SAN DIEGO, CA, October 11, 1999 - ImageWare Systems, Inc. (AMEX:IW) a leader and innovator of digital imaging solutions for law enforcement, is pleased to announce the release of its latest generation digital booking software. Crime Capture System® Version 2.0 (CCS2) provides law enforcement agencies with a more flexible, easy-to-use digital booking, identification, and retrieval system which increases crime resolution and efficiency, while significantly reducing time and costs.

The newest version of CCS2 is Windows® based and incorporates many enhancements that allow for greater user flexibility and configurability. Most notably, CCS2 features the ability to customize the New Record screen in any number of separate databases. For instance, the fields specified on the employee database screen can be completely unique to those in the juvenile database. Each disparate database runs on one system, eliminating the need to purchase separate systems. In addition, a new generic interconnect allows for easier interfacing with other systems including jail and record management, further enhancing agency efficiency.

Additional customization capabilities of CCS2 include changing field labels, setting mandatory fields, adding pick lists, and specifying character validation. In total, sixteen user definable fields have been added, while at the same time the screen has been simplified by utilizing many tab and pop-up dialogues.

CCS2 also handles and keeps track of detailed multiple appearances. A suspect may be photographed with glasses and without, and the text description of the appearance could note that difference. The text information can be copied from one appearance to another to save users from having to re-enter similar data. The system also has the ability to capture and classify an unlimited number of Scars, Marks and Tattoo images for each record.

"CCS2 is a very useful tool, providing us with a Y2K fix, additional user-friendly features, and upgrading us to the 1996 jpeg standard for imaging which is critical for us to work with other software programs," commented Dave Cotton, Forensic Investigations Supervisor, Pierce County Washington. "All the information we need is accessible on one screen, instead of having to toggle back and forth. An especially useful feature is the ability to see up to 25 mugshot images at a time, giving a wide-variety of choices for quickly developing high quality photo line-ups."

"The introduction of Crime Capture System Version 2.0 in law enforcement continues ImageWare’s commitment to revolutionize the process of identifying suspects and resolving crime," said Jim Miller, president and CEO of ImageWare. "I am confident that they will find CCS2 significantly more flexible and efficient."

ImageWare is currently fulfilling CCS2 upgrade requests for existing customers, and has received purchase orders for new installations at various law enforcement agencies including:

• Ventura County Sheriff’s Department, California
• New London Police Department, Connecticut
• Providence Police Department, Rhode Island
• San Antonio Police Department, Texas
• Kitsap County Sheriff’s Department, Washington
• Milwaukee County Sheriff Department, Wisconsin

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.

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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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