1 OTCQB: IWSY

Roth Investment Conference

March 2017

OTCQB: IWSY

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Statements in this presentation that relate to ImageWare's future plans, objectives, expectations, performance, events and the like are "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995 and the Securities Exchange Act of 1934 (“1934 Act”). Future events, risks and uncertainties, individually or in the aggregate, could cause actual results to differ materially from those expressed or implied in these statements. Those factors could include the absence of available or sufficient capital to execute the Company’s business plan and changes in economic or other conditions that may change demand for the Company's products and services and other factors. This presentation is comprised of interrelated information that must be interpreted in the context of all of the information provided and care should be exercised not to consider portions of this presentation out of context. ImageWare does not intend to update these forward-looking statements prior to any announcement of quarterly or annual results. 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. Statements in this presentation should also be considered together with the discussion of risks and uncertainties set forth in ImageWare’s annual report on Form 10-K filed on March 15, 2016 and on Form 10-Q filed on November 14, 2016 with the Securities and Exchange Commission (“SEC”) and its other reports filed with the SEC under the 1934 Act. ImageWare uses paid services of investor relations organizations to promote the Company to the investment community. Investments in any company should be considered highly speculative and prior to acquisition, should be thoroughly researched.

The content of this presentation is © 2016 – 2017 ImageWare Systems, Inc.

Forward-Looking Statements

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The Need

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An identity is stolen every 3 seconds¹

Tax identity theft has increased by 700% in the last 3 years²

Over 80% of organizations are victims of fraud³

In 2016, identity fraud cost the U.S. $16 billion and affected 15 million people, up 16%⁴

The Need

Advances in Technology Make our Life Easier, but More Vulnerable Than Ever Before….

1) Digital Journal 2) IRS 3) Annual revenues over $1 billion. SANS Institute 2013, ITAC, 2012 4) Javelin Strategy & Research 2017 Identity Fraud Study -

https://www.javelinstrategy.com/press-release/identity-fraud-hits-record-high-154-million-us-victims-2016-16-percent-according-new

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T A R G E T E X P E R I A N

40M credit/debit cards stolen

15M people’s data exposed

S O N Y

Emails exposed, Sr. Management

ousted

E X C E L L A S B L U E C R O S S

Stolen identities, financial & clinical

records

76M households 7M small

businesses compromised

J P M O R G A N C H A S E

“It takes 20 years to build a reputation and five minutes to ruin

it.” – Warren Buffet

The Need

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67% of data breaches are the result of stolen

passwords

$118 per user, per year is total

cost of password resets

Genuinely secure

passwords are difficult to remember

413 BC: first password ever

used by the Greek army was stolen by their

enemy 2015 Verizon Data Breach Investigations Report https://www.infotech.com/research/quick-reductions-in-

help-desk-costs-with-password-reset

THE PROBLEM IS PASSWORDS They are unsecure, expensive and hard to use.

The Need T h e C h a l l e n g e o f U s i n g C o m p l e x P a s s w o r d s a n d V a r i o u s K i n d s o f T o k e n s i n M o b i l e U s e C a s e s i s D r i v i n g t h e Ad o p t i o n o f M o b i l e B i o m e t r i c Au t h e n t i c a t i o n

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The Answer

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Very difficult to counterfeit multiple biometrics

M-MB overcomes data input challenges versus a single biometric

IWS’ Biometric Engine® offers M-MB flexibility to foster positive consumer experience and provides massive scale and unlimited biometric choices

M-MB efficacy enables greater population penetration

M-MB has limitless applications: government, law enforcement, border security, travel, healthcare, commercial, financial & consumer/retail

The Answer

Multi-Modal Biometric (M-MB) Identification

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The Opportunity

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Biometrics is expected to be a $34 billion industry by 20201

65% of all mobile transactions will be biometrically authenticated by 20202

There has been a convergence of smart mobile devices, cloud adoption, & biometric acceptance

Our SaaS model is designed to generate recurring revenues based on usage & service contracts while offering customers pay as you go and ease of deployment

Partnerships with Fujitsu, SAP, Aruba Networks – a Hewlett Packard Enterprise Company, CA Technologies, Lockheed Martin, CDW, Verizon, & others helps us to aggressively pursue new customers in the market

Industry analysts have verified the substantial market for multi-modal biometrics and we have spent the past three years strategically positioning ourselves to capitalize on the coming wave of growth

The Opportunity

Rapidly Growing Industry

1) Acuity Market Intelligence, www.acuity-mi.com 2) Acuity Market Intelligence, www.prnewswire.com/acuity

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ImageWare is a pure play on large scale, multi-modal biometrics adoption

Only IWS has the patents & platform to affordably & easily manage massive amounts of data required for multiple modalities – All on a pay-as-you-go, scale-as-you-need basis

We are pioneers & an established innovator in biometrics for over 15 years, with a strong installed client-base such as:

U.S. Department of Veteran Affairs

LAX – Los Angeles World Airports

Arizona Department of Public Safety

Canadian TSA

Established companies, such as Fujitsu, Lockheed Martin, Aruba – a Hewlett Packard Enterprise Company, SAP, & CA Technologies, have selected IWS to be their biometric partner as this technology finds traction

Our government experience, delivering 24/7 best-of-breed, fully compliant biometric solutions, will drive the standards for commercial & consumer adoption

So Why ImageWare?

