Press Release

Source:

e-Smart® Files Petition for Review With SEC

FRIDAY, MARCH 26, 2004 9:08 AM - WASHINGTON, Mar 26, 2004 /PRNewswire-FirstCall via COMTEX/ -- e-Smart® Technologies, Inc. (OTC Pink Sheets: ESMT; "e-Smart®" or the "Company") announced that it has already filed its Petition for Review with the Securities & Exchange Commission seeking reconsideration of an Initial Decision of March 4, 2004, in connection with an SEC administrative proceeding against e-Smart® for it's failure to file periodic reports with the SEC. Given the timely filing of the Petition for Review, the Initial Decision will not become effective and the matter will be reviewed by the Commission.

In the Initial Decision, the Administrative Law Judge questioned whether the company would file its audited financial statements on or before March 30, 2004. Rather than awaiting that scheduled filing date prior to the issuance of an initial decision, the Administrative Law Judge issued a decision in advance of the filing date which recommended revocation of the registration of the Company's common stock based on the judge's view that the Company would not file its 10K-SB.

During the pendency of the proceeding, e-Smart® had promised to and had completed and filed its quarterly reports for the periods ended June 30, 2003 and September 30, 2003, and had assured the SEC and the Administrative Law Judge that its 10K-SB, including audited financial statements, would be filed on or before March 30, 2004.

e-Smart®'s President and Chief Executive Officer, Mary Grace, in an early morning discussion reiterated the Company's unconditional commitment to full compliance with all reporting requirements and full disclosure to the investing public. Ms Grace went on to confirm that the company's 10K-SB is in the final stages of review and will absolutely be filed on or before its due date of March 30, 2004.

Because the Initial Decision is based on the Administrative Law Judge's assumption that the Form 10K-SB will not be filed, the Company believes that the filing of that report will cause the Commission to conclude that no action should be taken with respect to the Company's common stock registration.

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.