Department Of Veterans Affairs To Use IWS EPI Builder For AAIP Smart Card Initiative
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[September 07, 2004]

Department Of Veterans Affairs To Use IWS EPI Builder For AAIP Smart Card Initiative

SAN DIEGO --(Business Wire)-- Sept. 7, 2004 -- ImageWare(R) Systems, Inc. (AMEX:IW), a leading global developer of identification, biometric, and digital imaging software solutions, today announced that the Department of Veterans Affairs (VA) will use IWS(TM) EPI(TM) Builder, the Company's secure credential software developer's kit (SDK), as part of the VA's enterprise-wide smart card initiative known as the Authentication and Authorization Infrastructure Project or AAIP.



IWS EPI Builder will be used by the VA to manage the card design, production and rendering aspects of the AAIP and will enable seamless integration with ActivCard's AIMS Identity Management System.

According to the March 17, 2004 statement of Robert McFarland posted on the House Committee on Veteran's Affairs Web site, this OMB-approved initiative is directly in line with emerging Federal policy where the VA's smart cards will be used to act as an official Federal ID card; provide a secure method to manage digital credentials that support authentication, digital signature, and encryption services; and, allow the VA to implement more cost-effective physical access controls.



"We are gratified that the VA will use ImageWare technology to increase physical and logical security and decrease costs," commented Jim Miller, ImageWare's chairman and CEO. "IWS EPI Builder is the industry's leading platform for the creation of highly-secure credentials. Its dynamic components enable developers to include all aspects of ID functionality into applications -- from capturing and managing images and biometric data to encoding magnetic stripes, bar codes and smart chips. IWS EPI Builder is an ideal tool for government agencies such as the VA and for system integrators who need to implement large scale, custom, secure credential solutions."

The IWS EPI Builder SDK enables users to develop custom identification solutions or incorporate sophisticated ID functionality into existing applications. EPI Builder is designed specifically for high-end secure credential applications including passports, ICAO-compliant travel documents, driver licenses, national IDs, voter registration systems and other secure documents. Its open architecture enables developers to easily incorporate any ID functionality into applications while responding to shifting market demands and customer requirements. Additional functionality within EPI Builder includes: -0- *T -- Support for International Civil Aviation Organization (ICAO) travel documents to include machine-readable bar codes in passports, emergency passports, visas and TD1/TD2 sized travel documents and comply with ICAO 9303 standards -- The ability to create, populate, print and encode AAMVA-compliant (American Association of Motor Vehicles Administration) driver licenses -- The ability to interchange biometrics and biometric devices without having to recode the entire application -- Customizable design capabilities -- Face finding tool that automatically locates a face within an image, and centers, crops and stores it to ensure image consistency *T

About ImageWare Systems, Inc.

ImageWare Systems, Inc. (AMEX:IW) is the leading global developer of digital imaging, identification and biometric software solutions for the corporate, government, law enforcement, professional photography, transportation, education and healthcare markets, among others. ImageWare's secure credential and biometric product lines are used to produce ID cards, driver licenses, passports, national medical health cards, national IDs and more. The Company's law enforcement and biometric product lines provide the public safety market with booking, investigative and identification solutions that can be accessed and shared via PC, Web and wireless platforms. ImageWare's professional digital imaging product line provides professional photographers with automated, in-studio and mobile solutions to facilitate the transition from film-based photography to digital imaging. Founded in 1987, ImageWare is headquartered in San Diego, with offices in Canada, Germany and Singapore. 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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