News From the Chairman: Vol. I, Issue 2: May 1, 2004

As so many of you already are aware through our corporate and other press releases, much has happened since my last newsletter. The rest of the e-Smart team and I have had a very busy first quarter and, as a result, I am pleased to report that 2004 looks to be the very exciting and productive year that I predicted it would be. It is a pleasure for me to regularly bring you up to date on the progress of the Company as promised. I apologize that I missed the March and April updates because of my busy travel schedule, but we are accomplishing a great deal, and I plan to keep the news flowing on a monthly basis in the future.

I am pleased to report that the Company’s new accounting and legal team did an outstanding job of completing our 10-KSB for 2003, which contains audited financials for 2003 and 2002. Our legal team has filed a petition and submitted a brief to review the decision of the Administrative Law Judge in connection with our Administrative Proceeding before the SEC, which ordered the revocation of the registration of the Company’s Common Stock because we had not filed certain reports with the SEC. Although no assurances can be given, since we have now filed our 10-KSB and will file our 10-Q Q for the first quarter of 2004 in a few days, we are hopeful that we can resolve this matter successfully and promptly with the SEC.

On your behalf, the e-Smart Marketing Team and I have been dividing our time between meetings with foreign nations and focusing our efforts in Washington DC. In so doing, we have found that there is not only great interest in our technology domestically, but also unexpected and truly overwhelming interest from many foreign nations eager to find solutions to the growing burden of identity theft, financial fraud and, of course, how best to confront the threat of terrorism. Both domestically and abroad, many have expressed interest in utilizing e-Smart's technology as the solution to address these issues. Both China (through a Ministry of Information owned Company) and the Republic of Kyrgyzstan have already signed agreements with the Company. Kyrgyzstan’s agreement is in the implementation planning stage. Together with our international marketing and implementation partners, Daewoo International and Samsung SDS, the Company is in various stages of discussion with nearly a dozen governments around the world, and, in addition, with our own government, for which projects large US system integrators would be our implementation partners. We are very busy in Washington, making every effort to deliver our technology to the federal agencies responsible for the nation's safety and financial security. Please look forward to future newsletters for updates and developments.

During the last week in April, the e-Smart team was well represented at the Card Tech-SecureTech Trade Show in Washington, D.C., where we again demonstrated our Super Smart Card™ technology and introduced and demonstrated our revolutionary Super Smart Passport™ (see Chairman’s Newsletter Vol. I, Issue 1, February 15, 2004). "It was very gratifying and exciting," says Tamio Saito, our CTO who attended the show. Saito commented that "Government representatives and corporate leaders from around the world all understood that our technology is one of a kind and truly revolutionary." Experts at the show agreed. Currently we are negotiating to deliver this new passport technology to a number of countries. Morever, as a result of this trade show, we have been invited to participate in, or create, a number of pilot projects in the United States and abroad. I will tell you more about these projects in the future as details are finalized

We began as a little Company with a big technology. e-Smart is like the "Little Engine that Could." We’ve made it up a big, steep and difficult hill. We’ve been beset with overwhelming obstacles and hurdles, but we continue to move forward, and are on our way to the top. I’m so proud of the e-Smart team for their dedication and tireless efforts. Let us pray that we may help to make a safer more peaceful world for all.

ABOUT e-SMART TECHNOLOGIES, INC.
e-Smart Technologies seeks to be and is focused on becoming the leading provider of high technology security systems that can be used to combat fraud and terrorism. e-Smart products such as the BVS™ (Biometric Verification Security System™) or the BV-HDS™ (Biometric Verification Homeland Defense System™) working with the Super Smart Card™ subsystem enabling government agencies and commercial enterprises to continuously verify, certify and manage identification and access of citizens, personnel, customers and any other persons seeking physical or logical access. e-Smart Technologies offers what it believes, and experts agree, is the highest form of identity based and credential based security available without discriminating profiling or erosion of civil or human rights.

Note: Statements in this Newsletter that relate to future plans, financial results or projections, events or performance are forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended and Section 21E of the Securities Act of 1933, as amended. Although these statements are made to convey to the public the Company’s progress, business opportunities and growth prospects, readers are cautioned that such forward-looking statements represent management's opinion. Although management believes such representations to be true and accurate based on information available to the Company at this time, actual results may differ materially from those described.