NEW ORLEANS, LA, September 15, 2003 - ImageWare Systems, Inc. (AMEX: IW) and Datastrip today jointly announced the integration of Datastrip’s 2D Superscript bar code symbology with ImageWare’s EPI Suite® secure credentialing software and EPI Builder™ software developer’s kit (SDK). The integration of Datastrip’s 2D Superscript bar code provides ImageWare customers the ability to add biometrics, photos and text to ID badges for enhanced security without enlargement of the bar code or the expense of deploying a smart chip.

ImageWare’s EPI Suite secure credentialing software is used to design, manage and produce secure identification cards for government, education, healthcare, public venue, public safety, retail and other markets. ImageWare's EPI Builder SDK enables programmers to develop custom identification solutions or incorporate sophisticated identification capabilities into existing applications.

Datastrip’s 2D symbology can store 2,800 bytes of data, including one or two biometric templates, digitized color or grayscale photographs, and/or encrypted biographical information and signatures, in a bar code that is approximately the size of a magnetic stripe. That is twice the capacity of other 2D bar codes in one-third the footprint, with no sacrifice in error correction. In addition, biometrics and photographs can be easily incorporated without the programming required by competing systems.

“The integration of our 2D Superscript symbology into ImageWare’s identification solutions will enable ImageWare users to execute robust new card projects as well as upgrade existing projects quickly, easily and cost-effectively,” said Chuck Lynch, Datastrip Vice President of Sales and Marketing. “By using our bar code system to add biometrics and/or encrypted photographs, personal information or passwords, card makers can safeguard their clients against tampering, identity theft and other security threats without increasing their cost per card.”

Use of Datastrip’s technology ensures that no one can successfully impersonate the legitimate cardholder because the bar code cannot be altered without disabling the encoded information. Implementation is a fraction of the cost of other solutions due to inexpensive setup and deployment as well as the ability to print the bar code with any card printer or standard 300 dpi laser printer.

“Governments, companies and other ID badge users today are requiring more and more information on each badge to ensure accurate verification of the cardholder’s identity,” said Joe Schuler, President of ImageWare’s ID Solutions Division. “Datastrip’s technology offers a low-cost, easy-to-use solution that will equip our customers, system integrators and OEMs with new tools to ensure card authenticity and combat identity fraud.”

Identity verification on ID badges using Datastrip bar codes can be performed with either Datastrip’s DSVerify2D or PCRead2D reader. The DSVerify2D is the first handheld biometric ID card reader capable of decoding fingerprints, text and photographs with one swipe, and can operate either in a stand-alone configuration or as part of a PC-based solution. The PCRead2D is a PC-based card scanner that is roughly the size of a pocket calculator, conserving valuable real estate at the workstation.

About Datastrip
Datastrip is a leading provider of 2D bar code software, hardware and biometric verification devices, including the 2D Superscript high-density bar code Software Developers Kit (SDK); the DSVerify2D handheld integrated bar code, smart card, passport and fingerprint reader; and the PCRead2D reader for decoding 2D bar codes on a PC. Datastrip and its integration partners provide total solutions for production of ID cards, passports, national ID cards, driver’s licenses, voter registration cards, health cards, financial cards, birth certificates and other identity documents, as well as biometric verification systems. For more information, visit www.datastrip.com.

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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