CONTACT: e-Smart® Media Relations
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or
Kirk Brewer
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SEC ALJ Rules Out Sanction Against e-Smart®

Washington DC, February 7, 2005 — e-Smart® Technologies, Inc. (OTC Pink Sheets: ESMT; "e-Smart®" or the "Company") announced today that, in a regulatory action initiated in December 2002 by the Division of Enforcement of the Securities & Exchange Commission, the administrative law judge has denied the Division’s request for the imposition of a sanction against e-Smart®.

In a decision issued on February 3, 2005, the administrative law judge stated that the Company has “hired staff that has undertaken extensive compliance efforts to cure past reporting deficiencies and keep current with ongoing reporting requirements." The law judge further concluded that “based on the company’s recent infusion of working capital, signed business contracts, and diligent and expensive efforts to file past due reports, . . . I find the likelihood of future violations absent . . .” and denied the Division's request for the imposition of a sanction. The Division had proposed revoking the registration of e-Smart®’s common stock.

Both parties have twenty-one days to appeal this order.

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About e-Smart®
e-Smart® is the exclusive licensee in the USA and Asia of the Super Smart Card™, the Super Smart Passport™ and the Biometric Verification Security System™ (also known as the “BVS2”™). The Company seeks to be a leading provider of high technology security systems that can be used to combat fraud and terrorism throughout its licensed territories. e-Smart®’s systems and products enable government agencies and commercial enterprises to continuously and securely verify the identity of citizens, personnel, customers and any other persons seeking physical or logical access. e-Smart® Technologies offers what it believes to be the highest form of identity based and credential based security available with no profiling or erosion of civil rights.

SAFE HARBOR STATEMENT
Statements in this news release 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 Exchange Act of 1934, as amended. While 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 the management’s opinion. While 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.

For more information about e-Smart® Technologies, please visit
http://www.e-Smart®technologies.com.