ESI Announces $750,000 Private Placement and Converts Loan Into $1.5 Million Convertible Debenture

E.S.I. Environmental Sensors Inc. ("ESI" or the "Company") (TSX VENTURE:ESV) is
pleased to announce a non-brokered private placement of up to 15,000,000 units
("Units") at $0.05 per Unit to raise gross proceeds of up to $750,000CAD. Each
Unit will consist of one common share and one common share purchase warrant (a
"Warrant"). Each Warrant will be exercisable into an additional common share at
$0.10 for a period of one year from the closing date. The Private Placement is
subject to TSX Venture Exchange ("Exchange") acceptance, and may be subject to
shareholder approval.


The proceeds from this financing will be used to hire new staff in senior
management and marketing, expand manufacturing to meet existing and anticipated
demand for ESI's moisture monitoring, oil water-cut monitoring and associated
wireless systems, and to further develop the next generation of products for the
oil industry. In addition, a portion of the proceeds will be used for general
working capital purposes.


Subject to Exchange approval, the Company will pay a finder's fee in connection
with the private placement. 


The Company is also pleased to announce that an agreement has been reached with
Avis Financial Corporation ("Avis Financial") to convert a current demand loan
on the Company's balance sheet into a convertible debenture. The total value of
the current debt owed to Avis Financial is $1.5 million. The new debenture will
be convertible into common shares at a price of $0.05 per share for a period of
one year from the closing date. In addition, the debenture will bear interest at
a rate of 12%. Interest is convertible into common shares at market price at the
time of conversion. Full conversion of this debenture, not including interest,
would result in the issuance of 30,000,000 common shares to Avis Financial; this
would likely result in the creation of a new control person and a change in
control of the Company. As such, this transaction is subject to shareholder
approval. The Company's management and directors are not aware of any current
ownership of the Company's common shares by Avis Financial. This transaction is
subject to Exchange approval. Avis Financial currently own $1.34 million in
outstanding ESI convertible debentures (convertible at a price of $0.35 per
common share). 


Any shareholder approval of the above transactions, if required, will be sought
at the Company's 2010 Annual General Meeting ("AGM"), to be held at the Union
Club of Victoria, located at 805 Gordon Avenue in Victoria, BC at 2:00 pm
Pacific Daylight Time on September 29, 2010.


The Company also announces the granting of 1,300,000 stock options to directors
and officers, and 520,000 options to employees and contractors under the
Company's stock option plan. The Company's current stock option plan is a
rolling 10% plan with approximately 2.1 million options available for issuance
under the plan. There are no options currently issued and outstanding. The
options being issued at this time will have an exercise price of $0.05 per
common share and will expire after three years. Vesting of the options will
occur immediately for directors and will occur over a two year period for
employees and consultants. The Company will be instituting a new fixed stock
option plan at its upcoming AGM that will authorize approximately 20% of the new
number of issued and outstanding common shares or 7.2 million options for
issuance under the plan (less any options issued in the interim). Shareholders
will be asked to vote on the new stock option plan at the upcoming AGM. Other
than the number of options authorized for issuance under the plan, the terms of
the new fixed plan are relatively unchanged from the terms of the current
rolling stock option plan previously approved by the Company's shareholders.


About Avis Financial Corporation

Avis Financial is an innovative, integrated business development engine that
assists small and medium-sized enterprises (SMEs) in realizing their full
potential. Involved at every step of the way, Avis Financial provides a truly
comprehensive package of services to its portfolio companies, who further
benefit from a high-profile brand, a major international network and extensive
business expertise. Avis Financial's services include capital and operational
restructuring, business development and placement preparation. To ensure that
its portfolio companies receive support at every level, Avis Financial works
with a large network of affiliates providing business and capital services.


About ESI

ESI is a leading manufacturer of patented and proprietary solutions for
environments where understanding the presence, movement, and/or amount of water
are important. Major market sectors include: Agriculture, Golf and Turf,
Scientific Research, Civil Engineering and Crude Oil. ESI solutions have been
successfully introduced into more than 40 countries to enable customers to
optimize their operations by monitoring the presence and movement of water,
managing irrigation systems, and monitoring the integrity of landfill covers.
Most recently, the FloPoint(TM) instrument has been introduced to the Oil
industry to measure the volumetric presence of water pumped during crude oil
extraction for characterization and optimization of the process. ESI
differentiates itself by translating the best technology and science available
into practical, easy to use solutions. Irrigation managers, Reservoir Engineers,
and Scientists have adopted ESI's products for their accuracy, ease of use,
repeatability, and ability to operate in challenging environments. ESI is
publicly traded on the TSX Venture Exchange under the symbol "ESV". Further
information about ESI may be obtained through the Company's website at
www.esisensors.com.
E.S.I. Environmental Sensors (TSXV:ESV)
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