E.S.I. Environmental Sensors Inc.

E.S.I. Environmental Sensors Inc.

March 14, 2007 20:18 ET

ESI Announces Increase to $1million in Private Placement

VICTORIA, BRITISH COLUMBIA--(CCNMatthews - March 14, 2007) - E.S.I. Environmental Sensors Inc. ("ESI") (TSX VENTURE:ESV) is pleased to announce that the non-brokered private placement previously announced on January 26, 2007 of a two year convertible debenture for gross proceeds of up to $500,500 has been fully subscribed. The Company plans to enter into a further placement of an additional $500,500, subject to exchange approval, under the same terms and conditions as the previously announced debenture.

The convertible debenture will be sold in units of $50 each and will bear interest at 12% per annum, calculated and payable quarterly. During the term of the debentures, the holders will have the right to convert the debentures, into the Company's common shares at a conversion price equal to $0.65.

ESI will pay a finders fee in connection with the non-Insiders advances under the private placement equal to 7% of the gross proceeds. The proceeds of the private placement will be used for sales and marketing, and general working capital purposes. The private placement is subject to approval of the TSX Venture Exchange.

ESI is also pleased to announce continued momentum and growth in agricultural markets. Through proactive customer education and a growing recognition of the value that ESI's soil moisture based information systems provide, ESI has begun to see success in several new high value agricultural markets with our GroPoint™ based solution.

One such success has been in the cranberry industry where KC Enterprises Inc. is the primary provider of remote irrigation control and frost protection solutions to that industry. Introduced to ESI by The University of Massachusetts in December 2006, KCE identified ESI as the partner of choice and GroPoint™ as the best soil moisture based solution for their industry. 95% of the industry is based in North America: in NJ, MA, WI, OR, WA, BC and QC, KC. ESI received the first order for 100 GroPoint™ systems in February from growers in Massachusetts. Additional market penetration is expected through ongoing presentations to grower's associations in both Quebec and Wisconsin.

The company also announces that subject to exchange approval, it has granted 500,000 stock options to employees, officers and directors of the company, exercisable for three years, at an exercise price of $0.65.

About ESI

ESI is a leading developer and manufacturer of patented and proprietary systems for industrial and environmental applications where understanding the presence and content of water is important. Major market sectors include: Agriculture, Golf and Turf, Scientific Research and Oil. ESI products have been successfully introduced into over 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 from producing oil wells for characterization and optimization. ESI differentiates itself by translating the best technology and science available into practical, easy to use solutions. Irrigation managers and scientists have adopted ESI's products for their accuracy, ease of use, repeatability, and ability to operate in challenging conditions. 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.

On behalf of the Board,

Blair Heffelfinger, President & CEO

E.S.I. Environmental Sensors Inc.

Material Copyright 2006, E.S.I. Environmental Sensors Inc. Reproduction in whole or in part in any form or medium without express written permission of E.S.I. Environmental Sensors Inc. is prohibited.

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

Contact Information