ESI Closes Contracts valued at US $1.4 Million with INTRALOT for the Malaysian, Taiwanese and Idaho Government Lotteries

Burnaby, BC, September 5, 2006— ESI Entertainment Services Inc. (TSX:ESY) today announced that its subsidiary, ESI Integrity Inc., has entered into agreements with _INTRALOT S.A., a leading global supplier of integrated gaming and transaction processing systems to game organizations worldwide, to supply its industry-leading Integrity Independent Control System (ICS) to the Magnum 4D Lottery (Malaysia), the Public Welfare Lottery of Taiwan, and the Idaho State Lottery.

The Integrity license agreements plus related services are cumulatively valued at approximately US $1.4 million over contract terms of six to eight years. These agreements represent an important step in ESI Integrity continued strategic expansion into the regulated international gaming markets while also maintaining its strong presence in the US government lottery sector.

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 INTRALOT S.A. partnership and the implementation of the Integrity system for Malaysia and Taiwan expands ESI Integrity into the rapidly growing European and Asian markets.

“We are very excited about supporting INTRALOT with our industry-leading ICS solutions for their rapidly growing customer base,” said Michael Meeks, President of ESI Integrity. “The partnership endorses ESI Integrity as a global provider of real-time transactional monitoring and auditing solutions for regulated gaming operators.”

Constantinos Farris, General Technical Director of INTRALOT S.A. commented, “INTRALOT wanted to partner with an industry-leading technology provider that would be capable of providing the highest levels of assurance to our customers. ESI Integrity, with their expertise and proven track-record, easily fulfilled our objective of offering a best-of-breed partner.”

Under the terms of the agreement the ESI Integrity system will provide continuous monitoring of the lottery’s wagering transactions, providing an independent, real-time audit of the wagers and prize calculations. In addition, ESI Integrity will administer product release updates and supply 24/7 technical support to the lotteries.

About ESI Entertainment Systems Inc.
ESI Entertainment Systems Inc. is a public company traded on the Toronto Stock Exchange (TSX: ESY). Its wholly owned subsidiary, Citadel Commerce Corp., is recognized as a leading provider of secure and efficient payment processing services to the international online gaming industry.

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 servicing over 35 lotteries and pari-mutuel wagering sites, spanning North America, South America, Europe, Asia, and Africa.

About INTRALOT
INTRALOT, a public company listed on the Athens Stock Exchange, is a leading supplier of integrated gaming and transaction processing systems, innovative game content and value added services to state-licensed gaming organizations worldwide. Its broad portfolio of products & services, its know-how of Lottery, Betting & Video Lottery operations, its experience in sports games and its leading-edge technology give INTRALOT a competitive advantage, which contributes directly to customers’ efficiency, profitability and growth. INTRALOT’s footprint straddles five continents with 37 subsidiaries, 8 business offices, 3,000 people and revenues of
€ 523 million for 2005 and €700 million for 2006.

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.

ESI Entertainment Systems Inc.
Dan Parmar, C.A.
Chief Financial Officer
Telephone: +1 604 299 6922 ext 375
dparmar@esi.ca

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

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