SAN DIEGO, CA, January 24, 2007 - ImageWare® Systems, Inc. (AMEX: IW), a leading developer of identity management solutions, today announced the company has received two new orders totaling $280,000 for its IWS™ Biometric Engine® multi-biometric identity management platform. These orders were received from an undisclosed U.S. Federal Government agency and a large systems integrator.

“This add-on order from a large systems integrator further demonstrates the demand for our biometric identity management expertise to provide a complete solution or components to help meet compliance standards and customer requirements. The order from a government agency is new and we’re excited that our Biometric Engine will be leveraged for biometric access control as well as multi-modal biometric capabilities for use in tactical applications,” said Jim Miller, ImageWare’s chairman and CEO. “Our customers continue to recognize the value of our Biometric Engine’s scalable and interoperable solutions that are vendor neutral, open-architected and standards based.”

About IWS™ Biometric Engine®

The IWS™ Biometric Engine® is a scalable, multi-biometric enrollment, management and identification platform, enabling users to biometrically search and match populations of unlimited sizes for identity confirmation. Searches can be 1:1 (verification), 1:N (identification), X:N (investigative) and N:N (enrollment integrity). The IWS™ Biometric Engine® is available as part of a Web-based, biometric enrollment, identification, verification and investigative application or as a platform that enables system integrators to build custom identity management applications or incorporate biometric enrollment, search and authentication functionality into existing applications. An expanded suite of application solutions based on the IWS™ Biometric Engine® is also available to enable government, law enforcement, border management and enterprise businesses address specific government mandates and technology standards. It also provides the ability to integrate into existing legacy systems and expand based upon specific customer requirements. The new application suite of products include complete packaged solutions for:

• HSPD-12 Personal Identity Verification (PIV)
• Border Management
• ePassport & eVisa
• Applicant Identity Vetting
• Mobile Acquisition
• Disaster Management
• Physical Access Control
• Single-Sign-On and Logical Access Control

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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