Adds Two New Entry Level Photo ID Badging Solutions

SAN DIEGO, CA, September 12, 2005 - ImageWare® Systems, Inc. (AMEX: IW), a world leading developer and provider of identity management solutions, has extended their identification suite of products with the launch of two entry-level ID software applications - IWS™ EPI™ ID and IWS™ EPI™ Xpress. The announcement was made today at the ASIS International 51st Annual Seminar being held at the Orange County Convention Center in Orlando, Florida. Attendees can view a live demo at ImageWare’s Booth #529.

The IWS EPI ID software is the most easy-to-use photo identification solution designed for organizations looking to create simple, professional looking photo ID badges. IWS EPI ID features simple point-and-click image capture and image customization tools such as color correction and cropping, as well as custom card design, dual sided printing, bar code and three track magnetic stripe encoding, in addition to a database that can store up to 500 identification records. IWS EPI Xpress is a quick and simple photo badging solution that enables organizations to instantly print photo IDs for employees, visitors, events and more. With its intuitive wizard interface, organizations can produce attractive photo ID cards without extensive training. IWS EPI Xpress also features readily available sample card designs, enabling users to quickly print quality ID cards or produce customized cards by adding unique logos, background images, photos, signatures and barcodes – all within seconds.

“Leveraging our experience in secure credentials, we have developed two affordable and easy-to-use solutions that enable organizations of all sizes the ability to create and manage basic-to-complex photo identifications,” said ImageWare Systems CEO Jim Miller. “The release of IWS EPI ID and IWS EPI Xpress also provides a natural migration path that can take organizations from producing simple photo identification to highly-secure credentials with biometrics utilizing our IWS™ EPI™ Suite secure credential solution.”

IWS EPI Suite, the leading photo ID software solution that enables users to easily create, manage and produce simple-to-complex secure identification, with biometrics. With its smart face finding technology, IWS EPI Suite automatically locates the face; centers, crops and enhances the image to ensure every ID card is consistent and professional looking. Customized camera drivers automatically capture images and populate the database, increasing the speed and efficiency of the card enrollment process.

Powerful printing and encoding capabilities enable users to encode biometrics into smart chips, bar codes and magnetic stripes inline with the printing process decreasing card production time and can act as portable databases enabling users to deploy highly secure and reliable, high-volume applications within their specific industry.

Availability
IWS EPI ID and IWS EPI Xpress are available immediately through authorized ImageWare distributors. For a complete listing of these authorized dealers, please visit www.iwsinc.com or call (800) 842-4199. For information on becoming an authorized distributor/dealer visit www.iwsinc.com/BecomeaPartner.cfm or call (800) 842-4199, ext. 168.

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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