SAN DIEGO, CA, August 8, 2002 - ImageWare Systems, Inc. (AMEX:IW) today announced that it will expand its contract with the City of Milwaukee Police Department to incorporate facial recognition, consistent virtual lineup and composite sketching functionality to the criminal investigation and booking system it installed in late 2000. The facial recognition component is enabled by FaceIt®, proprietary facial recognition technology from Identix Incorporated (Nasdaq: IDNX). Since October of 2000, the Milwaukee PD has been utilizing ImageWare's Crime Capture System® (CCS), which allows police throughout the city and its precincts to capture, retrieve and share digital mugshots and related booking information. ImageWare's Face ID®, Suspect ID® and Lineup Image Sync CCS modules will now be added to CCS to enhance the capabilities of the Milwaukee PD in their search for and identification of suspects.

ImageWare's Face ID application utilizes facial recognition technology to search for and match facial characteristics of a suspect against a police department's CCS mugshot database. Suspect ID enables officers to create accurate composite images of suspects online. Lineup Image Sync CCS allows officers to ensure consistency in the backgrounds and sizes of digital suspect lineups, allowing the evidence to be admissible in court.

Dr. Joseph J. Atick, Identix president and CEO stated, "We believe the continued adoption of FaceIt enabled mug shot systems from ImageWare is a testament to the superiority of the underlying technology and the overall Face ID offering. We are pleased to be working with ImageWare and are committed to serving the needs of the law enforcement community and beyond."

"We are always excited to see law enforcement agencies take full advantage of the technologies we have to offer," said Jim Miller, ImageWare's chairman and CEO. "By adding facial recognition, digital composites and the ability to create consistent digital lineups to CCS, Milwaukee walks away with a truly state-of-the-art investigative system that will significantly help them to solve crimes more quickly and with fewer resources."

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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