e-Smart Technologies, Inc. Responds to Information Subpoenas From Securities & Exchange...

e-Smart Technologies, Inc. Responds to Information Subpoenas From Securities &
Exchange Commission

NEW YORK, Dec. 31 /PRNewswire-FirstCall/ -- via COMTEX -- As discussed by
e-Smart Technologies, Inc. (Pink Sheets: ESMT); ("e-Smart" or the Company")
during its December 27, 2007 Telephonic Shareholder Conference Call, the
Securities and Exchange Commission (SEC) has initiated an inquiry and has
issued subpoenas to the Company for documents including those relating to
certain loans made to e-Smart from its parent company IVI Smart Technologies
Inc., ("IVI") and Intermarket Ventures, Inc. As in all such inquiries, the
SEC has confirmed that it is conducting a "non-public fact-finding inquiry"
and that its inquiry "does not mean that [the SEC] have a negative opinion of
any person, entity or security" or "that anyone has broken the law."
As confirmed by the Company's legal counsel during that telephonic conference,
"we received those requests for information, we've reviewed them and we're in
the process of complying with all requests for information that come from the
SEC."
The Company's legal counsel, Maranda Fritz, also provided an update
relating to other important legal issues affecting the Company including the
Company's pending litigation in the Northern District of California which
resulted from the actions taken by two convicted felons, Wayne Drizin and
Michael Gardiner, and Gardiner's company, ID Smart. Fritz advised that the
court issued an order prohibiting Drizin from any involvement in the biometric
smart card industry, and barring Gardiner from using any e-Smart technology.
The court further ordered that those defendants return to e-Smart any and all
property of the Company that they possessed. The Company is seeking a
permanent injunction to prevent any use in the future of e-Smart's technology
by Drizin and Gardiner and ID Smart.
The issuance of subpoenas by the SEC may also relate to further efforts by
Gardiner and the other defendants to damage the Company and its shareholders.
In November of 2007, Gardiner issued a public release stating that he had
written a letter to the SEC claiming that the Company should have but did not
publicly report their own -- Gardiner's and Drizin's -- wrongful conduct and
their attempted theft of the Company's property. Details of these actions by
Drizin and Gardiner were made public by the Company in a November 14, 2007
press release "e-Smart Technologies Responds to Press Release Issued by
IDsmart LLC," and is available on the Company's website
http://www.e-smart.com.
In response to the SEC's inquiry, Mary Grace, CEO of e-Smart said, "The
SEC is dedicated to the protection of the shareholders of public companies,
and as the protection of our shareholders is my utmost concern, I am grateful
that the SEC is looking into these issues. The actions of Gardiner and Drizin
did cause damage to our shareholders because the Company was forced to take
legal action to protect its intellectual property, and experienced delays in
production. That Gardiner then tried to use his own fraudulent conduct to
support his claims to the SEC, we believe, makes a mockery of the SEC and
constitutes another act of securities fraud, the same conduct for which he
already stands convicted. The Company will make available all information
requested by the SEC so they can fully review the actions of Wayne Drizin and
Michael Gardiner/ID Smart against our shareholders and our Company. I am
confident that, after the SEC looks at all matters relating to our Company,
they will take appropriate steps to address the repeated instances of wrongful
conduct by Drizin and Gardiner, and protect our Company and others from such
conduct in the future."
e-Smart Technologies, Inc., is the exclusive supplier of the Biometric
Verification Security(TM) (BVS2(TM)) system, the Super Smart Card(TM) system
technology and related system technologies for Asia, Africa and the US, which
e-Smart believes to be the world's first smartcard of its kind with an on-card
sensor and a full match on-card system and other unique technologies for
secure biometric ID verification. e-Smart's next generation technologies allow
governments, public and private institutions, healthcare providers and
insurers, companies large and small, to provide a superior level of
protection. The Super Smart Card(TM) system technology and BVS2(TM) security
system can secure countries from criminal and terrorist threats, stop ID and
payment fraud, along with identity theft in connection with physical and
logical access and financial transactions, including telephone, Internet
payment and other financial and data related transactions all while protecting
individual privacy.
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.com or contact Media Relations at 703-768-7477 or
mediarelations@e-smart.com
SOURCE e-Smart Technologies, Inc.

Media Relations of e-Smart Technologies, Inc., +1-703-768-7477,
mediarelations@e-smart.com