SAN DIEGO, CA, January 5, 2004 - ImageWare Systems, Inc. (AMEX: IW), a global provider of digital imaging, identification and biometric solutions, today announced that the Missouri City Police Department, TX, has selected the Company to replace its existing mug shot solution with ImageWare’s Crime Capture System (CCS). CCS is a complete digital booking, identification and investigative solution that will enable the Missouri City Police to capture, store and retrieve criminal mug shots, images and data. These images and data can be used to create photo lineups and mug books to help identify suspects involved in a crime and speed the investigative process. CCS will have a direct interface to the Department’s Records Management System (RMS), allowing data from the RMS to automatically be populated into CCS during the booking process.

ImageWare will also implement a browser-based investigative solution, which will empower the Missouri City Police to search CCS and create photo lineups and mug books from remote facilities via the Web.

“The Missouri City Police is dedicated to identifying concerns and implementing state-of-the-art solutions to help prevent crime and keep our community safe,” said Robert Girndt, radio systems administrator for Missouri City Police. “With ImageWare’s law enforcement solutions, our officers are equipped with the necessary tools to quickly identify possible suspects involved in a crime, which speeds our investigations and helps keep our streets safer.”

ImageWare’s CCS enables officers to capture images including mug shots, scars, marks and tattoos, in addition to related text information. This information can be retrieved to create photo lineups and mug books; generate wanted posters; print employee, visitor or inmate ID cards or wristbands; and more. Optional add-on modules enable users to search the database for potential suspects based on facial recognition technology and to access CCS data and images via the Web or wirelessly, via a mobile data terminal or PDA.

“ImageWare’s law enforcement solutions have been implemented in more than 900 agencies nationwide,” said Joe Schuler, ImageWare’s senior vice president of sales and marketing. “ImageWare’s CCS is designed to empower law enforcement agencies to replace manual processes with automated criminal investigations and bookings."

The Missouri City Police Department is comprised of 85 sworn and civilian employees who provide a variety of services including uniform patrol and traffic law enforcement, criminal investigation and detection, emergency communications, animal control, and records management.

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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