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ImageWare Signs Contract With UPS to Provide Internet-Based Employee ID System

SAN DIEGO, CA, April 2, 2002 - ImageWare Systems, Inc. (AMEX:IW) has signed a multi-year contract with United Parcel Service to provide the company with its EPIWEB&trade Internet ID system. UPS will use the system to create and store digitized image and text data for authorized employees anywhere in the world, and for the production of secure digital employee ID cards.

EPIWEB is a secure software solution that creates a central Web-based employee database which can be managed by the corporate security department. It allows companies to exercise tight control over the production of authorized credentials. The system also automates the production and distribution of personalized ID badges, which can be created quickly and easily on the Web.

"EPIWEB allows large organizations to tightly control ID issuance, ensuring that the right people receive the right credentials, with speed and accuracy across the globe," said Jim Miller, ImageWare chief executive officer. "United Parcel Service is widely recognized for its leadership in the use of Web technology to serve customers and for greater efficiency. We are very pleased to have been chosen for this project."

The contract is transaction-based, with the total value determined by the number of ID badges produced over time, Miller said. EPIWEB offers a browser-based application and complete Internet ID card production system, including print management, departmental and audit tracking, shipping and client management. The system enhances security by creating a single centralized database with the image and text records for all employees enrolled in the system, allowing companies to control authorized credentials.

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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