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U.S. Patents

• US7298873 • US7362884 • US7596246 • US7606396 • US7949156 • US7321920 • US7340503

International Patents

• China ZL 200680008481.4 • Australia AU 2005307863 • Australia AU 2006336252 • Europe EP1606963 • Canada CA2588078 • Canada CA2630711

IWS is the IP Leader in Multi-Modal Biometrics Early pioneer: first to file related patent (Nov. ’04) Most patents: 20 worldwide, 14 pending

Our Patents are Around: Interactive Messaging System Multimodal Biometric Platform Multimodal Biometric Analysis Biometric Remediation of Datasets Anonymous Biometric Verification Multimodal Biometric Database Searching Methods Anonymous Biometric Identification Anonymous Biometric Enrollment Systems and Methods for Biometric Data Management Using

Relational Database Management Systems (RDBMS)

Patent leadership provides valuable underlying assets, a sustainable competitive advantage, & barriers to entry

Leading Foundational IP in Multi-Modal Biometrics

• US7353258 • US8117287 • US8887259 • US9262613 • US9268904 • US9286528 • US9418214

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Multi-Modal Biometric Authentication via Mobile Devices, in the Cloud, or On-Premise

1. Identifies the person not the device

2. Multi-layer protection of individual user’s biometric data

3. Fast, accurate, and anonymous authentication

1. Operates at the speed of business

2. Scales to hundreds of millions of identities within seconds

3. Cloud-based matching, register once, use anywhere

1. Supports any kind of biometric, single or multiple

2. High-assurance multi-biometric fusion

3. Broad applicability for nearly any use case

Secure (Personal, Accurate,

Anonymous)

Scalable (Speed, Population,

Device)

Adaptable (Multi-Biometric, Fusion, In

Band and Out-of-Band Authentication)

We hold 20 patents world wide : http://iwsinc.com/resources/intellectual-property/

Not All Biometric Solutions Are Equal

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Smart Products for Enterprises & Consumers

Mobile application software providing out-of-band verification using a mobile device

Enterprise-ready, end-to-end, turnkey, multi-factor biometric, vendor agnostic solution

No upfront cost/Pay-as-you-go, Software as a Service solution

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Biometric authentication for all stakeholders in all circumstances, connected or disconnected

Adapts quickly to new biometric technologies; Installs in minutes, configure, manage, and use

Financed as OPEX rather than CAPEX. No upfront cost, Sold as a service

Frost & Sullivan 2017 New Product Innovation Award

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Verify Your

Identity

Take a selfie Speak a phrase Fingerprint Success

1. Request Access

2. Choose Authentication Method(s) on Mobile Device

Or

3. Results –Granted or Denied Access

Out-of-Band Authentication Request

Here’s How it Works

Sign In With GoVerifyID Airport Wi-Fi

Violet Le Violet.Le@domain.com

Access Granted!

Violet Le

ClearPass and ImageWare Workflow

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Our Unique Value Proposition

The Competition

Software technology platform focuses on data & data management

Multi-modal solutions allow virtually any hardware or any biometric algorithm, now or in the future

Open plug-n-play flexibility is “Future Proof” yet integrates into a scalable end-to-end solution with little or no coding

IP leader in multi-modal biometrics

Sold as a Service, pay-as-you-go, scale-as-you-need

Identity management driven by hardware-based or “Middleware Solutions”

Package hardware “Capture” devices with proprietary software

Protection = data enrolled in proprietary format

Closed-end systems

Difficult and expensive to replace

Each new change requires integration and additional costs

VS.

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Multi-modal biometric identity management is NOW moving from government to commercial & consumer markets

Society’s increasing mobility is a key driver Smart devices equipped with tools (i.e. cameras, voice

recognition, fingerprint ) can easily enroll multiple biometrics

Mobile security is absolute requirement Smart device is bridge from human identity to digital identity Provides third factor of authentication for cloud and mobile

computing (what you know, what you have and WHO YOU ARE)

Security & ease of use for Internet of Things

The Future of Multi-Modal Biometrics

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Foundational patents provide the sustainable competitive advantage

Increasing mobility has created the need for sensitive data and networks to be secured

Leverage successful government product suite towards commercial & consumer markets (i.e. mobile) & cloud security (i.e. Fujitsu, SAP, CDW, & CA Technologies)

Unpredictable government revenue model transforming to predictable, recurring revenues (license and/or transaction) as private sector traction occurs

Scalable software license model with +70% gross margins, evolving to mobile & cloud SaaS offerings

ImageWare Key Takeaways

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ImageWare Contact Information

ImageWare Systems, Inc. 10815 Rancho Bernardo Rd., Suite 310

San Diego, CA 92127 Tel (858) 673-8600

Company Contact Wayne Wetherell, CFO

Investor Relations Liolios Group, Inc.

Cody Slach Tel (949) 574-3860 IWSY@liolios.com

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Key Stats (OTCQB: IWSY)

Trading Data (@ March 7, 2017)

Stock Price $1.11

52 Week Low/High $0.95/$1.52

Avg. Daily Vol. (3 month) 71,041

Shares Outstanding 94.8M

Public Float, est. 52%

Institutional Holdings, est. 2%

Insider Holdings, est. 48%

Market Cap $105.2M

Enterprise Value $105.5M

Year Founded 1987

Number of Employees 67

Financial Highlights (@ September 30, 2016)

Total Revenue (ttm) $3.8M

Cash & Equivalents (mrq) $1.7M

Total Assets (mrq) $5.9M

Total Debt (mrq) $2.0M

Total Liabilities (mrq) $6.1M

Total Equity (mrq) $(0.2)M

Source: Capital IQ.