E.S.I. Environmental Sensors Inc.

E.S.I. Environmental Sensors Inc.

May 21, 2009 09:00 ET

ESI Announces $1 Million Private Placement

Share Exchange with Grafton Fund

VICTORIA, BRITISH COLUMBIA--(Marketwire - May 21, 2009) - E.S.I. Environmental Sensors Inc. (TSX VENTURE:ESV) today announced a share exchange transaction with Grafton Resource Investments Ltd. ("Grafton"), a Closed-End Fund managed by Newland Fund Management LLP of London, England.

ESI will issue to Grafton Fund 5,000,000 common shares at CAD$0.20 per share, representing a value of CAD$1,000,000 in exchange for 26,028 Ordinary Shares of Grafton at USD$38.42 per Fund Share. The common shares of ESI issued pursuant to the share exchange transaction will be subject to regulatory approvals and a four-month hold period. Following the completion of the share exchange, Grafton will own a total of 19.1% of ESI's issued and outstanding shares.

"ESI is pleased to attract additional institutional investors as shareholders of the company. The Grafton Fund's substantial investment in ESI is an illustration of the growing institutional investor confidence in ESI's soil moisture and oil industry technologies and the $11 billion in primary markets targeted by the company through the agriculture and golf & turf markets and the oil industry", said Bernard Beauchesne, ESI's Chief Financial Officer. "In late 2009 and subsequent years, ESI anticipates drawing upon the Grafton Fund shares as an additional source of working capital for the company."

The Grafton Fund is a Cayman Island-based Closed-End fund managed by Newland Fund Management LLP of London, England and was incorporated for the purpose of capital gains appreciation of diversified investments in the medium term. The Fund Managers have had past success with similar funds and a long track record in the investment industry. Newland Fund Management LLP plans to submit an application to list the Grafton Fund shares on the Irish Stock Exchange and to one or more additional exchanges in the near future, but there are no assurances that a listing on a public exchange will occur and therefore there can be no assurances of financial liquidity. For additional information about Newland Fund Management LLP and the Grafton Fund, please visit www.newlandfinancial.co.uk.

About ESI

ESI is a leading manufacturer of patented and proprietary solutions for managing the world's fresh water supply. Major market sectors include: Agriculture, Golf and Turf, Scientific Research, Civil Engineering and Crude Oil. ESI solutions have been successfully introduced into more than 40 countries to enable customers to optimize their operations by monitoring the presence and movement of water, managing irrigation systems, and monitoring the integrity of landfill covers. Most recently, the FloPoint™ instrument has been introduced to the Oil industry to measure the volumetric presence of water pumped during crude oil extraction. This provides operators with the information needed to manage, refine and optimize production. ESI differentiates itself by translating the best technology and science available into practical, easy to use solutions. Irrigation managers, Reservoir Engineers, and Scientists have adopted ESI's products for their accuracy, ease of use, repeatability, and ability to operate in challenging environments. ESI is publicly traded on the TSX Venture Exchange under the symbol "ESV". Further information about ESI may be obtained through the Company's website at www.esisensors.com.

The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of this release.

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