SAN DIEGO, CA, May 14, 2001 - ImageWare Systems, Inc. (AMEX:IW) today announced the launch of EPIWEBTM, a secure Internet-based software system for designing, creating and purchasing identification cards and documents via the Internet.

EPIWEB was created for ID service bureau organizations to provide their customers, which includes over 10 million small and mid-sized U.S. businesses, with the ability to design and create personal identification cards, including personnel information, using a simple Internet browser.

ImageWare and ID service bureau, IDStation.com, will demonstrate EPIWEB at the upcoming CardTech/SecurTech (CTST) tradeshow May 14 to May 18, 2001 in Las Vegas.

"EPIWEB has gone live and the ID market will be forever changed," said Ian Fraser, President of Imageware System's ID Group. "Customers now have the ability to move to a Web-browser system, and the benefits are compelling. Smaller organizations can avoid up front costs and enjoy a pay-as-they-go program. Larger customers can outsource badge production, improve turnaround time for remote locations and, more importantly, reduce overhead."

"IDStation.com is proud to be the first to launch a browser-based ID Card Service Bureau solution offering EPIWEB's innovative technology," said Alan Mendelson, vice president of IDStation.com Inc. "EPIWEB permits us to service smaller organizations that could not justify the cost of a Digital Photo System, and empowers us with a comprehensive management system to ensure the highest level of service for our on-line customers."

The use of EPIWEB does not require any special software or expertise and users can create their own badge designs or choose from an inventory of existing designs. EPIWEB provides great functionality to customers as well as a complete turnkey operation to service bureaus. Its powerful back-office software helps streamline service bureau administration by managing the recruitment of customers; the printing, billing and shipping of orders; security and much more.

The market for EPIWEB is the 10 million small and mid-sized U.S. businesses that could benefit from employee or member identification credentials.

EPIWEB for service bureaus is the first of many web-based products to be delivered by Imageware's ID Group. ImageWare is committed to provide innovative new solutions to the ID marketplace and to leverage these offerings to all parts of an organization, including Security, IT, Finance and Human Resource departments.

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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