SAN DIEGO, CA--(Marketwire - Aug 14, 2012) - ImageWare Systems, Inc. (OTCQB: IWSY) (PINKSHEETS: IWSY), a leader in multimodal biometric security solutions, provided a corporate update today to highlight the company's progress over the past three months.
Key Milestones and Events
- Released version 2.0 of flagship Biometric Engine (BE)
- Selected as the exclusive provider of biometric identity management by a prime contractor responsible for the implementation of cargo scanning security at seaports in the Republic of Ecuador
- Acquired four U.S. patents related to wireless technology from VOCEL
- Filed applications for three new patents covering anonymous biometric identification which addresses consumer privacy concerns
- Neal Goldman, the company's largest shareholder and president of Goldman Capital Management, appointed to ImageWare's board of directors
Progress Overview and 2012 Outlook
Since ImageWare's last corporate update in May, the company has achieved multiple milestones in product and corporate development, as well as made key additions to its market-leading IP portfolio.
On May 15, ImageWare finalized and released version 2.0 of its flagship Biometric Engine, an evolutionary leap in physical security identification for airports, seaports and other critical points-of-access. BE 2.0 sustains superior integration with existing identity management solutions and enterprise service bus technologies, and is the only patented agnostic, open-architecture biometric recognition software solution that works with virtually all existing security hardware, software and algorithms.
"Since the release of BE 2.0, we have been gaining traction in the commercial and consumer markets, two areas we have been heavily targeting," said Jim Miller, ImageWare Systems chairman and CEO. "BE 2.0 is now being evaluated in test installations by four major integrators and two major commercial entities. We are also engaged in ongoing discussions with several additional integrators and commercial entities, with which we anticipate announcing partnerships or licensing agreements in the second half of 2012."
The U.S. SAFE Port Act, which requires foreign shippers by 2013 to not only secure cargo being shipped to the U.S. but also securitize the identity of individuals loading their contents, continues to be a significant growth opportunity for ImageWare. In fact, several foreign governments are mandating the private sector to finance these security enhancements in order to expedite the implementation process. This includes the Republic of Ecuador, one of the largest exporters to the U.S.
In June, ImageWare was selected as the exclusive provider of biometric identity management for a prime contractor responsible for the implementation of cargo scanning security at the Republic of Ecuador's major seaports. The full value of the contract cannot be immediately determined since it will be partially based on the eventual number of credentials issued during the seven year prime contract. However, it is expected to exceed $3 million.
The initial deployment of the company's biometric identity solution in Ecuador is planned to begin during the fourth quarter of 2012 at the Port of Guayaquil, the main seaport that handles a majority of Ecuador's imports and exports. The Ecuador award follows a similar contract ImageWare received earlier this year from the Los Angeles World Airports, operators of LAX and two other regional airports.
At the end of June, ImageWare acquired four patents related to wireless technology from VOCEL, a developer of mobile interactive messaging platforms for operators and communities. These patents -- combined with ImageWare's existing foundational patents in the areas of biometric identification, verification, enrollment and fusion -- provide a unique and protected foundation on which to build interactive mobile applications that are secured using biometrics. Securing these patents is expected to strengthen and accelerate ImageWare's entry into the mobile transaction marketplace by providing a method for exchanging content-rich interactive messages via wireless devices.
Additionally, the company recently filed three patent applications surrounding new "Anonymous Matching" technology which will allow biometric matching for identity verification, while protecting the privacy of an individual. The company believes that such technology will be critical to providing biometric management solutions to the consumer market where privacy protection has been an issue and barrier to biometric adoption.
"We continue to make significant progress in developing biometric security for both mobile devices and cloud computing -- two areas that represent the future of our industry," continued Miller. "Our patented BE 2.0, supplemented by the recent IP acquisitions, has positioned us to enter the mobile transaction marketplace for healthcare, law enforcement, banking and retail. Our unique technology clearly has the potential to provide us strong, steady revenue growth, along with better forward-looking visibility."
The company recently announced the addition of its largest shareholder, Neal Goldman, to its board of directors. Goldman comes to ImageWare as the president and director of Goldman Capital Management, an employee-owned investment advisory he founded in 1985. Goldman is a member or the CFA institute and serves as a member of the board of directors and compensation committee for Blyth, a New York Stock Exchange-listed company.
"Neal's extensive knowledge of finance and the capital markets, along with his proven leadership abilities, are all highly complementary to our board and the direction of the company," noted Miller. "Moreover, as our largest shareholder, he has demonstrated his confidence in ImageWare and the passion that we all share for our unique technology."
The appointment of Goldman follows the addition of John Cronin, managing director and Chairman of ipCG, the largest intellectual property strategy consulting team in the world.
"Neal and John have joined us during a pivotal time in the company's development, and will help lead the way to our next stage of growth and development," noted Miller. "In the second half of 2012, we will continue to focus on expanding into non-government sectors, including commercial, consumer and healthcare -- areas where our efforts are just beginning to take hold. BE 2.0 is testing well in several pilot implementations, and our investments in new wireless patents and talent have created a strong foundation to address our anticipated growth."
About ImageWare Systems, Inc.
ImageWare Systems, Inc. (OTCQB: IWSY) is a leading developer of identity management solutions, providing biometric, secure credential and law enforcement technologies. Scalable for worldwide deployment, ImageWare'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's 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, CA, with offices in Portland, Oregon, Washington, D.C., and Ottawa, Ontario. For more information on ImageWare Systems, Inc., visit www.iwsinc.com.
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. ("ImageWare") are intended to identify such forward-looking statements. ImageWare may from time to time update these 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, 2011, its quarterly reports on Form 10-Q for the quarter ended March 31, 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.