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ImageWare Systems and Carnival Cruise Lines Expand Biometric Photo Finding Kiosk Project

IWS™ Biometric Engine® powers additional kiosks aboard Miami-based Carnival ‘Fun Ship’

SAN DIEGO, CA, October 13, 2004 - ImageWare® Systems, Inc. (AMEX: IW), a global leader in identity management solutions, providing biometric, secure credential, law enforcement and digital imaging technologies, and Carnival Cruise Lines, the world’s largest cruise operator, today announced a pilot expansion of the biometric photo finding kiosk project currently aboard Carnival’s ‘Fun Ship’, Carnival Pride.

As part of the pilot expansion, Carnival will install two additional biometric photo-finding kiosks aboard a Miami-based Carnival ‘Fun Ship’ beginning this fall. The pilot consists of a system that is powered by the IWS™ Biometric Engine®, a scalable multi-biometric engine that enables the enrollment and management of unlimited population sizes. ImageWare’s multi-biometric engine, along with its facial recognition and digital imaging capabilities, enable guests to search and retrieve all keepsake photos taken of them while vacationing aboard the ‘Fun Ship’.

"Guest satisfaction is key to our success and Carnival is encouraged by the feedback its currently receiving from the biometric photo finding kiosk project aboard the Carnival Pride," said Bob Woodry, Carnival's vice president of Photo/Video Services. "Expanding this capability to a Miami-based Carnival 'Fun Ship' will enable us to better understand how best to deploy the technology within our fleet."

To access the system, a guest simply steps up to a stand-alone photo-retrieval kiosk, which will capture an image of his or her face. This image is compared, using facial recognition technology, to all faces within all photos that have been captured on the cruise. Once the search is complete, photos containing the guest, including group and individual shots, will appear on the screen and be available for review and purchase.

“ImageWare solutions are well known in the government sector, yet with our launch of the IWS™ Biometric Engine®, our product offerings have been extended beyond government and into more commercial and consumer-oriented markets,” commented Jim Miller, ImageWare’s chairman and CEO. “The potential for biometrics in consumer markets such as retail, banking, transportation and entertainment is staggering—and Carnival has demonstrated their technological savvy by being at the forefront of this trend. Carnival is a valued client of ImageWare and we look forward to growing our relationship providing technology to meet their needs today and in the future.”

The IWS™ Biometric Engine® specifically addresses mission-critical security applications and enables organizations to manage population databases of all sizes and conduct multi-modal, comparative biometric searches including exhaustive (1:n), specific (1:1) or investigative (x:n). Supporting ID management initiatives, the IWS Biometric engine can be deployed across a wide array of industries and applications including national ID, driver license, border control, amusement and events, and other identity management systems.

Carnival is the world’s most popular cruise line, with 19 ‘Fun Ships’ operating three-to 16-day voyages to The Bahamas, Caribbean, Mexican Riviera, Alaska, Hawaii, the Panama Canal, Canada, New England and Europe. The company currently has three new 110,000-ton “Fun Ships” with an estimated value of $1.5 billion scheduled for delivery between now and spring 2007.

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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