ImageWare Systems and SAGEM Morpho to Provide First Integrated Fingerprint and Mug Shot Capture System in Hawaii.

Business Editors/High-Tech Writers

SAN DIEGO--(BUSINESS WIRE)--March 8, 2004

ImageWare's Image Capture Technology Bundled with SAGEM's

Integrated Livescan System (ILS2) to Reduce Data Entry and Streamline

Booking and Investigation Processes

ImageWare Systems Inc. (AMEX: IW), a global provider of digital imaging, biometric and identification solutions, and SAGEM Morpho Inc., the world's largest biometrics company, today announced an agreement to provide the Kauai County Police Department, Hawaii, with its first integrated fingerprint-mug shot capture system.

Under the terms of the agreement, SAGEM will license and incorporate ImageWare's image capture technology into its ILS2 livescan station. This integrated solution will enable Kauai County officers to capture digital mug shot images and rolled or plain finger and palm prints from a single booking station. The Kauai County Police Department will also install ImageWare's investigative solutions for law enforcement, which will enable them to search and retrieve criminal data, and create photo lineups and mug books once suspects are booked. This implementation eliminates the need for multiple capture stations and redundant data entry while streamlining the booking and investigative processes and complying with NIST standards.

"We are very pleased to have the opportunity to assist in the advancement of Kauai's law enforcement identification technology," said Jean-Marc Suchier, CEO of SAGEM Morpho. "SAGEM's ILS2, coupled with ImageWare's image capture technology, provides a seamless multi-biometric capture system that will improve Kauai County's criminal booking process."

All images that are captured will be stored in a central repository of mug shots and data hosted by the Hawaii Criminal Justice Data Center on the Island of Hawaii. The center implemented ImageWare's complete digital booking, investigative and identification solution in 2001 and has expanded the solution throughout other islands in Hawaii, including the Hawaii Police Departments at Hilo and Kona. This unique functionality has enabled these departments to share critical investigative data and expedite the booking and investigative processes.

"Real-time data sharing is a vital component to the law enforcement community," said Joe Schuler, SVP of Sales and Marketing for ImageWare. "The ability to share mission-critical information facilitates the investigative process and supports criminal justice services more efficiently."

About SAGEM Morpho Inc.

SAGEM Morpho, the world's largest biometrics company, develops, manufactures and integrates multiple biometric technologies including fingerprint, iris and facial recognition products and services. SAGEM Morpho applies more than 20 years of global experience in biometric identification to deliver trusted and reliable biometric solutions to address many markets including law enforcement, federal government, Homeland Security, driver's licenses, civil identification, applicant background checks as well as consumer and commercial products. SAGEM Morpho's solutions are in use by government agencies including the FBI, NYPD and statewide systems for customers such as New York, Texas and Arizona. SAGEM Morpho is a wholly owned subsidiary of the European firm SAGEM. For more information, visit http://www.morpho.com.

About ImageWare Systems Inc.

ImageWare Systems Inc. (AMEX:IW) is the leading global developer of digital imaging, identification and biometric software solutions for the corporate, government, law enforcement, professional photography, transportation, education and healthcare markets, among others. ImageWare's secure credential and biometric product lines are used to produce ID cards, driver licenses, passports, national medical health cards, national IDs and more. The company's law enforcement and biometric product lines provide the public safety market with booking, investigative and identification solutions that can be accessed and shared via PC, Web and wireless platforms. ImageWare's professional digital imaging product line provides professional photographers with automated, in-studio and mobile solutions to facilitate the transition from film-based photography to digital imaging. Founded in 1987, ImageWare has headquarters in San Diego, with offices in Canada, Germany and Singapore. For more information visit www.iwsinc.com.

Safe Harbor Statement

This news release may contain forward-looking statements made pursuant to the "safe harbor" provisions of the Private Securities Litigation Reform Act of 1995. While these statements are meant to convey to the public the company's progress, business opportunities and growth prospects, readers are cautioned that such forward-looking statements represent management's opinion. While management believes such representation to be true and accurate based on the information available to the company, actual results may differ materially from those described. The company's operations and business prospects are always subject to risks and uncertainties. Important facts that may cause actual results to differ are set forth in the company's periodic filings with the U.S. Securities and Exchange Commission.