SAN DIEGO, CA, October 11, 2005 - ImageWare® Systems, Inc. (AMEX: IW), a world leading developer and provider of identity management solutions, today announced a licensing agreement with NEC Personal Products, Ltd, a wholly owned subsidiary of NEC Corporation (NASDAQ: NIPNY) (FTSE: 6701q.l), that will bring the power of IWS Desktop Security to the largest personal computer provider in Japan.

NEC is shipping ImageWare’s IWS Desktop Security with NEC’s new line of Business PCs in Japan. IWS Desktop Security is a comprehensive authentication management platform that is optimized to enhance corporate security and usability, avoiding unauthorized access to mission-critical data. NEC’s new lineup of its Mate desktop (11 models) and VersaPro Laptop (23 models) products include an embedded TPM chip with IWS Desktop Security as a standard configuration. Bundling ImageWare’s IWS Desktop Security with NEC’s Mate and VersaPro product line provides users with an additional layer of security such as password management and file/folder encryption using the strong encryption features of the TPM chip. Support for Windows login with TPM security will ship in November 2005.

Additionally, the companies are working collaboratively to integrate ImageWare’s authentication security technology into NEC’s fingerprint sensor embedded computer product lines which will integrate additional security to the laptop product line.

“NEC selected ImageWare for its proven technology and experience in the security solutions market,” said Takashi Yoda, chief manager of NEC Business PC Division. “As NEC’s new line of PCs enter the marketplace with IWS Desktop Security we look forward to working together to bring enhanced usability and overall systems security to our customers.”

“We are very excited to announce our entrance into the Japanese market through this strategic partnership with NEC,” said Jim Miller, ImageWare’s chairman and CEO. “Our relationship with NEC will establish a firm foundation in the market and present new business opportunities through new and existing business relationships, distributors and systems integrators in Japan. ImageWare’s IWS Desktop Security, coupled with the TPM chip, provides overall system security with strong authentication between systems and networks, allowing secure access from doorway to desktop such as PCs, laptops, computer programs, as well as physical access to facilities and buildings. We are confident that our experience in the U.S. security industry will be of great value to NEC and its partners.”

About IWS Desktop Security
IWS Desktop Security enables organizations to maintain a simplified, yet secure method of seamlessly integrating various security devices within a centralized authentication platform. Specifically designed to provide enterprise networks and systems with the most advanced authentication mechanisms, IWS Desktop Security encompasses three robust modules that effectively protect critical data and enable organizations to maintain a simplified, yet secure method of seamlessly integrating various security devised within a centralized authentication platform. This solution can be integrated into any security network environment such as secure credential issuing and management systems.

The integrated device interface also offers a universal authentication management service towards various types of network framework layers including, LAN, WAN, VPN, VLAN, 802.1x wireless, as well as network servers such as MS Active Directory, and Citrix MetaFrame, upholding the integrity of the network security. Utilizing the platform, organizations are able to replace passwords, strengthen user authentication and condense existing authentication technologies and oversee authentication policies for the entire network environment.

About NEC Personal Products
NEC Personal Products, Ltd. (NECP) is the largest personal computer vendor in Japan. The company provides hardware platforms to both home/business customers as part of NEC Group. NECP takes full advantages of its integrated competencies in product planning, development, manufacturing, sales/marketing and service/support. NECP is also highly valued by customers due to its state-of-the-art technologies, environmentally friendly materials, and high standard of service/support. NECP is a wholly owned subsidiary of NEC Corporation. More information is available at: http://www.necp.co.jp/company/index_e.html.

About NEC Corporation NEC Corporation (NASDAQ: NIPNY) (FTSE: 6701q.l) is one of the world's leading providers of Internet, broadband network and enterprise business solutions dedicated to meeting the specialized needs of its diverse and global base of customers. Ranked as one of the world's top patent-producing companies, NEC delivers tailored solutions in the key fields of computer, networking and electron devices, by integrating its technical strengths in IT and Networks, and by providing advanced semiconductor solutions through NEC Electronics Corporation. The NEC Group employs more than 140,000 people worldwide and had net sales of 4,906 billion yen (approx. $47 billion) in the fiscal year ended March 2004. For additional information, please visit the NEC home page at: http://www.nec.com.

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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