ImageWare Selected for NSETS II Participation

ImageWare Systems, Inc. (OTCBB: IWSYE) has been selected by Genesis Electronics Corporation (GEC) to provide software, engineering services, and support on GEC task orders under the National Security Agency (NSA) Set-Aside for Small Business (NSETS) II Program. Through this new partnership with GEC, ImageWare products are eligible to fulfill requirements under the NSETS II $800 million multiple award task and delivery order contract vehicle for small business.

"IWS is a premier small business biometric identity management software provider offering a patented open platform allowing government customers unprecedented flexibility, cost savings and reduced risk of adoption. GEC welcomes IWS as a key partner on all requirements of the contract that involve identity management, biometrics and voice translation," said Wayne Betts, GEC president and chief executive officer.

GEC is a tier one partner in the Premier Analysis Joint Venture contracted under a three year indefinite delivery, indefinite quantity (IDIQ) contract to provide support in the functional areas of: Business and Systems Engineering, Technical Assistance, Engineering, Information Technology, Operations Support and Training. The contract gives GEC the right to bid on all delivery orders encompassing work in any of the five functional areas.

"We are excited and honored to have been selected to support GEC under this large Federal program, and to bring the IWS patented products and leading edge service capabilities to satisfy requirements under this program," said Jim Miller, ImageWare Systems chief executive officer.

Maryland-based Genesis Electronics Corporation is a privately held company that sells primarily to the US government.

About ImageWare Systems, Inc.

ImageWare Systems, Inc. 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 Portland, OR, 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.

Company Contact: Wayne Wetherell ImageWare Systems, Inc. (858) 673-8600