Exhibit 99.1

[I.D. SYSTEMS LOGO]

Expanding the range of wireless solutions

FOR IMMEDIATE RELEASE

             CONTACTS: For Financial Press             For Trade Press
                       Ned Mavrommatis                 Greg Smith
                       Chief Financial Officer         Vice President Marketing
                       ned@id-systems.com              gsmith@id-systems.com
                       General Phone: 201-996-9000;    Fax: 201-996-9144

             I.D. Systems Receives Order from Car Rental Company for
              Pilot Test of Wireless Rental Fleet Management System

Hackensack, NJ, February 27, 2006 -

I.D.  Systems,  Inc.  (NASDAQ:  IDSY)  today  announced  that it has  received a
purchase  order  from a large  U.S.-based  car  rental  company  to deploy  I.D.
Systems'  wireless fleet  management  system at a car rental  facility in a U.S.
airport.  This  deployment  will  serve as a pilot  program  for the car  rental
company to evaluate the benefits of the system in live  operations.  The company
is a new customer for I.D. Systems in the rental fleet management market.

I.D. Systems holds a United States patent for a fully automated wireless vehicle
rental  and  return  system  designed  to both  enhance  the  consumer's  rental
experience and benefit the rental company by providing  information  that can be
used to increase revenues, reduce costs and improve customer service. The system
is designed to automatically upload vehicle  identification  number, mileage and
fuel data as a vehicle  enters and exits the rental lot,  which can expedite the
rental  process for  travelers  and provide the rental  company with more timely
inventory   status,   more  accurate  billing  data  that  can  generate  higher
fuel-related  revenue,  and an opportunity to utilize customer service personnel
for more productive activities, such as inspecting vehicles for damage.

I.D. Systems,  Inc. is a leading provider of wireless solutions for managing and
securing high-value enterprise assets. These assets include industrial vehicles,
such as forklifts and airport ground  support  equipment,  and rental  vehicles.
I.D. Systems' patented Wireless Asset Net system, which utilizes radio frequency
identification,  or RFID,  technology,  addresses the needs of  organizations to
control track, monitor and analyze their assets. For more information about I.D.
Systems, visit www.id-systems.com.

"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, 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  registration
statement  on Form S-3 (File No.  333-131489).  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.