ImageWare Systems Announces Completion of Sol Logic, Inc. Acquisition

- Technology Enables Real-Time Voice Recognition and Multiple
Language Translation; Agnostic Platform Complements Biometric Product
Portfolio -
SAN DIEGO--(Business Wire)--ImageWare(R) Systems, Inc. (AMEX:IW), a leading developer of
identity management solutions, acquired the assets of Sol Logic, Inc.,
a leader in real-time voice recognition and language translation
technology, for $3.2 million. The purchase price will be paid in
shares of restricted common stock, to be issued in two tranches over a
six-month period. Frank R. Mitchell, the CEO of Sol Logic, will join
ImageWare's management team.

ImageWare will integrate Sol Logic's technology into its biometric
platform which includes real-time voice recognition, multiple language
translation and voice analytics capabilities, as well as support for
multilingual chat, distributed speed for MeshNet and document
exploitation. Not only will it enable users to capture and manage
biometric identities using multiple biometrics and multiple hardware
platforms, but also provide language translation and voice recognition
capabilities whereby an English-speaking user can be understood in
numerous languages including Spanish, German, French, Korean, Arabic,
and many more. The company's intelligence, defense, public safety and
border control customers will now have the ability to deploy a truly
powerful and mobile, multi-biometrics identification solution.

"We are very excited about this acquisition which will strengthen
ImageWare's position as an innovator in the industry. Sol Logic's
unique technology will enable ImageWare to add real-time voice
recognition, multiple language translation and voice analytics
capabilities to our biometric offerings," said Jim Miller, ImageWare's
chairman and CEO. "In addition, Frank's experience and his proven
track record in developing reliable, combat-proven and field proven
technologies for military forces will be a great complement to our
executive team. His leadership skills and strategic planning will add
immediate value and additional insight into the biometric identity
management market.

"Furthermore, with this acquisition, we expect to regain AMEX
compliance. We plan to appeal AMEX's determination and will
immediately request an oral hearing before an AMEX Listing
Qualifications panel," Miller added. "The initiatives we have put in
place over the last year are each part of a strategic plan to create
long-term growth and sustainable value for our shareholders. These
initiatives include the advancement of our biometric product portfolio
and distribution channels; and new and improved relationships with the
top systems integrators such as Honeywell, SAIC, Unisys and GE
Security."

Mitchell, who will serve as a Vice President on ImageWare's
management team added, "As an expert in the biometric field, ImageWare
has built relationships with the government and large systems
integrators. As such, it can leverage its resources to market and
distribute this voice recognition and translation technology as a
stand alone product or expand its application by integrating it into
other products. We are excited to become part of ImageWare and the
opportunity to grow our market."

Mitchell founded Sol Logic Incorporated in 2001 and has served as
its president and chief technologist since its inception. From 1995 to
2001, he was chief architect and programs director within the Boeing
Companies Phantom Works Division and Integrated Defense Systems. In
this position he led both tactical and enterprise level integration,
developmental research, and programs for the DoD, NATO and commercial
venues. Prior to Boeing, from 1980 to 1995, Mitchell served in the
cryptologic and intelligence field in the US Navy, where he had
permanent and temporary land, sea and air assignments in Europe, the
Far East, the Middle East and CONUS. He is the recipient of numerous
medals and awards, including: the Defense Meritorious Service Medal;
Joint Service Commendation Medal; the Navy Commendation Medal; Joint
Service Achievement Medal (2nd Award); Navy Achievement Medal; two
Combat Action Ribbons; US Coast Guard Special Operations Ribbon; the
Humanitarian Service Medal; and the Armed Forces Expeditionary Medal.
Mitchell holds a BA in mathematics from the University of San Diego
and Masters in Mathematics from the University of California, Irvine.

About Sol Logic, Inc.

Sol Logic is an advanced technology integration and development
solutions provider focused on exploiting new and proven technologies
to produce critical and next-generation solutions that allow its
customers to perform tasks more efficiently in a global environment.
Sol Logic Incorporated is headquartered in Prescott, AZ, with offices
in Quantico, VA.

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 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. There are a number of important factors that could
cause actual results or events to differ materially from those
indicated by such forward looking statements, including general risks
associated with acquiring assets, the ability of the Company to
successfully integrate the Acquired Assets, the Company's ability to
retain Sol Logic's assumed contracts, as well as maintain
relationships with Sol Logic's partners, vendors and customers, risks
related to realizing anticipated synergies after the transaction, the
potential adverse effect of other economic, business, and/or
competitive factors on the Company, the Company's ability to retain
qualified personnel after the transaction, and competitive pressures,
including pricing and new product and service offerings. 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.

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

Copyright Business Wire 2007