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ImageWare to Provide Leading Edge Crime Capture System to State of Minnesota

SAN DIEGO, CA, July 10, 2001 - ImageWare Systems, Inc. (AMEX:IW) said today that it received a purchase order to provide seven Crime Capture System (CCS) systems to the State of Minnesota's Bureau of Criminal Apprehension. ImageWare's technology assists police in their efforts to timely locate and apprehend criminal suspects.

"ImageWare's state-of-the-art technology is helping the State of Minnesota ensure the safety of its citizens," said Jim Miller, ImageWare chairman and chief executive officer. "By installing our information sharing network and repository of criminal information, participating sheriff departments will be able to share criminal history information, including digital mugshots, in an efficient and cost effective manner. The system allows a user to search thousands of records for a possible suspect and create photo line-ups using photos from every participating agency."

Earlier this year, ImageWare provided a CCS repository system to the State of Minnesota's Department of Public Safety, in conjunction with six other county sheriff departments. The new installations, scheduled for completion by August 31, 2001, include three CCS stations in Dakota County, two in Ramsey County and two in Washington County. ImageWare's current installation base comprises over 13 capture stations and 42 investigative stations in counties throughout Minnesota.

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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