MONDAY, March 29, 2004, 9:08 am EDT -

Las Vegas, Nevada, March 29 /PRNewswire-FirstCall/ — e-Smart® Technologies, Inc. (OTC Pink Sheets: ESMT - News; "e-Smart®" or the "Company") is pleased to announce that it has entered into a "Cooperation Agreement" with two Chinese corporations, one principally owned by entities controlled by the Chinese Ministry of Information Industry ("MII") and another principally owned and controlled by Chinese persons involved in media and public relations in China.

e-Smart® is the exclusive supplier for Asia and the USA of the Biometric Verification Security System™ ("BVS2™) platform, featuring the Super Smart Card™, believed by e-Smart® to be the world's only commercially available smart card with an on-card fingerprint sensor and a full on-card system for biometric ID verification that has both ISO 7816 contact and ISO 1443 (B) wireless compatibility.

The MII was created by virtue of a reorganization that took place in March 1998 by merging the former Ministry of Post and Telecommunications, which oversaw network standards and access, and the Ministry of Electronics and Information, which oversaw computers and software (and by divesting the resulting ministry of responsibility for postal administration and the telecom trunk line network). MII is now described as "a super-agency overseeing telecommunications, multimedia, broadcasting, satellites, and the Internet."

Pursuant to the Cooperation Agreement, the parties will establish a Sino-foreign cooperative joint venture (the "Joint Venture") in Beijing, China. The purpose of the Joint Venture is to operate networks that allow for the nationwide roaming and operation in China of e-Smart®'s Super Smart Cards™, i.e., e-Smart®'s biometrically powered multi-application smart cards; to promote the system and technologies in the financial sector and to maximize the Super Smart Cards™ usage in as many fields as possible. MII shall use its resources and relationships with the relevant departments and agencies of the Chinese government to promote e-Smart®'s products and technologies in all relevant Chinese government agencies and industries.

The parties are currently applying for the necessary licenses, approvals and permits within China for the operation of the Joint Venture and the required export permission or exemption from the U.S. Preliminary indications from relevant agencies of both governments have been very positive and while there can be no assurances yet at this early stage, the Company anticipates both a timely and a positive result.

Mr. Zhuxinsheng, Managing Director, of the MII owned company, said: "The Leaders of the PeopleÕs Republic of China were probably the first in the world to envision such a nationwide system with its Golden Card Project plan, but the advanced technology was not available when the vision was first conceived. e-Smart®'s BVS2™ operating platform coupled with e-Smart®'s Super Smart Card™ is the first and only technology we have seen that can make that vision become a reality. We look forward to partnering with e-Smart® to make an important contribution to China."

Ms. Mary Grace, e-Smart®'s Chairman and CEO, went on to say, "We look forward to a close, long and mutually rewarding cooperation with our partners in China. We believe that together we can make a significant contribution to the PRC and the Chinese people by providing e-Smart®'s biometric system and multi-application Super Smart Card™ to insure both the identity verification necessary to protect society and to prevent ID theft and financially related crimes and to facilitate and enable one of the most advanced efficient e-Government systems in the world.

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.

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