Mr. Stephan Radermacher reports

ESI ANNOUNCES EXCLUSIVE PARTNERSHIP FOR CHINA, SIGNING A MULTI-MILLION DOLLAR DISTRIBUTION AGREEMENT WITH KEY PLAYER IN WATER RESOURCE MANAGEMENT

ESI Environmental Sensors Inc. has signed a distribution agreement with Beijing Yanyu Water Technology Company Ltd., a subsidiary of Tri-Tech Holding Inc. With operations in China, the United States and India, Tri-Tech provides turnkey water resources management, water and waste water treatment, water-efficient irrigation, and industrial emission and safety control solutions, with fiscal 2012 sales of $72.6-million.

ESI and BJYY/Tri-Tech held initial meetings over 1-1/2 years ago. Since that time, the parties have worked together toward, firstly, the testing and national acceptance of ESI's sensing technology for the Chinese market, and, secondly, an agreement on an exclusive partnership for China. The process has involved the development by ESI of a customized version of the company's TDT (time domain transmissiometry) soil moisture sensors in order to meet physical measurement parameters specified by Chinese government ministries. ESI has supported efforts by BJYY for their in-house testing of the sensor, as well as testing of the sensor by Chinese government ministry scientists. Through these various tests, this customized version of ESI's GroPoint Lite profiling probe has been selected by BJYY/Tri-Tech as their preferred product and ESI as their premier supplier for the Chinese market.

This tremendous investment in effort, patience and resources by both parties over the past 20 months has finally paid off. ESI's board and management are extremely pleased to announce this long-term partnership and supply agreement with BJYY/Tri-Tech. It represents a reliable and sizable product distribution through a key market player and lead customer -- a supply and sales partnership for one of the most important and significant markets in the world.

Under the terms of the distribution agreement, significant minimum purchase requirements allow for a steady and reliable production and sales volumes over an initial minimum period of three years. ESI and BJYY/Tri-Tech will continue to develop and grow their partnership by expanding product range and market reach throughout this period and beyond.

"This agreement with BJYY/Tri-Tech resembles exactly what ESI has been aiming at with its relentless efforts to develop the most competitive technological product excellence: solid, long-term, high-volume supply partnerships with selected key players in the most promising volume markets of the world. We will continue along these lines and grow ESI into truly global product presence in this application area and beyond. The board is extremely pleased with this milestone success on behalf of all of ESI's stakeholders, and is fully committed to help translate this significant sign of ESI's technological leadership into sustainable growth and financial success for the company," said Stephan Radermacher, chairman of the board of ESI and executive director/chief operating officer of Avis Financial Corp., ESI's majority shareholder.

"Introducing new and high-tech products into the Chinese hydrological industry is one of Yanyu's development directions. During our research of technology suited to this market, we were very lucky to identify ESI as a potential business partner. After detailed communication and solid efforts by both sides, we are very excited that we can now develop a long-term, prosperous and co-operative relationship. We are looking forward to learning more from each other, and to creating more and more areas of co-operation between our companies," said Hongzhi Ma, chief executive officer of Beijing Yanyu Water-Tech.

About Tri-Tech

Tri-Tech is an innovative provider of consulting, engineering, procurement, construction and technical services. The company supports government, state-owned entities and commercial clients by providing water and waste water treatment, water resource management, water-efficient irrigation, and industrial emission and safety control solutions. With intellectual properties and capable employees in China, the U.S. and India, Tri-Tech's capabilities span the cycle of innovation from development through implementation and operation. The company operates in three segments: (i) water, waste water treatment and municipal infrastructure (WWTM), (ii) water resource management system and engineering services (WRME), and (iii) industrial pollution control and safety (IPCS).