Company Will Contribute to Dialogue on Passenger Pre-Screening, Related Aviation Security Issues & Programs

SAN DIEGO, CA, January 6, 2006 - ImageWare® Systems, Inc. (AMEX: IW), a world leading developer and provider of identity management solutions, today announced its sponsorship of the American Association of Airport Executives’ (AAAE) 20th Annual Aviation Issues Conference, held January 8 - 12, 2006, Hapuna Beach Prince Hotel, Kona, Hawaii.

The Aviation Issues Conference is a forum for far-reaching discussions between key aviation leaders from the U.S. Government, systems integrators and the private sector. And, with the Transportation Security Administration (TSA) seeking industry and public input on its plan to begin an airline passenger verification program at airports across the country in 2006, the conference is the ideal forum for outlining the viability of using security assessments and biometric-based identity verification technologies in the airport environment.

ImageWare will be demonstrating their biometric identity management platform, the IWS™ Biometric Engine®, which is well suited for large-scale programs like the one proposed by the TSA, allowing for multi-biometric searching and matching that is scalable and allows organizations to manage population databases of unlimited sizes. In addition, the Biometric Engine is technology and hardware agnostic, enabling users to employ biometric devices and algorithms from any vendor, as well as support the combination of the following biometric types: finger, face, iris, hand geometry, palm, DNA, signature, voice, 3D face and retina. In fact, the Biometric Engine currently supports ninety three hardware devices/methods or image acquisitions and sixty five biometric algorithms.

“Our contribution to the conference is a testament to our support for airline and airport security and related aviation programs,” said Jim Miller, Chairman and CEO, ImageWare Systems. “Through our expertise and industry insight, we hope to aid in the debate regarding passenger pre-screening as well as identify opportunities for ImageWare solutions to play an integral part in future programs, such as Registered Traveler.”

Under the Registered Traveler Program, airline passengers can pay a fee and voluntarily give their biographic and biometric information to TSA in exchange for expedited screening at airport security checkpoints.

The TSA estimates that the cost of administering Registered Traveler will be about $30 million a year, paid for by user fees. The agency expects to hire a private company to help administer the program and to enroll participants at airports nationwide. A request for proposals for the effort is expected to be issued after Jan. 20, according to the TSA.

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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