SAN DIEGO, CA, August 23, 2006 - ImageWare® Systems, Inc. (AMEX: IW), a leading developer and provider of identity management solutions, today announced that the Stanislaus County Sheriff’s Department is broadening the use its IWS™ Law Enforcement to enable Web-based investigations and provide an enhanced data sharing and booking platform.

Under the terms of the agreement, ImageWare will upgrade their IWS Law Enforcement platform and Web-based investigative capabilities that will enhance the ability of the Stanislaus County Sheriff’s Department to identify suspects by creating photo lineups and mugbooks. Stanislaus County Sheriff’s will also have the ability to view suspect records in real-time and share that data throughout the department.

“ImageWare’s Web-based application is an effective tool for investigators who need immediate information and photographs in order to identify criminal suspects,” said Sheriff Adam Christianson. “The ability to view critical identifying information in the field, including photographs, is invaluable for all law enforcement personnel County-wide. This system allows access from any computer including patrol cars, investigative work stations and allied law enforcement agencies. ImageWare provides an effective tool that has a direct impact on public safety.”

"We are thrilled to see law enforcement agencies such as the Stanislaus County Sheriff Department continue to take full advantage of the technologies we offer," said Jim Miller, Chairman and CEO, ImageWare Systems. "The ability to search, retrieve and share data in real-time is paramount for law enforcement agencies looking to simplify their investigative processes and better protect the public. We look forward to continuing our productive relationship with the Stanislaus County Sheriff’s Department.”

The Company’s expertise and intimate understanding of the law enforcement market, coupled with its advanced identity management technology, has enabled law enforcement officials around the world to quickly and accurately identify felons, expedite arrests and ensure public safety. ImageWare's Law Enforcement Product Suite is already in place at law enforcement locations such as Arizona Department of Public Safety, the San Bernardino Sheriff’s Department and Los Angeles County Sheriff’s Department, as well as the New South Wales Police, one of the largest law enforcement organizations in the world.

ImageWare’s IWS Law Enforcement is a complete digital booking, identification and investigative solution, enabling officers to capture, store and search booking data and images including mug shots, fingerprints, and scars, marks and tattoos (SMTs). IWS Law Enforcement solution also employs facial recognition technology to take an image or digital composite and search mug shot databases for potential matches based on similarities in facial characteristics and also integrates seamlessly with existing FBI, DMV, RMS, JMS, AFIS or other systems to capture live, scanned or imported images, as well as arrest and demographic data.

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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