I.D. Systems and Curtis Instruments Enter Into Global Product Development and Marketing Agreement.Business Editors HACKENSACK, N.J. & MT. KISCO, N.Y.--(BUSINESS WIRE)--Dec. 19, 2001 Curtis Instruments, Inc., the world's largest manufacturer of instrumentation and controls for battery-powered vehicles, and I.D. Systems, Inc. (NASDAQ NASDAQ in full National Association of Securities Dealers Automated Quotations U.S. market for over-the-counter securities. Established in 1971 by the National Association of Securities Dealers (NASD), NASDAQ is an automated quotation system that reports on : IDSY), the leading provider of wireless vehicle monitoring and asset management systems, today announced the signing of an agreement to co-develop and market integrated command and control products for manufacturers of electric industrial vehicles and specialty equipment. The agreement was finalized pursuant to the memorandum of understanding A Memorandum of Understanding (MoU) is a legal document describing a bilateral or multilateral agreement between parties. It expresses a convergence of will between the parties, indicating an intended common line of action and may not imply a legal commitment. announced by I.D. Systems and Curtis on August 9, 2001. Under the terms of the agreement, Curtis and I.D. Systems will work together to develop wireless vehicle management systems integrated into dashboard instrument panels. These "embedded" systems will be marketed to original equipment manufacturers (OEMs) of material handling vehicles, aircraft ground support equipment, durable medical devices, and other types of mobile electric-powered equipment. More than 1,000,000 electric vehicles are manufactured annually worldwide. Equipment end-users--including warehouses, manufacturing plants, airports, hospitals, and government facilities--are increasingly seeking wireless control and data collection solutions from the OEMs. The products co-developed by I.D. Systems and Curtis will be designed to provide the most cost-effective way for end-users to implement a comprehensive wireless vehicle command and control system. Curtis will assume primary responsibility for manufacturing the embedded systems Embedded systems Computer systems that cannot be programmed by the user because they are preprogrammed for a specific task and are buried within the equipment they serve. and marketing them to its established base of OEM (Original Equipment Manufacturer) The rebranding of equipment and selling it. The term initially referred to the company that made the products (the "original" manufacturer), but eventually became widely used to refer to the organization that buys the products and customers. I.D. Systems will take primary responsibility for providing supporting software, hardware, and services for the equipment end-users. Under the agreement, I.D. Systems will receive royalties on OEM system sales System sales is a business term used in the franchising industry. Franchisors provide supplies, marketing and administration services to franchisees in return for a part of the franchisees' revenues. Some franchisors also operate some outlets directly. and be able to derive ongoing revenues from its supporting products and services. "Curtis and I.D. Systems make excellent partners, with highly complementary technologies and sales organizations," said Jeffrey Jagid, I.D. Systems Chief Executive Officer. "I.D. Systems is providing state-of-the-art wireless fleet management systems for leading end-users of industrial equipment--such as DaimlerChrysler, Deere & Company, Ford, General Motors, Hallmark Cards Hallmark Cards, a privately owned American company based in Kansas City, Missouri, is the largest manufacturer of greeting cards in the United States. Approximately 50% of greeting cards sent in the United States every year are manufactured by Hallmark. , the U.S. Navy, and the U.S. Postal Service--and Curtis is supplying vehicle control systems to an established worldwide customer base of leading equipment manufacturers. "This agreement should significantly expand penetration of I.D. Systems' technology in the worldwide industrial vehicle market, as well as provide new opportunities for I.D. Systems to establish predictable recurring revenue streams through software and support services support services Psychology Non-health care-related ancillary services–eg, transportation, financial aid, support groups, homemaker services, respite services, and other services ," continued Mr. Jagid. "In addition, by earning royalties on the sale of the co-developed systems that will be manufactured by Curtis, I.D. Systems stands to improve both its revenues and gross profit margins Gross profit margin Gross profit divided by sales, which is equal to each sales dollar left over after paying for the cost of goods sold. gross profit margin A measure calculated by dividing gross profit by net sales. without the capital investment or overhead associated with manufacturing operations Manufacturing operations concern the operation of a facility, as opposed to maintenance, supply and distribution, health, and safety, emergency response, human resources, security, information