimates, intentions, and future performance, and involve known and unknown risks, uncertainties and other factors, which may be beyond our control, and which may cause our 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. These forward-looking statements 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, 2007. 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.

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