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ImageWare PIV Solution Granted “Ready for Tivoli Software” Mark

Integration of ImageWare End-to-End PIV Solution and IBM Tivoli Identity Manager Streamlines PIV Enrollment and Card Issuance for Federal Agencies

SANDIEGO, CA - May 16, 2007 - ImageWare® Systems, Inc. (AMEX: IW), a leading developer of identity management solutions, today announced that its IWS™ PIV Solution has been validated by IBM Tivoli as a Ready for Tivoli Software solution. This validation indicates that ImageWare’s IWS PIV Solution meets or exceeds IBM compatibility criteria and successfully integrates with IBM Tivoli Identity Manager (TIM).

ImageWare’s IWS PIV Solution is a complete Personal Identity Verification (PIV) solution that enables Federal government agencies and private enterprises to implement a biometrically-enabled identity management solution in compliance with the National Institute of Standards and Technology (NIST) Federal Information Processing 201 (FIPS-201) (PIV-I and II) requirements of the Homeland Security Presidential Directive 12 (HSPD-12), a directive mandating a common identification standard for all Federal government employees and contractors.

“IBM Tivoli is one of the market-leading identity management solutions of choice in the industry,” said Jim Miller, ImageWare’s chairman and CEO. “ImageWare’s PIV solution complements IBM TIM by adding a suite of applications which incorporate our flagship products, IWS™ Biometric Engine® and IWS™ EPI Card Management™ solution. By meeting IBM’s integration standards, we will be able to provide customers with validated solutions that are interoperable with their existing infrastructure and flexible as they evolve.”

With the integrated solution, Federal agencies can enhance their security infrastructure and extend IBM TIM to include the enrollment and management of biometrics, and the provisioning of hard assets such as biometrically-enabled smart credentials.

The ImageWare PIV solution provides a complete and interoperable solution with features and functions required throughout the PIV life-cycle, enabling users the flexibility to make use of any desired options, such as identity proofing and enrollment, card issuance, maintenance and access control. This complete software solution offers the significant benefit that one vendor’s solution is used throughout the various stages, from establishing an applicant’s verified identity, to issuance of smart card based credentials, to the usage and integration to physical and logical access control systems. The PIV solution can be found in the IBM Tivoli Open Process Automation Library (OPAL) at www.ibm.com/software/tivoli/opal.

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. ImageWare is headquartered in San Diego, with offices in Washington DC and Canada. For more information visit http://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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