technology and other infrastructural support organizations. ." Stuart Marwell, President of Curtis Instruments, stated, "Increasingly, equipment end-users are demanding more control over, and more data from, their fleets of vehicles. Consequently, vehicle manufacturers are seeking advanced electronic control systems that incorporate a new generation of sensors, safety features, and wireless data communications data communications, application of telecommunications technology to the problem of transmitting data, especially to, from, or between computers. In popular usage, it is said that data communications make it possible for one computer to "talk" with another. . After carefully evaluating technologies for wireless vehicle management, it was clear to us that I.D. Systems has a uniquely effective and flexible system, with impressive hardware/software solutions. Integrating I.D. Systems' wireless fleet management technology with our vehicle control systems will give Curtis a powerful competitive advantage when selling to vehicle manufacturers." About I.D. Systems Based in Hackensack, New Jersey, I.D. Systems, Inc. is a leading provider of wireless solutions for corporate asset management. I.D. Systems' customers include British Airways, DaimlerChrysler, Deere & Co., Ford Motor Co., General Motors, Hallmark Cards, the Union Pacific Railroad Union Pacific Railroad, transportation company chartered (1862) by Congress to build part of the nation's first transcontinental railroad line. Under terms of the Pacific Railroads Act, the Union Pacific was authorized to build a line westward from Omaha, Nebr. , the U.S. Navy, and the U.S. Postal Service The U.S. Postal Service (USPS) processes and delivers mail to individuals and businesses within the United States. The service seeks to improve its performance through the development of efficient mail-handling systems and operates its own planning and engineering programs. . Using local area networks, wide area networks, and the Internet, the company's systems enable management to control and track the location and status of their assets--from letters and containers to forklifts and railcars--in real time. I.D. Systems' Wireless Asset Net(TM) fleet management system provides comprehensive solutions to the cost and safety issues facing managers of industrial equipment fleets. The system improves safety by restricting vehicle access to trained operators (as required by OSHA OSHA n. Occupational Safety and Health Administration, a branch of the US Department of Labor responsible for establishing and enforcing safety and health standards in the workplace. ), providing electronic safety inspection checklists, establishing accountability for abusive driving, and electronically recording accidents. The system improves productivity by detecting vehicle utilization, displaying real-time vehicle location, and providing text messaging for drivers. The system reduces maintenance expenses by automatically uploading vehicle data, reporting problems identified on checklists in real time, scheduling maintenance according to actual vehicle usage rather than on a calendar basis, managing battery rotation, and helping management determine the optimal economic time to replace equipment. For more information on I.D. Systems, Inc., visit www.id-systems.com. About Curtis Instruments Curtis Instruments, a privately held company privately held company A firm whose shares are held within a relatively small circle of owners and are not traded publicly. , is the world's largest manufacturer of instruments and motor speed controllers for battery-powered vehicles and equipment. Curtis is preeminent in timers and counters that measure and record equipment use. Important products include: high-efficiency DC/DC converters, high-frequency on-board battery chargers, contactors, and integrated panels. For more information on Curtis Instruments, visit www.curtisinst.com. "Safe Harbor Safe Harbor 1. A legal provision to reduce or eliminate liability as long as good faith is demonstrated. 2. A form of shark repellent implemented by a target company acquiring a business that is so poorly regulated that the target itself is less attractive. " statement under the Private Securities Litigation Reform Act The Private Securities Litigation Reform Act of 1995 (PSLRA) implemented several significant substantive changes affecting certain cases brought under the federal securities laws, including changes related to pleading, discovery, liability, class representation and awards fees and of 1995: This press release contains forward looking statements that are subject to risk and uncertainties, including, but not limited to, the impact of competitive products, product demand and market acceptance risks, fluctuations in operating results and other risks detailed from time to time in I.D. Systems' filings with the Securities and Exchange Commission. These risks could cause I.D. Systems' actual results for the current fiscal year and beyond to differ materially from those expressed in any forward looking statements made by, or behalf of, I.D. Systems. |
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