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ImageWare Systems, Inc. Awarded Additional Arizona Contracts

SAN DIEGO, CA, August 8, 2000 - ImageWare Systems, Inc. (AMEX:IW) today announced it was recently awarded contracts by two agencies in Arizona which will enable those agencies to tie into the statewide mug shot database managed by the Arizona Department of Public Safety (AZDPS). The two orders were received in the second quarter of this year from Maricopa County Sheriff's Office and from the City of Mesa totaling approximately $166,000 and $191,000 respectively.

In January 1998 ImageWare was awarded a contract to install its Crime Capture System (CCS) digital mug shot system as a statewide system tied to a central database managed by the AZDPS. The central database would then be available to all local agencies in the state that had compatible systems and wanted to tie into the AZDPS network. Since the installation of the statewide system in 1998, other Arizona agencies to purchase CCS systems and gain access to the AZDPS central database capability include: Tucson Police Department, Scottsdale Police Department, Phoenix Police Department, Gilbert Police Department, Pima County Attorney's Office, Chandler Police Department, Tempe Police Department, Arizona Department of Corrections and the Phoenix office of the FBI.

ImageWare recently announced that it had been selected to supply the New Jersey State Police with a statewide digital mug shot system. As it has experienced with Arizona, ImageWare expects to add many of the over 450 law enforcement agencies in New Jersey as customers once the statewide system has been installed.

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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