SAN DIEGO, CA, December 6, 2006 - ImageWare® Systems, Inc. (AMEX: IW), a leading developer of identity management solutions, today announced it has been awarded a contract valued at approximately $288,000 to enhance the multi-biometric identification system the company initially developed in 2004 for the Secretaría de Relaciones Exteriores (SRE), the Mexican Ministry of Foreign Affairs. The system is known as SIRLI, an acronym for System for the Identification of Remains and Localization of Individuals.

“Today’s announcement is another example of the scalability and interoperability of our technologies and our commitment to helping our customers achieve their identity management requirements,” said Jim Miller, ImageWare’s chairman and CEO. “We are very proud of the SIRLI system and with its growing success, ImageWare’s biometric identity management and investigative capabilities are meeting the imperatives of the Mexican Government.”

Under the terms of the contract, ImageWare will expand the system to offer greater usability and functionality including N:N, also known as population management, searching to ensure enrollment integrity, the ability to conduct searches on various systems such as passports using specific demographic or biometric data, and Web-based verification and identification capability to eliminate duplicate enrollments. ImageWare will also provide one-year software support.

The SIRLI system is operating in all Mexican consulates in the U.S. and in foreign relations offices throughout Mexico. It takes full advantage of ImageWare's award-winning IWS™ Biometric Engine® and Investigative platforms, incorporating facial, fingerprint, signature and DNA biometric capabilities. Its powerful and flexible identity management functionality also provides comprehensive searching capabilities, including personal demographic information taken from Mexican consular, military and voter registries. The solution is the first to effectively incorporate four biometrics into a single, integrated platform.

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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