ImageWare Forms Strategic Alliance With Sagem S.A., A Global Force in Law Enforcement and Security

Agreement Significantly Expands ImageWare's International Presence


SAN DIEGO, July 31, 2001 (PRIMEZONE) -- ImageWare Systems, Inc. (AMEX:IW) said today that it entered into a Value Added Re-seller (VAR) agreement with Sagem S.A. to distribute ImageWare's C.R.I.M.E.S.(r) software systems.

Sagem is a French conglomerate with annual revenues in excess of $3.5 billion and a worldwide leader in providing automated fingerprint identification systems (AFIS) to law enforcement and civil agencies. C.R.I.M.E.S. is a suite of modular software products used by law enforcement agencies to aid in the investigation of crime, store digital images, and manage criminal history records.

The two-year agreement provides Sagem with non-exclusive rights to distribute C.R.I.M.E.S. worldwide, except in the United States and Canada. Sagem will purchase the software and resell the products to existing and potential customers.

"This agreement is extremely exciting for two reasons," said Jim Miller, ImageWare chairman and chief executive officer. "First, we believe it further validates the seriousness with which the law enforcement and technology industries view our leading-edge solutions, and second, it provides ImageWare with a major opportunity to participate in larger contract awards. Sagem has an outstanding track record of successfully marketing innovative law enforcement and security products. We have worked with Sagem before and are privileged to have an opportunity to once again join forces with one of the world's leading technology companies."

About Sagem SA:

Sagem is a high-technology company based in Paris. The company is a market leader in the field of fingerprint biometrics, the second-largest French company in the field of telecommunications, and the third-largest European company in electronics for defense and security. Sagem maintains a presence in more than 20 countries.

About ImageWare Systems:

ImageWare Systems, Inc. develops and markets software used to create and manage databases of digital images and accompanying text records. Through its ID Group, ImageWare creates software products that allow customers to create secure and smart digital identification documents. Through its C.R.I.M.E.S.(r) product line, ImageWare empowers its customers to quickly capture, archive, search, retrieve, and share digital photographs and criminal history records on a standalone, networked or Web-based platform.


            

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