ESI to Divest its ESI Integrity Inc Subsidiary

BURNABY, BC, Oct. 13 /CNW/ - ESI Entertainment Systems Inc. ("ESI" or the "Company") (CNSX:ESY) is pleased to announce that it has signed a Letter Agreement with Insight ID Inc of Mississauga, Ontario for the sale of its wholly owned subsidiary ESI Integrity Inc.

Under the terms of the Letter Agreement, Insight ID Inc., will acquire all of the issued and outstanding shares in the capital of ESI Integrity Inc. for the sum of US$ 2,250,000 on or before November 11th, 2009 . Anchor Securities Limited has represented Insight ID Inc. in connection with the transaction. Closing of the transaction is subject to all relevant regulatory and other consents and approvals as well as satisfaction or waiver of conditions contained in the Letter Agreement.

ESI Inc. Chief Executive Officer Tony Greening commented: "The acquisition by Insight ID will provide benefits and synergies for both companies that are expected to allow them to increase revenue and to access a wider range of industries."

About ESI Entertainment Systems Inc.

ESI Entertainment Systems Inc. provides transaction processing and monitoring products and services through its two principal subsidiaries, Citadel Commerce Corp. and ESI Integrity Inc.

About Insight ID Inc.

Insight ID Inc provides Identity Authentication services that enable businesses and governments located throughout the world to instantly authenticate any ID from virtually anyone at anytime with the world's first instantaneous, online, knowledge-based identity authentication system.

For further information: ESI Entertainment Systems Inc., Tony Greening, Chief Executive Officer, Tel: [phone] ext 298, email: [email protected], Web: www.esi.ca; Insight ID Inc, John Pedder, Chief Executive Officer, [phone] ext 22, [email protected], www.insightidcheck.com; Anchor Securities Limited, Martin D. Heppner, President, [phone], [email protected], www.anchorsecurities.com