SAN DIEGO, CA, October 22, 2002 - ImageWare Systems, Inc. (AMEX: IW) today announced that it has been selected as the solution provider for the 3rd generation driver's license program in Indonesia. This agreement was concluded through ImageWare's German subsidiary, Digital Imaging International GmbH (DII). Under the terms of this agreement, ImageWare will use its EPIBUILDER™ software development kit to create a custom ID application, complete with the ability to capture images, signatures and fingerprints. This application will then be installed in 264 remote locations across Indonesia, alongside ImageWare's IDX380 card printer.

The estimated value of this agreement over the next five years is in excess of $15.0 million (US).

The EPIBUILDER tool kit enables developers to create custom, secure credential solutions including ID cards, visas, passports and other documents-or to integrate secure credentials with other applications such as access control, human resource or time and attendance systems. EPIBUILDER also provides developers with the ability to easily insert biometric capabilities into their applications, which can then be loaded onto an ID card or other credential with a smart chip, magstripe or 2D barcode.

ImageWare's IDX 380 retransfer card printer delivers fast, dual-sided and edge-to-edge printing, in addition to inline magnetic stripe and smart chip encoding.

Unique to a driver's license project of this magnitude is the incorporation of covert state-of-the-art security features, including holograms that can be seen with black light only and the encryption of text, which is visible only with a specialized lens, into the card holder's photo.

"ImageWare builds solutions that enable organizations, wherever they are in the world, to produce, track and manage identification while employing cutting-edge security measures such as smart chip encoding of biometric data," stated Jim Miller, ImageWare's chairman and CEO.

"Identity verification is an issue critical to global security and we are acutely focused on pursuing increasingly large opportunities in this market," added Miller.

ImageWare has also produced comprehensive driver's license programs in Singapore, the United Arab Emirates, Oman and Guam. ImageWare solutions have an enormous array of applications in addition to driver's licenses. The company has also developed identity card systems in the United Arab Emirates, passport solutions in Indonesia, employee credentials for UPS in the U.S. and inmate identification systems in the El Hongo Prison in Baja California, Mexico.

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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