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ImageWare Systems To Provide Enterprise-Wide Digital Workflow Solution For The Picture People

SAN DIEGO, CA, August 26, 2003 - ImageWare Systems, Inc. (AMEX: IW) today announced that it will provide an enterprise-wide digital studio workflow solution for The Picture People, a wholly owned subsidiary of Hallmark Cards, Inc. that operates more than 300 stores in malls nationwide for contemporary, family and children portraits.

Under the terms of the agreement, ImageWare will customize its PDI Studio™ digital studio workflow solution which leverages advanced digital imaging, sales and client management applications to streamline operations and increase productivity.

ImageWare’s PDI Studio allows professional portrait studios to easily track the flow of files from data entry, image capture, sales, and pre-production tasks while ensuring accurate customer data and order fulfillment. With easy-to-use database management, package set-up, pricing and inventory control capabilities, ImageWare’s PDI Studio reduces the need for other studio management or invoicing software.

“We are delighted to be working with The Picture People. ImageWare’s PDI Studio will allow The Picture People portrait studios to conduct business in a more efficient, and profitable manner,” said Paul Devermann, president of ImageWare’s Professional Digital Imaging Division. “PDI Studio is a complete digital workflow solution that can ensure customer satisfaction, which leads to greater sales and orders.”

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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