Mexico Selects ImageWare Systems to Provide Biometrically Enabled Controlled Access Solution for Government Facilities; ImageWare's Growth in Latin America Continues to Build Momentum.

SAN DIEGO -- ImageWare(R) Systems, Inc. (AMEX:IW), a world leading developer and provider of identity management solutions, in partnership with Seglink S de RL de CV, has been selected by a Mexican government entity to deliver a comprehensive multi-biometric identity management system for visitor and access control at a government installation. The system is expected to be implemented at additional government facilities as well.

The initial order is valued at approximately $200,000 and is expected to be completed in the 4th quarter. Options for additional implementations, which are expected to be exercised by the end of this year or during the first quarter of 2006, will result in a total contract value of approximately $600,000.

Under the terms of the agreement, ImageWare Systems will develop a customized multi-biometric identity management system by leveraging a combination of the company's IWS(TM) Biometric Engine and investigative solutions, enabling the enrollment of employees, vendors and visitors, and control access to secure areas.

ImageWare's solution provides interface to automated fingerprint systems (AFIS) for checking individuals requesting access or visitation to the facility. Once the background check is completed, applicants will be issued an identification badge linked to their biometric enrollment allowing facility personnel to authenticate and track visitor movement upon entry and departure. The system will initially utilize fingerprint biometrics with the ability to seamlessly integrate face, iris and signature recognition capabilities in the future.

"We selected ImageWare because of their agnostic, open architecture, multi-biometric, investigative and identification capabilities which will enable us to integrate a comprehensive identity management and secure credential infrastructure. This will enhance and streamline the visitor registration and access control operations to these facilities," said Jose M. Castanos of Seglink. "Additionally, ImageWare's open architecture and the scalability of their solution is a major component of the customer's initiatives to interface between various agencies. We look forward to working closely with ImageWare to provide our customers with similar systems in various agencies."

"We are very pleased to be working with Seglink to provide the Mexican government with enhanced access control to their secure facilities," said Jim Miller, ImageWare's chairman and CEO. "This project demonstrates not only our commitment toward open-architecture biometric identification systems, but the commitment to and progress we are making in the Latin American region. We will continue to aggressively pursue international government related programs as well as private sector programs which will further expand our presence in the international marketplace."

About ImageWare Systems, Inc.

ImageWare Systems, Inc. (AMEX:IW) is a world leading developer and provider of identity management solutions, providing biometric, secure credential, law enforcement and digital imaging technologies. Scalable for worldwide deployment, the Company's biometric product line includes a multi-biometric engine that is hardware and algorithm independent, enabling the enrollment and management of unlimited population sizes. ImageWare's identification products are used to manage and issue secure credentials including national IDs, passports, driver licenses, smart cards and access control credentials. ImageWare's digital booking products provide law enforcement with integrated mug shot, fingerprint Livescan and investigative capabilities. The Company also provides comprehensive digital workflow solutions for the professional photography industry. ImageWare is headquartered in San Diego, with offices in Canada and Germany. For more information visit www.iwsinc.com.

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