1- ARTICLE REVIEW
"National Geographic" Article Review.....Earth's Fresh WaterUnder Pressure…… ESI Environmental ENV-TSXV
"National Geographic", in it's Sept. 16th edition, gives a great overview of freshwater issues and they say "among the environmental spectres confronting humanity in the 21st century - global warming, the destruction of the rainforests, over-fishing the oceans - a shortage of fresh water is at the top of the list, particularly in the developing world." A World Bank expert calls it the "grim arithmetic of water". Recently, the US stated that 2.7 billion people would face severe water shortages by 2025 if consumption continues at current rates.

The article's author went on a two - month trip to Africa, India and Spain, and met with individual organizations and businesses that are trying to solve water's dismal arithmetic. Some of the examples in the article were reviving ancient techniques such as rainwater harvesting and some were twenty-first century solutions. All solutions emphasized the need to "obtain maximum efficiency from every drop of water." Conservation is a necessity as a fraction of one percent of the earth's water is available for drinking, irrigation and industrial use. All over the globe, municipalities and farmers are pumping water out of the aquifers faster than it can be replenished.

In the article's main example of water, how it is used and how it is wasted, two facts come out; specifically that 10% of water use is for household use and 70% for agricultural use. Of the 70%, one half of that water is wasted due to evaporation or runoff. The article states: "Drip irrigation, uses 30 to 70 percent less water than traditional methods and increases crop yield to boot." This technology was first developed in the 1960's but, even now, it is used on only one percent of irrigated land.

ESI Environmental Sensors of Victoria, British Columbia, designs and manufactures world-class sensors and wireless systems for water management. The first products, Moisture.Point and Gro.Point, have already been sold to clients in over 40 countries. Gail Gabel is the President and CEO of ESI; she was past Chair of the BC Premier's Advisory Council on Science and Technology and was previously Vice-Chair of the Science Council of B.C.

During the past year, ESI signed an exclusive distribution agreement with Netafim USA. Netafim is the world leader in drip irrigation products. Internationally Netafim has sales of US $220 million, with it's fastest growing market sector being in North America where, in California alone, 25% of the world's mechanized (spray) irrigation is located, and is a target for several ESI products. Netafim has 40 sales staff and a network of approximately 400 dealers located throughout the USA alone. In addition, Netafim has a comprehensive programme well underway to train its sales team throughout North America, in marketing ESI's Gro.Point TM and Intelligent Irrigation TM systems.

ESI's Gro.Point Sensors and Intelligent Irrigation software, will provide Netafim with a major edge over any competition, and take Netafim into high tech control and wireless communication for water management. Savings for users are in water and electricity and at the same time provide growers with a greater yield and significantly enhanced harvest quality. ESI has also begun working with several US utility companies who are offering a cash rebate for agricultural clients who use management systems to save water and power.

A fully integrated Gro.Point-based Intelligent Irrigation System pays for itself in a year or less, depending on the crop. Systems are modular. Average system sales are already reaching $30,000 to $50,000 each. Systems have already been sold for water management and irrigation management applications in vineyards, vegetables, tree fruits such as avocados and citrus, for high value nut crops such as pecans, hops and for tree farms.

The "National Geographic" article describes the success of the Kallie Schoeman farm in South Africa. The Schoeman farm has 500,000 citrus trees that produce 175 million oranges and lemons for export to 32 countries. This family have been innovators in irrigation as water becomes scarcer and more expensive. In the eighties, the family used more efficient sprinklers but they have been "readily replacing these with "super-efficient" drip irrigation which give the trees exactly what they need every day" Mr. Schoeman said, by parcelling small amounts of water to each tree. As Schoeman has used ever-more efficient irrigation systems, the farm has quadrupled the production of fruit per acre while actually using one third of the water.

ESI's various moisture probes are able to relay soil moisture data, via solar-powered wireless communication, to a farm or vineyard's computers. Based on the information sent to the farm's computers, and the time of year, an irrigation manager can adjust the flow rate of water, mixed with fertilizer. Fruit and other crops need varying amounts of water during different stages of growth. Farm operators are now recognizing that they will have to continue to make technological leaps as water becomes more costly.

ESI and partners have invested in excess of $10 million in R & D and their clients have included: US Dept of Agriculture, Federal and Provincial Government Departments of Agriculture, Forestry and Environment, Leading Universities, e.g. University of Georgia, McGill, California, Guelph, Toronto, Vancouver, top vineyards in New Zealand, Australia and the US.

Other applications for the products are in landfill monitoring, site remediation and monitoring leachates from mining tailings. Municipal and city clients in North America already total 28, and include cities of Los Angeles, Las Vegas, Tucson, Glendale, as have several California Counties. Newmont Mines and the US Army Corps of Engineers have also bought systems to track contaminated water seepage. The Norwegian Government bought a system to monitor polluted runoff infiltrating under their new airport runway, which is situated over the City of Oslo's underground water supply. The State of Minnesota and Florida clients have bought several systems to monitor water seepage under roadways. The data gathered from these projects is used to predict road surface breakdown, or when to restrict traffic in certain areas.

The newest ESI product, Flo.Point, uses the same technology and is packaged for the Oil & Gas sector. Flo.Point measures the volume of water in producing oil wells and in nine other related industry applications. Sales have begun through established dealers and OEM's (original equipment manufacturers who integrate Flo.Point into their own systems). This product sells for $9500.00. An independent market study has determined that there are over 40,000 applications in one market sector in Western Canada, alone.

With the new Netafim relationship, and sales of Flo.Point coming online, revenues in the fiscal year (April 02-March 03) are expected to grow significantly over this year's $2.75 million in sales.

Robert A. Young and Associates telephone number is 1-877-626- 2121 or local 604-682-5123. The email address is raya@digital-rain.com. ESI's website is www.esica.com.

Robert A. Young has a position in the company and is responsible for investor relations. The above is for informational purposes only. Nothing in this communication is, nor should be construed to be an offer or solicitation for the purchase or sale of securities. The TSXV has not reviewed and does not accept responsibility for the accuracy of the above. Counsel from a registered securities representative is recommended. The above information may contain forward-looking statements considered genuine by the author and are based on the author's experience and knowledge. However, the outcome will ultimately be determined by forces of which the author may have little or no ability to affect. Any forward-looking statements should not be considered guarantees of results