ImageWare Systems Awarded $1.0 Million Contract to Implement Multi-Modal Biometric Driver License System for State of Baja California, Mexico

ImageWare's CloudID Platform to Provide More Than 1 Million Drivers Licenses Through 2016

SAN DIEGO, CA--(Marketwired - Jun 27, 2014) - ImageWare Systems, Inc. (OTCQB: IWSY), a leader in mobile and cloud-based, multi-modal biometric identity management solutions, was selected to implement a multi-modal biometric driver license system for the State of Baja California, Mexico.

The contract was awarded by the Funciones Ocupacionales Insha, S.A. de C.V., the prime contractor on the project. For ImageWare, the contract is valued at more than $1.0 million and its software will help generate more than one million licenses over the next three years. ImageWare will receive one time license fees for its software upon delivery and ongoing payments for its professional services and maintenance as delivered.

ImageWare will help to deploy the system at governmental offices in the largest cities in the state, including Tijuana, Mexicali, Tecate and Rosarito, as well as implement mobile stations through the state. The project will begin in the third quarter of 2014.

"As security needs become more complex and demanding, our customers increasingly appreciate the unique power and flexibility of our patented cloud-based, multi-modal biometric solutions," said Jim Miller, ImageWare's chairman and CEO. "Our proven track record of providing state-of-the-art biometric solutions for government agencies was a key factor in winning this award."

The multi-modal biometric driver license system will be based on ImageWare's CloudID™ modular software platform that supports the rapid development and deployment of highly secure, yet flexible identity management solutions for the creation of credentials, including IDs, passports, driver's licenses, smart cards and access control credentials. IWS CloudID is designed to deliver a "future proof" identity management solution, allowing unlimited population sizes and stations, as well as adding additional biometric modalities and incorporating new biometric devices.

The company's IWS QuickApps™ will provide the user interfaces to register applicants, validate identities and print and encode cards. Both IWS CloudID and IWS QuickApps are driven by ImageWare's patented, multi-modal Biometric Engine® 2.0, and the system can be integrated with the government's existing biometric identification and verifications processes. Security for the system will be managed by ImageWare's Desktop Security System, with the use of multifactor authentication, data encryption and a secured log of all actions by the user.

About ImageWare Systems, Inc. ImageWare Systems, Inc. (OTCQB: IWSY) is a leading developer of mobile and cloud-based identity management solutions, providing biometric, secure credential and law enforcement technologies. Scalable for worldwide deployment, ImageWare'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's 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, CA, with offices in Portland, OR, Washington, D.C., and Ottawa, Ontario. For more information on ImageWare Systems, Inc., please visit www.iwsinc.com.

Forward Looking Statements Any statements contained in this document that are not historical facts are forward-looking statements as defined in the U.S. Private Securities Litigation Reform Act of 1995. Words such as "anticipate," "believe," "estimate," "expect," "forecast," "intend," "may," "plan," "project," "predict," "if", "should" and "will" and similar expressions as they relate to ImageWare Systems, Inc. ("ImageWare") are intended to identify such forward-looking statements. ImageWare may from time to time update these publicly announced projections, but it is not obligated to do so. Any projections of future results of operations should not be construed in any manner as a guarantee that such results will in fact occur. These projections are subject to change and could differ materially from final reported results. For a discussion of such risks and uncertainties, see "Risk Factors" in ImageWare's Annual Report on Form 10-K for the fiscal year ended December 31, 2013 and its other reports filed with the Securities and Exchange Commission under the Securities 3 Exchange Act of 1934, as amended. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the dates on which they are made.

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