ImageWare Systems Receives Delisting Notice from AMEX

SAN DIEGO--(Business Wire)--ImageWare(R) Systems, Inc. (AMEX:IW), received notification from
the American Stock Exchange (AMEX) dated Dec. 14, 2007, indicating
that the Company is not in compliance with AMEX's Continued Listing
standards Sections 1003(a)(ii), 1003(a)(iii) and 1003(a)(iv) of the
AMEX Company Guide. AMEX intends to remove the company's common stock
from listing and registration on AMEX by filing a delisting
application with the Securities and Exchange Commission.

ImageWare plans to appeal AMEX's determination and will request an
oral hearing before an AMEX Listing Qualifications Panel. Once filed,
the appeal will ordinarily stay the delisting of the company's common
stock pending a hearing date and the decision of a Listing
Qualifications Panel. The time and place of such hearing will be
determined by AMEX and is expected to occur within 45 days after the
hearing is requested. There can be no assurance that the company's
request for continued listing will be granted. If a Listing
Qualifications Panel does not grant the relief sought by the company,
its common stock will be delisted from AMEX. It is expected that the
company's common stock would then be quoted on the Over-the-Counter
Bulletin Board (OTCBB).

The company was previously notified by AMEX that it was not in
compliance with Section 1003(a)(ii) of the AMEX Company Guide with
shareholders' equity of less than $4,000,000 and losses from
continuing operations and/or net losses in three out of its four most
recent fiscal years, and Section 1003(a)(iii) of the AMEX Company
Guide with shareholders' equity of less than $6,000,000 and losses
from continuing operations and/or net losses in its five most recent
fiscal years. ImageWare was also notified of its non-compliance with
Section 1003(a)(iv) of the AMEX Company Guide in that it has sustained
losses which are so substantial in relation to its overall operations
or its existing financial resources, or its financial condition has
become so impaired that it appears questionable, in the opinion of
AMEX, as to whether the company would be able to continue operations
and/or meet its obligations as they matured.

In June 2006, the company submitted a plan of compliance to AMEX.
In September 2006, AMEX notified the company it had accepted its plan
to regain compliance with the continued listing standards in the AMEX
Company Guide by the end of the plan period, which AMEX determined to
be November 30, 2007.

About ImageWare Systems, Inc.

ImageWare Systems, Inc. (AMEX:IW) is a leading developer of
identity management solutions, providing biometric, secure credential
and law enforcement 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. ImageWare is headquartered in
San Diego, with offices in Washington DC and Canada. For more
information visit www.iwsinc.com.

Safe Harbor Statement

This press release may contain forward-looking statements made
pursuant to the "safe harbor'' provisions of the Private Securities
Litigation Reform Act of 1995. Such statements include, without
limitation, statements made with respect to the company's continued
trading status on AMEX prior to the decision of a Listing
Qualifications Panel, the timing of the hearing before a Listing
Qualifications Panel, the company's ability to demonstrate to a
Listing Qualifications Panel that it can regain compliance with AMEX's
continued listing standards, or the company's ability to be quoted on
the Over-the-Counter Bulletin Board in the event it is delisted from
AMEX. Although the company believes the statements contained herein to
be accurate as of the date they were made, it can give no assurance
that such expectations will prove to be correct. The company
undertakes no obligation to update these forward-looking statements.

ImageWare Systems, Inc.
Wayne Wetherell
858-673-8600, ext. 138
or
Investor Relations Contact:
Lippert/Heilshorn & Associates
Christiane Pelz
415-433-3777
cpelz@lhai.com

Copyright Business Wire 2007