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ImageWare® Systems Extends Global Reach into Japanese Market with TwoFive, Inc. Partnership

ImageWare Opens Tokyo Sales Office

TOKYO, JAPAN and SAN DIEGO, CA – July 18, 2018 – ImageWare® Systems, Inc. (OTCQB: IWSY), a leader in mobile and cloud-based multi-modal biometric identity management solutions announces a distribution and integration partnership with leading security solutions provider TwoFive, Inc., which includes an initial modest order.

TwoFive, Inc. develops end-to-end solutions for the Japanese service provider community as well as distributes messaging security solutions. Weak or stolen credentials are the leading cause for data breaches and information loss. TwoFive’s partnership with ImageWare brings GoVerifyID® to the service provider community and beyond to remove this risk from an ever changing and more complex security landscape.

ImageWare’s Senior Vice President Global Sales and Marketing, David Somerville, commented, “Our expanding commitment to the Japanese and Asia Pacific markets are evidenced by our TwoFive partnership and opening of the ImageWare office in the Marunouchi district Tokyo, and the appointment of Japan-based Vice President Sales for Asia Pacific, Stuart Folo.”

Nobuhiro Suemasa, CEO of TwoFive, Inc., added, “The strategy of many organizations in Japan and abroad is a reliance on the ongoing strength of a password to protect mission critical assets such as databases and applications. Continued breaches in enterprises of all sizes shows that the Japanese market continues to be exploited and the only way to secure these assets is by identifying the user at the time of authentication or transaction through multi-factor biometrics. We are excited to integrate, distribute and support the industry’s best of breed platform for multi-factor biometrics with ImageWare.”

About TwoFive, Inc.

TwoFive, Inc. is specialized in the security, design and development of large-scale messaging infrastructure at fixed line and mobile operators in Japan. The company was founded in 2014 by a dedicated number of messaging security experts who have deployed numerous platforms in Japan’s largest ISP’s, ASP, and mobile operators. TwoFive provides system design, construction, security technologies and implementation services as well as custom messaging software development. For more information about our company or partners, please visit http://www.twofive25.com/about.html .

About ImageWare® Systems, Inc.

ImageWare Systems, Inc. is a leading developer of mobile and cloud-based identity management solutions, providing patented biometric authentication solutions for the enterprise. Biometric technology uses unique physical characteristics to authenticate a person’s identity. The company delivers next generation biometrics as an interactive and scalable cloud-based solution. ImageWare brings together cloud and mobile technology to offer multi-factor authentication for smartphone users, for the enterprise, and across industries.

ImageWare’s products support multi-modal biometric authentication including, but not limited to, any individual use or combination of face, voice, fingerprint, iris, palm, and more. All the biometrics can be combined with or used as replacements for authentication and access control tools, including tokens, digital certificates, passwords, and PINS, to provide the ultimate level of assurance, accountability, and ease of use for corporate networks, web applications, mobile devices, and PC desktop environments.

ImageWare is headquartered in San Diego, California, with offices in Portland, Oregon, Ottawa, Ontario, and Mexico City, Mexico. To learn more about ImageWare, visit https://iwsinc.com/ and  follow us on TwitterLinkedInYouTube and Facebook.

Forward-Looking Statements Any statements contained in this document that are not historical facts are forward-looking statements as defined in the U.S. Private Securities Litigation Reform Act of 1995. Words such as “anticipate,” “believe,” “estimate,” “expect,” “forecast,” “intend,” “may,” “plan,” “project,” “predict,” “if,” “should” and “will” and similar expressions as they relate to ImageWare Systems, Inc. are intended to identify such forward-looking statements. ImageWare may from time to time update publicly announced projections, but it is not obligated to do so. Any projections of future results of operations should not be construed in any manner as a guarantee that such results will in fact occur. These projections are subject to change and could differ materially from final reported results. For a discussion of such risks and uncertainties, see “Risk Factors” in ImageWare’s Annual Report on Form 10-K for the fiscal year ended December 31, 2017 and its other reports filed with the Securities and Exchange Commission under the Securities Exchange Act of 1934, as amended. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the dates on which they are made.

Investor Relations Contact

Harvey Bibicoff, CEO Bibicoff + MacInnis, Inc.

818.379.8500 harvey@bibimac.com

TwoFive Media Contact

Tomoko Taniguchi

+81 3 5704 9948 tomoko@twofive25.com