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e-Smart Technologies, Inc. Responds to Information Subpoenas From Securities & Exchange Commission
Date:12/31/2007

NEW YORK, Dec. 31 /PRNewswire-FirstCall/ -- via COMTEX -- As discussed by e-Smart Technologies, Inc. (Pink Sheets: ESMT); ("e-Smart" or the Company") during its December 27, 2007 Telephonic Shareholder Conference Call, the Securities and Exchange Commission (SEC) has initiated an inquiry and has issued subpoenas to the Company for documents including those relating to certain loans made to e-Smart from its parent company IVI Smart Technologies Inc., ("IVI") and Intermarket Ventures, Inc. As in all such inquiries, the SEC has confirmed that it is conducting a "non-public fact-finding inquiry" and that its inquiry "does not mean that [the SEC] have a negative opinion of any person, entity or security" or "that anyone has broken the law." As confirmed by the Company's legal counsel during that telephonic conference, "we received those requests for information, we've reviewed them and we're in the process of complying with all requests for information that come from the SEC."

The Company's legal counsel, Maranda Fritz, also provided an update relating to other important legal issues affecting the Company including the Company's pending litigation in the Northern District of California which resulted from the actions taken by two convicted felons, Wayne Drizin and Michael Gardiner, and Gardiner's company, ID Smart. Fritz advised that the court issued an order prohibiting Drizin from any involvement in the biometric smart card industry, and barring Gardiner from using any e-Smart technology. The court further ordered that those defendants return to e-Smart any and all property of the Company that they possessed. The Company is seeking a permanent injunction to prevent any use in the future of e-Smart's technology by Drizin and Gardiner and ID Smart.

The issuance of subpoenas by the SEC may also relate to further efforts by Gardiner and the other defendants to damage the Company and its shareholders. In November of 2007, Gardiner issued a public releas
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SOURCE e-Smart Technologies, Inc.
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