SAN DIEGO, CA, September 18, 2000 - ImageWare Systems, Inc. (AMEX:IW) today announced it has agreed to purchase Goddard Technology Corporation of Greenville, SC.

Founded in 1986, Goddard Technology is a leading provider of custom ID badging, personnel imaging and database management systems for schools, universities, corporations and airports. Goddard's identification solutions range from large scale fully integrated turn key ID systems to a secure internet service offering which enables end users to create professional looking ID cards via the web without the purchase of ID card software and hardware.

According to ImageWare's Chairman and CEO, Jim Miller, "The Goddard acquisition delivers another component in ImageWare's digital imaging strategy of extending its imaging expertise and offering. We are looking at adjacent markets, such as identification cards, in which we could leverage our digital imaging and integration capabilities to gain entry into larger markets. Goddard was a natural choice as it has been committed to delivering state-of-the-art identification solutions, comprehensive integration and the highest quality of service to a premier group of commercial and government customers, such as the United Nations, Delta Airlines, Ohio State University, the World Trade Center, and airports at Dulles International, Atlanta-Hartsfield and Ronald Reagan."

"Like Goddard, ImageWare has been focused on delivering only the highest quality imaging solution to its customers and we are extremely excited about joining their family, said Bill Donohue, President Goddard Technology. Goddard's suite of cutting edge identification products and technical expertise coupled with ImageWare's strategic partners and its direct sales force will now allow us to offer solutions to previously untapped markets both vertically and geographically."

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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