ImageWare Systems Awarded $1.35 Million Purchase Order to Support HSPD-12

ImageWare® Systems, Inc. (AMEX:IW), a leading developer of identity management solutions, today announced the company has been awarded a purchase order totaling $1.35 million. Add-on maintenance and support is expected to bring the total value to $1.7 million. ImageWare is working with an undisclosed systems integrator to provide a federal government agency with solutions to enable its compliance with Homeland Security Presidential Directive 12 (HSPD-12), a directive mandating a common identification standard for all federal government employees and contractors. Delivery is expected in the third quarter of 2007. ImageWare’s solutions will provide the agency with large-scale, agency-wide biometric identity and credential management capabilities and enable the agency to produce personal identity verification (PIV) credentials in compliance with the International Standard Organization (ISO) and the National Institute of Standards and Technology (NIST) Federal Information Processing 201 (FIPS-201) requirements of HSPD-12. Under the terms of the agreement, ImageWare’s biometric identity management solution will include: Multi-biometric enrollment and management of face, Livescan fingerprint and fingerprint minutia; Identity proofing and vetting to prevent fraud and duplicate registrations; and Management of all biometric devices. Jim Miller, ImageWare’s chairman and CEO, remarked, "We are very excited our solution was selected by this customer for its HSPD-12 implementation. This order supports ImageWare’s guidance and puts us firmly on a path to attain our goal of breakeven and profitability for the second half of 2007. ImageWare has developed technology and products that enhance security measures and provide flexible and scalable performance to fulfill large-scale credential projects. This project exemplifies how our biometric identity management solutions help our customers meet compliance standards and emerging business requirements.” About ImageWare Biometric Identity Management Solution ImageWare’s biometric identity management solution, which incorporates the company’s award-winning IWS Biometric Engine and secure credentialing product suite, offers a complete solution to support PIV-I and PIV-II business processes, technical requirements, as well as the ability to partner with leading physical and logical access control vendors for logistics and deployment considerations. About IWS™ Biometric Engine™ The IWS Biometric Engine is a biometric identity management platform for multi-biometric searching and matching that is scalable, technology agnostic and allows organizations to manage population databases of unlimited sizes. The IWS Biometric Engine’s multi-biometric enrollment, management and authentication platform allows users to search and match tens of millions of biometrics for identity confirmation. Searches can be 1:1 (verification), 1:N (identification), X:N (investigative) and N:N (enrollment integrity). ImageWare has expanded the IWS Biometric Engine platform to meet specific customer requirements and added a suite of products to provide government, law enforcement, border management and enterprise businesses with a wide variety of application-specific solutions that 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 includes complete packaged solutions HSPD-12, First Responder Credentialing, Transportation Worker Identification Credential (TWIC), among others. IWS™ EPI Builder™ SDK IWS EPI Builder is recognized as a leading secure credential component of identity management and security solutions, providing all aspects of ID functionality from image and biometric capture to the enrollment, issuance and management of secure documents. IWS EPI Builder is designed specifically to facilitate the production of high-end, secure credential systems and enables organizations to develop custom identification solutions or incorporate sophisticated identification capabilities into existing applications. Components allow users to: Capture image, biometric and demographic data Enable biometric identification and verification (1:1 and 1:X) Support numerous biometric hardware and software vendors Develop custom secure credentials Encode magnetic stripes, bar codes and smart chips Print IDs or other documents including national IDs, passports and access control credentials IWS Background Server™ The IWS Background Server is a software application designed specifically for government and law enforcement organizations to support the first stage of biometric identity management functions such as identity proofing and vetting. IWS Background Check Server automatically processes the submission of an applicant’s demographic and biographic data to investigative bureaus for background checks prior to issuing a credential. About ImageWare Systems, Inc. ImageWare Systems, Inc. (AMEX:IW) is a leading developer of identity management solutions, providing biometric, secure credential and law enforcement 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. 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.