SAN DIEGO, CA, January 4, 2005 - ImageWare Systems, Inc. (AMEX: IW), a global leader in identity management solutions, today announced that it received a purchase order for products and services in excess of $520,000 from the Los Angeles County Sheriff’s Department (LASD). The LASD will expand the use of its IWS Law Enforcement solution into Correctional Facilities throughout Los Angeles County in support of their inmate identification initiative. ImageWare began implementation in Q4 2004 and will complete the project in Q1 2005.

LASD’s Correctional Facilities will leverage the IWS Law Enforcement solution to streamline their inmate photo identification process. The solution will be used to produce LASD’s primary inmate identification and will aid the Department in tracking inmate movement; preventing escapes and false releases; and reducing jail violence within the Department’s Correctional Facilities.

“The use of inmate identification cards will enhance our ability to track inmate movement. It is a major component in our pursuit to reduce inmate violence within the Los Angeles County jail system,” commented Lt. Mark Walker of the Los Angeles Sheriff’s Department. “Identification is critical to ensuring that inmates are where they should be,” added Walker. “It made sense to leverage our existing IWS Law Enforcement solution by expanding its photo identification capabilities to our Correctional Facilities. As a result, we have an end-to-end inmate identity management solution to enhance our ability to manage our inmates.”

“As a leader in identity management, ImageWare has been proactive in providing our law enforcement customers with solutions that facilitate their ability to identify people, whether they be inmates, criminal suspects or employees,” commented Jim Miller, ImageWare’s chairman and CEO. “This commitment is demonstrated by the inclusion of biometric facial recognition, Livescan fingerprint and photo identification capabilities with our IWS Law Enforcement booking and investigative solution. We are gratified that LASD has again chosen ImageWare to provide them with the solutions to meet their identity management needs.”

The IWS Law Enforcement is a digital booking, identification and investigative solution that enables officers to capture demographic data and images including mug shots, fingerprints, scars, marks and tattoos. Officers use this data to conduct text-based and biometric searches; create photo lineups and mugbooks; and generate wanted posters, speeding criminal investigations. Livescan fingerprint data can be sent directly to the State AFIS (Automated Fingerprint Identification System), FBI criminal repository or other agencies, as required. And to aide officers in identifying inmates, visitors and employees, IWS Law Enforcement is also used to generate ID cards and wristbands.

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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