ESI Entertainment Systems Inc. to divest ESI Integrity Inc.

BURNABY, BC, September 5, 2008 --- ESI Entertainment Systems Inc. (“ESI”) (TSX:ESY) today announced that it has entered into a Letter of Intent for the disposition of its wholly owned subsidiary ESI Integrity Inc.

In order to allow management to focus primarily on its payment processing business, ESI has been seeking to divest its interest in ESI Integrity Inc. Furthermore, the management of ESI Integrity Inc. supports the divestiture as it seeks to capitalize on strategic growth opportunities in the provision of security, audit and risk management solutions to the regulated gaming industries.

Under terms of the Letter of Intent, ESI Integrity Inc. and all of its assets, contracts and resources will be sold for a consideration of USD$2 million. ESI Entertainment Systems Inc will use these funds to immediately reduce its debt obligations. It is anticipated that a formal Agreement of Purchase and Sale will be entered into within the next four weeks. Closing of the proposed transaction is anticipated to take place during October, 2008, will be subject to the terms of the formal Agreement, including due diligence, and will be subject to all relevant regulatory and other consents and approvals

Michael Meeks, President of ESI stated, “The divestiture of ESI Integrity will allow ESI to focus more tightly on the significant opportunities we have created for renewed growth via the unique Internet Banking payment service provided by our Citadel Commerce Corp subsidiary. We believe that this strategy is in the best interest of our shareholders, and management is working hard to make it happen.”

Alan Ahac, President of ESI Integrity stated that “Our strategic objective is to further develop our leadership in the provision of products and services for security, audit and risk management to the international regulated gaming industry over the next two to three years, and to diversify into other non-gaming markets in the longer term. ESI Integrity’s technology and existing customer base will allow the combined company to move more quickly towards this objective.”

About ESI Entertainment Systems Inc.
ESI Entertainment Systems Inc. (TSX: ESY) provides products and services to the international gaming and payment processing industries through its three principal subsidiaries, Citadel Commerce Corp., ESI Integrity Inc. and PlayLine Inc.

For further information please contact:
ESI Entertainment Systems Inc.
Tony Greening
Chief Executive Officer
Telephone: +1 (604) 299-6922
email: tgreening@esi.ca
Web: www.esi.ca