ESI Proposes $2.5 Million Shares for Debt Transaction

VICTORIA, British Columbia, April 5, 2012 /CNW/ - E. S. I. Environmental Sensors Inc. ("ESI" or the "Company"), (TSX-V: ESV) is pleased to announce the filing of a "Shares for Debt" transaction consisting of the proposed issuance of 49,795,499 common shares for settlement of $2,489,775 in debt. The deemed price per common share will be $0.05. The proposed debt settlements consist mainly of convertible debentures and accumulated interest.

The shares for debt transaction includes the conversion of principal and all accrued interest owing to holders of matured convertible debentures for a total value of $2,463,458.45 or 49,269,169 common shares. Included in this amount, Avis Financial Corporation ("Avis Financial"), a controlling shareholder of the Company, will receive 34,106,080 common shares for the repayment of convertible debentures and accumulated interest outstanding. Avis Financial currently holds 43.7% of the issued and outstanding common shares of the Company. With the closing of this transaction, Avis Financial will own 54.13% of the issued and outstanding common shares.

In addition to the common shares to be issued in settlement of the convertible debentures, 526,330 common shares will be issued to a former employee of the Company in lieu of severance.

The Shares for Debt Transaction has been submitted to the TSX Venture Exchange and is subject to TSX Venture Exchange acceptance. The Company will issue a further press release upon final acceptance of this transaction.

About ESI

ESI is a leading manufacturer of patented and proprietary solutions for environments where understanding the presence, movement, and/or amount of water are important. Major market sectors include: agriculture, golf and turf, scientific research, civil engineering, mining, environmental monitoring and crude oil production. ESI solutions have been successfully introduced into more than 40 countries to enable customers to optimize their operations by monitoring the presence and movement of water, managing irrigation systems, and monitoring the integrity of landfill covers. In addition, ESI's Flo·Point™ instrument has been deployed in the oil industry to measure the volumetric presence of water pumped during crude oil extraction for characterization and optimization of the process. ESI differentiates itself by translating the best technology and science available into practical, easy to use solutions. Irrigation managers, reservoir engineers, and scientists have adopted ESI's products for their accuracy, ease of use, repeatability, and ability to operate in challenging environments. ESI is publicly traded on the TSX Venture Exchange under the symbol "ESV". Further information about ESI may be obtained through the Company's website at www.esica.com.

THE TSX VENTURE EXCHANGE HAS NOT REVIEWED AND DOES NOT ACCEPT RESPONSIBILITY FOR THE ADEQUACY OR ACCURACY OF THIS RELEASE.

SOURCE E. S. I. Environmental Sensors Inc.

For further information:

http://www.esica.com