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e-Smart® Receives License Approvals From Chinese Authorities Announced Joint Venture Moves Forward

WASHINGTON, May 10, 2005 /PRNewswire-FirstCall via COMTEX/ — e-Smart® Technologies, Inc., (Pink Sheets: ESMT) ("e-Smart®" or the "Company") is pleased to announce that the necessary licenses have been approved in China for the announced joint venture between e-Smart® and Guoxin Wel Telecom, a Chinese corporation principally owned by entities controlled by the Chinese Ministry of Information Industry (MII).

Pursuant to the March 2004 announced Cooperation Agreement the Sino-foreign cooperative joint venture in Beijing, China is established for the purpose of supplying the Biometric Verification System™ ("BVS2")™ featuring the Super Smart Card™ in order to operate a value-added network or networks that allow for the nationwide roaming and operation of e-Smart®'s biometrically powered multi-application, secure ID & payment smart cards in China, promote the system and technologies in the government and financial sector and maximize its usage in as many fields as possible, including healthcare, banking, immigration and personal identity protection to name a few.

Guoxin Wel TeleCom was established in 1993 under the guidance of the Ministry of Information Industry (MII) as part of the development of the Chinese information industry. Guoxin Wel TeleCom keeps pace with the rapidly developing information industry and, with its expert support system Guoxin Wel TeleCom has achieved an excellent reputation in the area of Natural Language Verification and data storage and is a leader in providing advanced products and technology into the Chinese information industry.

Mr. ZhuXinSheng, General Manager of Guoxin Wel TeleCom said, "we have long believed in the benefits of e-Smart®'s advanced biometric technology and, now, with the licenses approved we are eager to implement this extraordinary system. With the ever-increasing applications of the Super Smart Card™ and the BVS2™ operating platform we are about to deliver a nationwide system that until now was just a vision."

In response to Mr. ZhuXinSheng's kind and encouraging words, Mary Grace, President and CEO of e-Smart® said, "the approval of the licenses is exciting news for us and we are just as eager to begin providing our system to the people of China, giving them piece of mind over identity theft and fraud and financial crimes. This is a great day for both e-Smart® and Guoxin Wel TeleCom and I believe the beginning of a long and successful relationship."

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.