ImageWare and NEC Form Strategic Partnership to Provide Enterprise-Wid

    Business Editors/High-Tech Writers

    SAN DIEGO--(BUSINESS WIRE)--April 5, 2005--ImageWare(R) Systems, Inc. (AMEX:IW), a global leader in identity management solutions, today announced that it has signed a Memorandum of Understanding (MOU) agreement with NEC Personal Products, Ltd, a wholly owned subsidiary of NEC Corporation (NASDAQ:NIPNY) (FTSE:6701q.l), to cooperatively co-develop integrated Trusted Platform Module (TPM) security solutions for the Japanese Enterprise market. ImageWare anticipates initial revenue of $1.8 million over the next three years.
    Under the terms of the agreement, both companies will work collaboratively to integrate ImageWare's authentication security technology into NEC's TPM and fingerprint sensor embedded computer product lines, providing added security such as password management by TPM, to enterprise networks and computing systems. ImageWare and NEC will undertake joint marketing initiatives in order to develop new business opportunities together through new and existing business relationships, distributors and systems integrators in Japan.
    "There is an increasing demand for security implementation in the enterprise computing system market," said Takashi Yoda, chief manager of NEC Business PC Division. "To meet these needs, we chose to provide our secure solution by combining NEC's TPM embedded PC and ImageWare's authentication security technology."
    "This agreement is another example of ImageWare's aggressive effort and dedication to developing further relationships with companies that share a common goal in offering best-of-class security solutions around the world, specifically in Asia, where there are tremendous opportunities for growth," said Jim Miller, ImageWare's chairman and CEO. "We look forward to working closely together with NEC, one of the most respected and well-established PC providers in Japan."
    ImageWare recently launched IWS(TM) Desktop Security, a comprehensive authentication management infrastructure specifically designed to provide enterprise networks with the most advanced authentication mechanisms including biometrics, RFID technology, USB flash memory modules, Trusted Platform Module (TPM), and smart cards.
    IWS Desktop Security enables organizations to maintain a simplified, yet secure method of seamlessly integrating various security devices within a centralized authentication platform. The integrated device interface also offers a universal authentication management service towards various types of network framework layers including, LAN, WAN, VPN, VLAN, 802.1x wireless, as well as network servers such as MS Active Directory, and Citrix MetaFrame, upholding the integrity of the network security. Utilizing the platform, organizations are able to replace passwords, strengthen user authentication and condense existing authentication technologies and oversee authentication policies for the entire network environment.

    About NEC Personal Products

    NEC Personal Products, Ltd. (NECP) is the largest personal computer vendor in Japan. The company provides hardware platforms to both home/businesscustomers as part of NEC Group. NECP takes full advantages of its integrated competencies in product planning, development, manufacturing, sales/marketing and service/support. NECP is also highly valued by customers due to its state-of-the-art technologies, environmentally friendly materials, and high standard of service/support. NECP is a wholly owned subsidiary of NEC Corporation. More information is available at: http://www.necp.co.jp/company/index_e.html.

    About NEC Corporation

    NEC Corporation (NASDAQ:NIPNY) (FTSE:6701q.l) is one of the world's leading providers of Internet, broadband network and enterprise business solutions dedicated to meeting the specialized needs of its diverse and global base of customers. Ranked as one of the world's top patent-producing companies, NEC delivers tailored solutions in the key fields of computer, networking and electron devices, by integrating its technical strengths in IT and Networks, and by providing advanced semiconductor solutions through NEC Electronics Corporation. The NEC Group employs more than 140,000 people worldwide and had net sales of 4,906 billion Yen (approx. $47 billion) in the fiscal year ended March 2004. For additional information, please visit the NEC home page at: http://www.nec.com.

    About ImageWare Systems, Inc.

    ImageWare Systems, Inc. (AMEX:IW) is a global leader in identity 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'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. 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.

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CONTACT: ImageWare Systems, Inc. Joyce Chang-Watts, 858-673-8600 Ext. 133 jchang@iwsinc.com

KEYWORD: CALIFORNIA JAPAN INTERNATIONAL ASIA PACIFIC INDUSTRY KEYWORD: HARDWARE LEGAL/LAW GOVERNMENT SOFTWARE PRODUCT MARKETING AGREEMENTS SOURCE: ImageWare Systems, Inc.

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