Updates

ImageWare Signs $500k Patent Licensing Agreement

For Immediate Release     SAN DIEGO, October 6, 2005 – ImageWare® Systems, Inc. (AMEX: IW), a world leading developer and provider ofentity management solutions, today announced it has signed a patent license agreement with Boston Equities Corporation to employ ImageWare’s digital imaging technology for the development, manufacture, and sublicensing of technology in the field of computer video and Web conferencing, including applications that operate on servers, desktop and laptop computers, Tablet PCs, personal digital assistants (PDAs), mobile phones and other portable devices. In consideration for the patent license granted, Boston Equities Corporation will pay ImageWare a fee of $500,000 in addition to continued royalties based on sublicenses granted.   “We are pleased to conclude this patent agreement with Boston Equities Corporation,” said Jim Miller, ImageWare’s chairman and CEO. “ImageWare is committed to developing innovative and state-of-the-artentity management products, and this agreement further demonstrates the strength of the intellectual property underlying our technology."   About ImageWare Systems, Inc. ImageWare Systems, Inc. (AMEX:IW) is a world leading developer and provider ofentity 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'sentification products are used to manage and issue secure credentials including nationals, 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 Canada and Germany. 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.   Contact:   Joyce Watts ImageWare Systems, Inc. 858-673-8600 ext. 133 jwatts@iwsinc.com