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Patients, Physicians, and Pharmacists Fighting Diversion Organization Selects ImageWare Systems To Help Combat Prescription Narcotic Drug Abuse

Pilot Program to Leverage ImageWare Biometric Identity Management Solution

SAN DIEGO, CA, April 2, 2007 - ImageWare® Systems, Inc. (AMEX: IW), a leading developer of identity management solutions, today announced the company was selected by the non-profit consortium of Patients, Physicians, and Pharmacists Fighting Diversion (PPPFD™) to implement a comprehensive biometric identity management solution as part of its Forensic Medicine Technology™ program. The purpose of this system is to fight prescription narcotic drug abuse and diversion while ensuring law abiding patients continue to have access to the narcotic medicines they need.

Under the terms of the agreement, PPPFD will deploy ImageWare’s biometric identity management solution along with its proven forensic screening process and techniques in an effort to stop drug abusers also known as “doctor shoppers,” from going to more than one doctor to obtain narcotic pain medication such as OxyContin, methadone or Vicodin. This biometric identification system, which includes the company’s IWS™ Biometric Engine®, IWS™ EPI™ Builder secure credentialing infrastructure as well as a customized PPPFD Management Application with robust user and administrator features, will enable PPPFD to biometrically enroll, verify, and issue PPPFD ID cards to help identify and verify the identity of legitimate participating patients.

By leveraging ImageWare’s technology, participant identity is indisputably verified using biometrics at the time of enrollment and is available for verification to participating healthcare providers (physicians and pharmacies) at the time of dispensing, eliminating fraud and avoiding significant costs. The participant information remains protected under the Health Insurance Portability and Accountability Act (HIPAA). The system also provides the foundation for future deployments that may use biometric identification at the point-of-sale to activate additional forms of fraud prevention and cost avoidance.

“PPPFD has been looking for preemptive ways to combat drug abuse, diversion and fraud,” said Mark Radcliffe, president of PPPFD. “We are confident that ImageWare’s biometric identity management solution, coupled with our forensic screening technology, will not only reduce drug abuse, but provide a way for pain patients to easily prove they are not ‘doctor shopping.’ This program will also enhance the confidence of doctors and pharmacists in a trustworthy process of dispensing prescriptions.”

“Through the use of biometric identity verification, PPPFD is taking an innovative approach to combat the growing worldwide problem of prescription drug abuse and identity theft related to legitimate prescription narcotic drugs, as well as preventing these drugs from surreptitiously getting in the hands of minors,” said Jim Miller, ImageWare’s chairman and CEO. “This pilot project is a perfect example of the flexibility of ImageWare’s biometrically-enabled solutions that can be customized for various identity management purposes – from healthcare, government, justice and public safety to financial institutions and commercial enterprises.” PPPFD Forensic Screeners will conduct forensic pain assessments in the offices of participating doctors, who prescribe narcotic medicine for pain, in order to qualify potential Patient Participants. Qualifying patients will have one of their fingerprint images captured as well as their facial image by a trained PPPFD Forensic Screener for entry into a centralized database of pain management patients. Participating patients will benefit from faster access to their legitimate medications. Meanwhile, doctors and pharmacists will benefit from greater trust ensuring their resources are not stolen, squandered, or otherwise used for drug abuse.

IWS™ Biometric Engine® Management Application
ImageWare will provide PPPFD with a customized application solution based on its award-winning IWS™ Biometric Engine®. The Web-based application and the IWS™ Biometric Engine® supply server-based biometric identity management features and functions, while PPPFD users have client-based presentation of the data and workflow. This customized application guides the users through the biometric enrollment process, the verification that no duplicate enrollments exist, and the production of the PPPFD ID card using the IWS EPI Builder card printing tools.

IWS EPI Builder
IWS EPI Builder is recognized as a leading secure credential component of identity management and security solutions, providing all aspects of ID functionality from image and biometric capture to the enrollment, issuance and management of secure documents. IWS EPI Builder is designed specifically to facilitate the production of high-end, secure credential systems and enables organizations to develop custom identification solutions or incorporate sophisticated identification capabilities into existing applications. Components allow users to:

  • Capture image, biometric and demographic data
  • Enable biometric identification and verification (1:1 and 1:X)
  • Support numerous biometric hardware and software vendors
  • Develop custom secure credentials
  • Encode magnetic stripes, bar codes and smart chips
  • Print IDs or other documents including national IDs, passports and access control credentials

IWS™ Biometric Engine® The IWS™ Biometric Engine®’s multi-biometric enrollment, management and authentication platform allows users to biometrically search and match populations of unlimited sizes for identity confirmation. Searches can be 1:1 (Verification), 1:N (Identification), X:N (Investigative) and N:N (Population Management). IWS™ Biometric Engine® is technology agnostic, enabling users to employ biometric devices and algorithms from virtually any vendor, as well as support the combination of the following biometric types, including: single fingerprint, Livescan fingerprint, 2D face, 3D face, iris, palm scan, finger vein, palm vein, hand geometry, palm, DNA, signature, voice, and retina. The IWS™ Biometric Engine® currently supports over 100 devices and methods of biometric acquisition and 73 biometric algorithms.

For more information on PPPFD and its Forensic Medicine Technology program, please e-mail TrustworthyLLP@msn.com. For more information on ImageWare’s solutions, please call 800-842-4199 or e-mail sales@iwsinc.com.

About ImageWare Systems, Inc.
ImageWare Systems, Inc. (AMEX:IW), is a 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 Washington DC and Canada. 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.


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