E.S.I. Environmental Sensors Inc.

E.S.I. Environmental Sensors Inc.

August 21, 2007 19:16 ET

ESI Closes $3 Million Non-Brokered Private Placement

VICTORIA, BRITISH COLUMBIA--(Marketwire - Aug. 21, 2007) - E.S.I. Environmental Sensors Inc. ("ESI", the "Company") (TSX VENTURE:ESV) is pleased to announce the closing of a non-brokered private placement of 7,500,000 units ("Units") at $0.40 per Unit to raise gross proceeds of up to $3,000,000CAD. Each Unit will consist of one common share and one common share purchase warrant (a "Warrant"). Each Warrant will be exercisable for two years into an additional common share at $0.50. The Private Placement is subject to TSX Venture Exchange acceptance.

The Company will pay a cash commission of 8% of funds raised as a finder's fee in connection with the private placement. The proceeds of the private placement will be mainly used: to expand manufacturing meeting existing and anticipated orders and the remaining proceeds will be used for general working capital purposes.

All securities issued with respect to this private placement closing are subject to a four month hold period.

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 2007, 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.

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