ESI Integrity Selected as the Technology Supplier for US National Pari-mutuel Wager Monitoring Center

VANCOUVER, BC, December 12 - ESI Entertainment Systems Inc. (TSX:ESY) today announced that its subsidiary, ESI Integrity Inc., has entered into an agreement with RCI Integrity Services Inc. (RCIIS) to supply its Integrity Continuous Monitoring System for the new RCIIS National Wagering Monitoring Center for horse and dog race wagering in the United States.  Created by the association of state racing regulators in the US, RCI Integrity Services Inc. will exclusively deploy ESI’s Integrity Monitoring System to independently monitor and audit the wagering activity on horse racing, dog racing and jai alai in the United States in near real-time.   Under the terms of the agreement, ESI will supply license to the Integrity System and shall provide various services relating to the installation, training, support and maintenance of the system.  The term of the agreement is ten (10) years.

RCIIS Compliance Officers will use ESI’s Integrity software to centrally monitor wagering activity at race tracks as well as at off-track-betting outlets, and will also monitor telephone and online wagering sources. The system will detect regulatory violations as well as suspicious or fraudulent transactions and alert the Compliance Officers, who will then notify the appropriate tracks, wagering operators and regulators to undertake a coordinated response.  Currently, ESI’s Integrity System monitors virtually all wagering on horse races in Canada, the State of Florida, for the New York Racing Association, and for most US totalizator systems operated by Scientific Games.

“RCI Integrity Services represents an innovative approach to providing a national oversight of wagering activity spanning multiple regulatory jurisdictions,” said Alan Ahac, President of ESI Integrity. “We are very pleased to be the RCI Integrity Services’ technology provider and we are confident that with our monitoring and auditing applications, RCIIS will be able to provide the highest levels of assurance in the integrity of wagering for race fans.” 

“Racing regulators have recognized ESI Integrity Inc. as the leading supplier of monitoring systems technology for the gaming industry, and we are happy to be able to work with ESI in establishing RCI Integrity Services”, noted Ed Martin, Acting General Manager for RCIIS and President and CEO of Racing Commissioners International.

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.

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.

About RCI Integrity Services Inc.

RCI Integrity Services Inc. is a not-for-profit services organization focused on providing services to ensure the integrity of wagering on horse racing, dog racing and jai alai in the United States.  RCIIS was formed as an initiative of the Association of Racing Commissioners International, an association of regulators of race wagering.

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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