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ImageWare Systems And SAGEM Morpho To Provide First Integrated Fingerprint And Mug Shot Capture System In Hawaii

ImageWare’s image capture technology bundled with SAGEM’s Integrated Livescan System (ILS2) to reduce data entry and streamline booking and investigation processes

SAN DIEGO, CA, March 8, 2004 - ImageWare Systems, Inc. (AMEX: IW), a global provider of digital imaging, biometric and identification solutions, and SAGEM Morpho, Inc., the world’s largest biometrics company, today announced an agreement to provide the Kauai County Police Department, Hawaii, with its first integrated fingerprint-mug shot capture system.

Under the terms of the agreement, SAGEM will license and incorporate ImageWare’s image capture technology into its ILS2 livescan station. This integrated solution will enable Kauai County officers to capture digital mug shot images and rolled or plain finger and palm prints from a single booking station. The Kauai County Police Department will also install ImageWare’s investigative solutions for law enforcement, which will enable them to search and retrieve criminal data, and create photo lineups and mug books once suspects are booked. This implementation eliminates the need for multiple capture stations and redundant data entry while streamlining the booking and investigative processes and complying with NIST standards.

“We are very pleased to have the opportunity to assist in the advancement of Kauai’s law enforcement identification technology,” said Jean-Marc Suchier, CEO of SAGEM Morpho. “SAGEM’s ILS2, coupled with ImageWare’s image capture technology, provides a seamless multi-biometric capture system that will improve Kauai County’s criminal booking process.”

All images that are captured will be stored in a central repository of mug shots and data hosted by the Hawaii Criminal Justice Data Center on the Island of Hawaii. The Center implemented ImageWare’s complete digital booking, investigative and identification solution in 2001 and has expanded the solution throughout other islands in Hawaii, including the Hawaii Police Departments at Hilo and Kona. This unique functionality has enabled these departments to share critical investigative data and expedite the booking and investigative processes.

“Real-time data sharing is a vital component to the law enforcement community,” said Joe Schuler, SVP of Sales and Marketing for ImageWare. “The ability to share mission-critical information facilitates the investigative process and supports criminal justice services more efficiently.”

About SAGEM Morpho, Inc.
SAGEM Morpho, the world’s largest biometrics company, develops, manufactures, and integrates multiple biometric technologies including fingerprint, iris and facial recognition products and services. SAGEM Morpho applies more than twenty years of global experience in biometric identification to deliver trusted and reliable biometric solutions to address many markets including law enforcement, federal government, Homeland Security, driver’s licenses, civil identification, applicant background checks as well as consumer and commercial products. SAGEM Morpho’s solutions are in use by government agencies including the FBI, NYPD and statewide systems for customers such as New York, Texas and Arizona. SAGEM Morpho is a wholly owned subsidiary of the European firm SAGEM. For more information, visit www.morpho.com.

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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