SAN DIEGO, CA, February 2, 2006 - ImageWare® Systems, Inc. (AMEX: IW), a world leading developer and provider of identity management solutions, has entered into a two-year agreement with Grupo Inffinix for the exclusive distribution of ImageWare's biometric engine, law enforcement and secure credential solutions in Mexico, excluding specific customers and opportunities in the territory. Under the terms of this agreement, Grupo Inffinix will purchase a minimum of $700K in ImageWare products over the next two years, as well as incorporate the IWS™ Biometric Engine® from ImageWare into its product offerings which will be sold through Inffinix Biometrica, a division of Grupo Inffinix that focuses on Biometric Identity Management. Grupo Inffinix is a well recognized software development and systems integrator based in Mexico.

"ImageWare Systems is a leader in identity management solutions with a very important presence in the Mexican Market. This new partnership will provide Inffinix Biometrica with a wide range of solutions to offer our existing and new customers in Mexico, " said Fernando Tellez, Inffinix Biometrica's Director. "We look forward to a long lasting and profitable relationship between both companies and to provide to our existing and new customers with World-Class identity management solutions."

"Grupo Inffinix is well-known and highly regarded as a software solutions developer in Mexico, and a natural fit for ImageWare. This distribution agreement and the strong historical presence of Grupo Inffinix in the financial services, education and government markets represents a strategic approach to ensure the continued growth and expanded offering of ImageWare's identity management solutions in Mexico," said Jim Miller, ImageWare's chairman and CEO. "We are very pleased to have Grupo Inffinix as our partner and look forward to accelerating growth within the Mexican Biometric Identity Management market. ImageWare is committed to leveraging strategic partnerships that provide added-value to our product offerings and further penetrate worldwide markets."

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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