ESI Integrity Awarded ICS Contract with the Virginia Lottery  

VANCOUVER, BC, December 12, 2006 - ESI Entertainment Systems Inc. (TSX:ESY) today announced that its subsidiary, ESI Integrity Inc. has been awarded the contract to supply its ICS solution to the Virginia Lottery. Under the terms of the agreement, ESI will supply license to its industry-leading Integrity Internal Control System and shall provide various services relating to the installation, training, support and maintenance of the system.  The term of the agreement is until September 2014, with the lottery having the option of extensions of up to three (3) years. The contract award was the result of a competitive tender process by the Lottery.

“Our Request for Proposal (RFP) drew a number of very high quality proposals,” noted Virginia Lottery Executive Director Sheila Hill-Christian.  “In the end, we determined that the submission from ESI Integrity Inc. provided the best solution and value to the Lottery.”

“Being selected by the Virginia Lottery is a notable milestone for our company and our technology,” said Alan Ahac, President of ESI Integrity. “The selection process was demanding as the Lottery has extensive knowledge and experience in these types of systems.   We are very proud to be chosen by the Lottery.”

The agreement is also notable in that the Lottery will undertake a trial of the new Integrity Anti-Fraud module.  The new Anti-Fraud capability is based on proven AI technology for transactional pattern analysis, and automatic rules detection and generation. This capability has evolved from successful projects in stock trade monitoring and online technical support applications, and is well-suited for transactional pattern analysis and adaptive learning applications. These characteristics are central to the ability to monitor and detect many types of fraud, including sophisticated money laundering schemes. The integration of this functionality extends the range of potential fraud conditions that can be monitored by the ESI Integrity System, offering a premium risk reduction capability for the gaming industry.  The Integrity Anti-Fraud module was developed in partnership with Aprecia, Inc. of Stamford, Connecticut.

Currently, Integrity Independent Monitoring solutions monitor billions of dollars in annual wagering revenues for lottery and pari-mutuel organizations in North America, South America, Europe, Asia, and Africa. The Virginia Lottery represents the company’s 45th system license and the 19th Lottery customer. The Integrity system will provide Lottery officials with real-time transaction compliance monitoring and independent calculations and balancing of critical events such as winning payout amounts.

About ESI Integrity Inc.

ESI Integrity Inc. is the leading supplier of independent software for Security and Risk Management in gaming. The ESI Integrity Continuous Monitoring System provides independent real-time monitoring of lottery and pari-mutuel gaming – auditing billions of dollars of gaming world-wide every year. ESI Integrity is currently licensed at over 40 lotteries and pari-mutuel wagering sites, spanning North America, South America, Europe, Asia, and Africa.

Forward- looking Statements

This news release contains forward-looking statements concerning ESI Entertainment Systems Inc, which statements can be identified by the use of forward-looking terminology such as “expect”, “proposed”, “may”, “plan”, “intend”, “will”, “would” or the negative thereof or any other variations thereon or comparable terminology referring to future events or results.  Forward-looking statements are statements about the future and are inherently uncertain, and the actual events or results could be materially different than those anticipated in those forward-looking statements as a result of numerous factors discussed more fully in the Company’s Final Prospectus dated March 22, 2006, Annual Information Form and elsewhere.  These risks include risks related to revenue growth, operating results, industry growth, changes in regulation and legislation, products, technology, financing, competition, personnel and other factors affecting the Company and its business, any of which could cause actual events or results to vary materially from ESI’s anticipated future results.  Forward-looking statements are based on beliefs, opinions and expectations of ESI’s management at the time they are made, and ESI does not assume any obligation to update its forward-looking statements if those beliefs, opinions or expectations, or other circumstances should change.  The Toronto Stock Exchange does not accept responsibility for this press release.

For More Information contact:
ESI Integrity Inc.
Alan Ahac, President
604-299-9530 ext 302
aahac@esiintegrity.com

Investor Relations :
David Feick.
The Equicom Group
+1 403 538 4787
dfeick@equicomgroup.com

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