Volume 1, Issue 6

October 2004

NEWS FROM THE CHAIRMAN Volume 1, Issue 6 | October 2004

In what has been described as the clearest claim of responsibility for the September 11 attacks, in a video tape released just days before the U.S. Presidential elections, Osama Bin Laden warned Americans of future 9-11-style attacks and insisted that "your security does not lie in the hands of Kerry, Bush or al-Qaeda. Your security is in your own hands."

Mistakenly attempting to school Americans in democracy, Bin Laden failed to grasp the resolve of the people and their leaders to rid the U.S. and the world of those who aim to do harm. The solution does lie in our hands and it is leaders in the U.S. and around the world who are embracing the newest and most advanced technologies to identify and root out would-be terrorists. e-Smart Technologies stands ready to provide the people with that security ¿ to protect Americans and the world from such cowardly threats.

During the last two months, the e-Smart team exhaustively has been working to get our revolutionary security systems, such as the BVS2» (Biometric Verification Security System»), featuring the Super Smart Card» and the Super Smart Passport», to lawmakers and world leaders searching for solutions to today's most pressing security issues.

Our extraordinarily talented marketing team continues to negotiate with representatives in the US, Asia, the Middle East and Africa and I'm very pleased to announce that e-Smart along with our partner Daewoo International Corporation has signed a "Cooperation Agreement" with the Republic of Uzbekistan with the intent of providing the nation's 26 million citizens with the BVS2» System and Super Smart Card» for use as an electronic ID card, e-passport, membership cards, electronic payment systems, insurance and healthcare card. The Cooperation Agreement, also requires that the parties enter into a detailed project agreement, and the finalization of a program of project financing, both of which are currently being worked on
On October 27th, I was again honored to be a featured speaker at the Asia IC Card Forum, AICF. This second meeting of the AICF was held in Singapore, one of the "lynch-pin" countries involved in the global prevention of terrorism. The AICF is an Asia/Pacific-wide initiative to promote integrated circuit card-based common platforms across member countries ¿ One Card One Asia - including Korea, Singapore, China, Japan, Thailand, Indonesia, Malaysia and eventually throughout all of Asia, a market making up more than a third of the world's population and more than a quarter of the world's GDP.

I was pleased to again have the opportunity to present our unique Super Smart Card» and Super Smart Passport» to the conference attendees and Standards Committee members, all of whom were invitees representing their respective countries. Other invited speakers included such distinguished government officials as Singapore's Minister of Home Affairs, Mr. Wong Kan Seng, Mr. Yu Chein Siang, Home Affairs, Mr. Dennis Quek, Singapore Immigration and Checkpoints Authority, Mr. Poh Young Peng, Civil Aviation Authority of Singapore, Mr. Han Ho-Hyeorn, Kepia, Korea, Mr. Brad Wing, U.S Department of Homeland Security, Mr. Philippe Melchior, French Passport Policy and other invited select providers of security technologies including, IBM, Phillips, EDS and Sun Microsystems.

Furthermore, I was quite gratified to learn that Mr. Wong Kan Seng, the Minister of Home Affairs in Singapore, was featured in news reports of the conference, testing one of the first newly rolled out manufactured e-Smart Super Smart Card» (news clip posted at e-Smart website).

As many of you already are aware, on October 12th the Securities and Exchange Commission, SEC, issued an Order in the administrative proceeding against the Company remanding the proceeding back to the Administrative Law Judge for "reconsideration of the law judge's sanctioning determination" (see website for background information). The SEC Order is encouraging news for the company and we remain committed to providing timely financial data to better serve our shareholders and the investing public.

Finally, in our continuing effort to provide a clear understanding of e-Smart's revolutionary technology to the people, on September 14th, I was very happy to be an invited guest on the nationally and internationally heard radio program, The Power Hour, with Joyce Riley and Dave von Kleist. The two-hour interview was as informative for me as it was to the show's audience. There are many concerns about new biometric technology, and rightfully so. Some biometric technologies not only violate individual privacy, but are subject to abuse that could lead to a devastating rise in identity fraud and theft. On the Power Hour many questions addressed these serious concerns, and, when given the facts regarding the differences between questionable types of biometric technologies and e-Smart's ¿ and when made aware of the security and protection e-Smart's advanced technology will provide ¿ as well as the protection of their privacy and civil liberties, the people seemed to appreciate the efforts e-Smart is making on their behalf (excerpts from that program will soon be available on our website).

The last few months have been busy and even as we move into the holiday season, the e-Smart team is still hard at work. We at e-Smart continue to work to bring our advanced technology to all the people of the world. Meanwhile, we are thankful for everyday that goes by without a terrorist attack in our Homeland and that of our friends around the world. We look forward to the not too distant future when, because of our Super Smart Card» and Super Smart Passport», safety and security literally will be in "our hands."

©2006 e-Smart Technologies, Inc.