Volume 1, Issue 5

August 2004

NEWS FROM THE CHAIRMAN Volume 1, Issue 5 | August 2004

It is nearly impossible these days to pick up a newspaper or magazine and not notice at least one news item relating to efforts by government and private industry, here and abroad, that will provide a greater sense of safety and security in the post 9-11 world.

During his acceptance speech at the Republican National Convention, for example, President George W. Bush made it clear that the security of this nation was at the top of his list of priorities, promising “a safer world.” He told the delegates at the convention and the American people that “this moment in the life of our country will be remembered.” “Generations,” he said, “will know if we kept our faith and kept our word. Generations will know if we seized this moment and used it to build a future of safety and peace. The freedom of many, and the future security of our nation, now depend (sic) on us.”

Here at e-Smart Technologies, Inc., we could not agree more. We applaud and support the President’s commitment to ensuring that not only this generation, but those that follow, will awake each day to the sense of security this great nation enjoyed prior to the horrific attacks of September 11, 2001. The e-Smart team has long understood the necessity of securing our borders and protecting identities and has been diligently working to be a part of the solution the President is seeking by bringing our extraordinary technology to the forefront of this important debate as the most advanced total integrated system solution to secure our country and protect our citizens.

In August our e-Smart marketing team was hard at work in Asia and the Middle East, continuing negotiations in several countries that appear to be near ready to adopt our technologies. At the same time, our brilliant manufacturing coordination team continues to work diligently to deliver on contracts already signed. I am also very pleased to report that our legal and accounting teams have completed all filing obligations – current and historical – as agreed with the Securities and Exchange Commission (“SEC”). I hope and believe that this action will finally lead to a swift and positive resolution with the SEC. Furthermore, with our filings in order and up to date, we now are in the process of moving the company from the “Pink Sheets” to the OTC Bulletin Board. As many of you may know, this is the first step to creating a more orderly market for our securities. After this, in due course, we will apply for listing on NASDAQ or another exchange. I will keep you advised as this process goes forward.

I am very happy to report that Mr. Kirk Brewer has agreed to represent the company in Investor Relations and Financial PR. Mr. Brewer will serve us as consultant. He has been a managing director for Burson-Marsteller, where he has represented some of the firm’s largest clients, including Beatrice Foods, Co., 3M, Ameritech, Montgomery Ward and Sears, Roebuck and Co., just to name a few. He has also worked with a number of small and mid-cap companies, including five years as senior vice president, investor relations for renowned investor Sam Zell’s merchant bank Equity Group Investments and vice president of investor relations for Paging Network. Mr. Brewer has well over two decades experience in communications specializing in developing investor relations and corporate communications strategies. We are honored to have him as part of the e-Smart team and look forward to a long and successful relationship.

In my continuing effort to get the word out about e-Smart's amazing technology, on August 12th I had the great opportunity to be a guest on the nationally syndicated Gordon Liddy Show. Gordon, among other things, a former agent with the Federal Bureau of Investigation, grasped the importance of using such an advanced technology and, while a warm and gracious host, he didn’t shy away from asking the tough questions. We had a lot of fun and I believe these interviews are invaluable in letting the American people know how our technology will protect them and their privacy. If you missed the show, excerpts will be posted on this website in the very near future.

So, another month goes by in what already has been a very exciting and fast-paced year. The e-Smart team continues to work on your behalf and we feel sure that our technology - the Super Smart Card™ and the Super Smart Passport™ - is the solution to the security and safety the President, and all of us, seek. It is time to seize the moment!

©2006 e-Smart Technologies, Inc.