ImageWare Systems, Inc. Awarded Additional Arizona Contracts.

Business Editors/Hi-Tech Writers

SAN DIEGO--(BUSINESS WIRE)--Aug. 8, 2000

ImageWare Systems, Inc. (AMEX: IW, IW.WS) today announced it was recently awarded contracts by two agencies in Arizona which will enable those agencies to tie into the statewide mug shot database managed by the Arizona Department of Public Safety (AZDPS).

The two orders were received in the second quarter of this year from Maricopa County Sheriff's Office and from the City of Mesa totaling approximately $166,000 and $191,000 respectively.

In January 1998 ImageWare was awarded a contract to install its Crime Capture System (CCS) digital mug shot system as a statewide system tied to a central database managed by the AZDPS. The central database would then be available to all local agencies in the state that had compatible systems and wanted to tie into the AZDPS network.

Since the installation of the statewide system in 1998, other Arizona agencies to purchase CCS systems and gain access to the AZDPS central database capability include: Tucson Police Department, Scottsdale Police Department, Phoenix Police Department, Gilbert Police Department, Pima County Attorney's Office, Chandler Police Department, Tempe Police Department, Arizona Department of Corrections and the Phoenix office of the FBI.

ImageWare recently announced that it had been selected to supply the New Jersey State Police with a statewide digital mug shot system. As it has experienced with Arizona, ImageWare expects to add many of the over 450 law enforcement agencies in New Jersey as customers once the statewide system has been installed.

ImageWare Systems, Inc. develops, sells and supports a suite of modular software products known as C.R.I.M.E.S. (R) used by law enforcement and public safety agencies to manage criminal history records. ImageWare's software systems and associated hardware allow customers to quickly capture, archive, search, retrieve and share digital photographs and criminal history records.

ImageWare products are currently being used by government agencies such as the New York City Police Department, Arizona Department of Public Safety, Los Angeles Sheriffs Office, Montreal Urban Police Department and law enforcement agencies in Las Vegas, Portland, Seattle, Indianapolis and Orlando.

Statements in this press release that are not strictly historical are "forward-looking" statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934.

These statements involve a high degree of risk and uncertainty, are predictions only and actual events or results may differ materially from those projected in such forward-looking statements.

Factors that could cause or contribute to differences include the uncertainty regarding viability and market acceptance of the Company's products and services, the need for regulatory approval of the Company's products and the Company's dependence on reimbursement by third parties.

These factors and others are more fully described in the section entitled "Risk Factors" in the Company's Final Prospectus, dated March 30, 2000.

L.G. Zangani, LLC provides financial public relations service to the Company, As such L.G. Zangani, LLC and/or its officers, agents and employees, receives remuneration for public relations and or other services in the form of moneys, capital stock in the Company, warrants or options to purchase capital in the Company.