SAN DIEGO, CA, January 26, 2004 - ImageWare Systems, Inc. (AMEX: IW), a global provider of digital imaging, identification and biometric solutions, today announced that the Portland Police Bureau, OR, has selected the Company to expand its existing Crime Capture System® (CCS) to enable Web-based investigations and provide an enhanced data sharing platform with the Multnomah County Sheriff’s Department. As part of the implementation, the Portland Police Bureau will also leverage ImageWare’s CCS to create and produce all employee identification cards.

“We are very excited about this upgrade and look forward to conducting Web-based investigations using our secure intranet and mobile data terminals, as well as housing our own criminal data which will include data from the Multnomah County Sheriff’s Department,” said Capt. Greg Hendricks of the Portland Police Bureau. “Our officers now have the tools they need to speed the investigative process and access criminal booking data remotely.”

ImageWare’s CCS is a digital booking, identification and investigation solution that enables law enforcement organizations to capture, store and retrieve criminal mug shots, images and data. These images include mug shots, scars, marks and tattoos, and can be used to create photo lineups and mug books to help identify suspects involved in a crime and speed the investigative process. ImageWare’s CCS can also be leveraged to create employee, visitor or inmate ID cards or wristbands. 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 are being used by more than 900 law enforcement organizations nationwide,” said Joe Schuler, ImageWare’s SVP of sales and marketing. “We are seeing an aggressive shift toward real-time data sharing and we credit the ease-of-use and customizable functionality of our law enforcement solutions. We are committed to developing advanced technology that gets mission-critical data into the hands of public safety officials when and where they need it most.”

The mission of the Portland Police Bureau is to maintain and improve community livability by working with all citizens to preserve life, maintain human rights, protect property and promote individual responsibility and community commitment. The Portland Police Bureau currently employs 950 sworn officers along with 260 non-sworn personnel throughout five precincts.

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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