SAN DIEGO, CA, August 30, 2004 - ImageWare® Systems, Inc. (AMEX: IW), a leading global developer of identification, biometric and digital imaging software solutions, today announced that the Maricopa County Sheriff’s Office (MCSO) in Ariz. will broaden their use of IWS™ Law Enforcement to include two new jails with holding capacity of more than 2000 inmates each. MCSO is the nation’s fourth largest county law enforcement office and the third largest in inmate bookings.

“The Maricopa County Sheriff's Office is a fully integrated law enforcement agency committed to being the leader in establishing the standards for providing professional quality law enforcement, detention, and support services to the citizens of Maricopa County and to other criminal justice agencies,” said Sgt. Artur W. Fay of Maricopa County Sheriff’s Office. “We look forward to advancing our relationship with ImageWare and expanding the use of IWS Law Enforcement in the new jails.”

MCSO currently uses IWS Law Enforcement to capture, store and retrieve criminal mug shots and related data and images, and share this data with the Arizona Department of Public Safety (AZDPS) as part of the Statewide Automated Fingerprint Identification System (AZAFIS) /Mug Photo Interface (MPI) Subsystem.

In an earlier announcement, AZDPS selected to expand its use of ImageWare’s law enforcement software to include IWS™ Biometric Engine® to conduct facial recognition searches on a copy of all driver license images from the Arizona Motor Vehicle Division (MVD) which is also contained in the AZAFIS / MPI Subsystem.

Since 1998, law enforcement organizations across the State of Arizona, including sheriffs’ offices, correction facilities and police departments, have been using ImageWare’s law enforcement solutions, including its IWS Law Enforcement and IWS™ Biometric Engine® to conduct investigative searches and to share critical information with other agencies such as the Federal Bureau of Investigations (FBI), Immigration and Naturalization Service (INS), and U.S. Customs.

IWS Law Enforcement, formerly known as Crime Capture System (CCS), is a digital booking, identification and investigative solution that provides law enforcement organizations the ability to capture, search and retrieve criminal mug shots and booking information, and create photo lineups, mug books and photo ID. The IWS™ Biometric Engine® is a scalable, agnostic omni-biometric identity management solution. The IWS™ Biometric Engine® is available as a fully functional Web-based enrollment and identification application or as an SDK that enables it to be integrated into a variety of applications such as national ID, border control, watch list, voter registration, driver license, airport security and more.

The IWS™ Biometric Engine® conducts 1:1 biometric searches to verify an individual's identity; 1:n searches to identify an individual within a population; and x:n investigative searches against watch lists and/or black lists. It is vendor independent and supports virtually any biometric algorithm and hardware and can manage tens of millions of individuals using standard off-the-shelf hardware.

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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