Recent Projects for Mexico Underscore Expertise in Biometrics, Identity Management

SAN DIEGO, CA, July 25, 2005 - ImageWare® Systems, Inc. (AMEX: IW), a world leading developer and provider of biometric identity management solutions, announced today that they have received certification for interoperability with the Mexican National Public Security System’s (SNSP) Automated Fingerprint Identification System (AFIS). "We believe this interoperability certification with the Mexico SNSP provides confirmation of the progress we are making in the international marketplace,” said Jim Miller, CEO, ImageWare Systems. “Our Biometric Engine and Law Enforcement and Identification solution works seamlessly with Mexico’s existing Federal identification systems and effectively meets their specific needs. This certification is a clear demonstration of ImageWare’s commitment toward open architecture biometric identification systems and our dedication to this significant region.”

The SNSP AFIS interoperability certification means that Mexican Federal, State and Municipal institutions can now select ImageWare as the primary source for capture of either Livescan or 10 print criminal or civil fingerprints for background checks, and criminal registry as is currently required under Mexican law, or other services required of the Mexican SNSP AFIS. The certification also enables all of ImageWare’s Mexican customers to use the IWS™ Biometric Engine® to capture additional biometrics such as face, iris, palm, hand geometry, signature, and even DNA as required by their present and future applications. And, since ImageWare’s technologies are agnostic they provide the ability to use any distinct biometric algorithm(s) and virtually any biometric capture device, allowing customers to expand their systems at any time without concern for system obsolescence, thus protecting the investment the Mexican government has made in identity management technologies.

The SNSP certification is the latest in a string of projects for ImageWare in Latin America. Most recently, ImageWare developed and deployed a customized multi-biometric identification solution for the Mexico government to leverage multiple biometrics for identification purposes. This unique multi-biometric identification system leverages the Company’s IWS™ Biometric Engine® and investigative platforms, which incorporates facial, fingerprint, signature and DNA biometric capabilities – a first to integrate four biometrics into a single integrated platform. Its powerful and flexible identity management functionality allows for comprehensive searching capabilities including personal demographic information. "We believe Mexico’s continued acceptance of ImageWare technologies serves as an excellent example of our ability to offer and support sophisticated biometric identity management solutions worldwide,” Miller added. “We will continue to aggressively pursue international government related identity programs, as well as additional international private sector programs, and we look forward to further extending our reach into the international marketplace."

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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