I.D. Systems (IDSY) Adopts Limited Duration Shareholder Rights Plan

July 2, 2009 4:30 PM EDT

I.D. Systems, Inc. (Nasdaq: IDSY) announced that its Board adopted a limited duration shareholder rights plan pursuant to which a dividend distribution of one preferred stock purchase right will be made for each outstanding share of the Company's common stock. The Board adopted the Rights Plan to assure that the Company's shareholders receive fair and equal treatment in the event of any proposed takeover of the Company, and to guard against partial tender offers, squeeze-outs, open market accumulation and other actions intended to gain control of the Company without paying all shareholders a fair price. The Rights Plan is not intended to and will not prevent an appropriate transaction at a full and fair price.

Jeffrey M. Jagid, Chief Executive Officer of the Company, commented, "Our Board of Directors is committed to enhancing value for and protecting the interests of our shareholders. Our Board of Directors has long held the view that the best way to enhance shareholder value is a strong stock price. As a result of the recent dislocations in the market, we feel it is prudent at this time to adopt a rights plan. Our Board of Directors will examine the rights plan every three years to determine whether it continues to be in the best interests of our shareholders."

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