SAN DIEGO, CA, October 1, 2001 - ImageWare Systems, Inc. (AMEX:IW) today announced that three new security company partners, utilizing ImageWare's EPIWEB technology, will offer organizations the ability to produce secure identification documents via the Internet. AAMSCO Identification Products, Integrated Precision Systems and PlastiCard Systems join IDStation.com as the only ID service bureaus offering EPIWEB, a secure, web-based software solution for designing, creating and purchasing identification cards and documents.

EPIWEB ID service bureaus provide organizations of all sizes a flexible and convenient solution in the identification and badging of personnel. The digital imaging system reduces overhead, avoids up-front costs, allows for the outsourcing of badge production and improves turnaround time for remote locations.

"Our new partners are leading security companies with well established reputations for providing secure, high quality digital photo identification documents. We are convinced that EPIWEB will help our new partners enter the growing online market for employee badging services," said Ian Fraser, President of ImageWare Systems ID Group.

"Although demand for digital ID badges continues to increase, there are market segments and applications, which may not want to purchase and maintain an ID system at this time. BadgeCenter.com, based on the EPIWEB technology platform was designed to provide a complete card production solution for resellers within the digital ID industry. The reselling dealer will now have the opportunity to provide customers at large the easiest, most reliable web based ID production service without having them invest in systems themselves," said Geoff Riordan, President, AAMSCO Identification Products.

"We are excited to offer this technology to our existing customer base as well as our target markets. This product is a key component of our overall offer to provide the 'best of breed', integrated Security and Time and Attendance solutions to the Health Care, Government, Education and Manufacturing environments," said Jim Butkovic, President, Integrated Precision Systems, Inc.

"PLASTICARD offers identification solutions to customers worldwide. If purchasing a complete ID system is not in your organization's plans or budget, consider PlastiCard's EZ-Card Bureau. The EZ-Card Bureau was developed with EPIWEB technology to provide organizations with the opportunity to have quality ID badges designed and produced by PlastiCard professionals. The EZ-CARD web site will permit our customers the flexibility they need to produce as many or as few cards as they require," said Don Axline, Vice-president, PlastiCard Systems.

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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