ESI Integrity Enters into Agreement with INTRALOT to Supply Independent Verification System to the South African National Lottery

VANCOUVER, BC, January 9, 2007  - ESI Entertainment Systems Inc. (TSX:ESY) today announced that its subsidiary, ESI Integrity Inc., has entered into an agreement 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 Verification System (IVS) for the South Africa National Lottery.

The Integrity license agreement plus related services are cumulatively valued at approximately US $600,000 over a contract term of seven years.  The South African agreement validates ESI Integrity’s continued strategic expansion into the regulated international gaming markets while also maintaining its strong presence in the US government lottery sector.

With 45 Integrity licenses deployed in North America, South America, Europe, Asia, and Africa, ESI systems monitor more than US $20 billion in annual wagering revenues for lottery and pari-mutuel organizations. The current operator for South Africa’s National Lottery has been utilizing the Integrity system since 2000 to monitor the Lottery’s games. The conversion to INTRALOT’s gaming system is scheduled for April 1st, 2007.

“We are very excited to be able to continue to provide our industry-leading IVS solution for South Africa’s National Lottery,” said Alan Ahac, President of ESI Integrity. “This agreement further 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, “We are very pleased to cooperate once again with ESI. We believe that by providing the South African Lottery with ESI’s Integrity Verification System, we ensure the transactions with all the security and transparency needed”.

Under the terms of the agreement the ESI Integrity system will provide continuous transaction monitoring of the Lottery’s On-line, Instants, and Sports Betting games. Integrity will capture, process, and record all of the Lottery’s transactional activity offering independent and real-time visibility to data such as wagers, cancels, winner selection, and prize payouts.

About ESI Entertainment Systems Inc.

ESI Entertainment Systems Inc. is a public company traded on the Toronto Stock Exchange (TSX: ESY).  Its subsidiary companies are recognized as leading providers of secure and efficient payment processing, monitoring and entertainment services to the gaming industries.

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 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, 3,600 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.


For More Information contact:
Alan Ahac
President, ESI Integrity Inc.
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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