SEC ALJ Rules Out Sanction Against e-Smart

SEC ALJ Rules Out Sanction Against e-Smart 


WASHINGTON, Feb. 7  /PRNewswire-FirstCall/ -- 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.

The full text of this decision is available on the Company's website at
http://www.e-smarttechnologies.com/

About e-Smart

e-Smart is the exclusive licensee in the USA and Asia of the Super Smart
Card(TM), the Super Smart Passport(TM) and the Biometric Verification Security
System(TM) (also known as the "BVS2"(TM)).  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. 

DATASOURCE: e-Smart Technologies, Inc.



CONTACT:  e-Smart Media Relations, [phone], or Kirk Brewer,

[phone]



Web site:  http://www.e-smarttechnologies.com/

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