ESI's Gro.Point(tm) is a sensor that probes soil to precisely measure water content. The sensors can be linked to an irrigation system to ensures that the most efficient amount of water is applied, resulting in maximum crop yield, reduced input costs and significant water savings.

Victoria, B.C. - July 29, 2003 ESI Environmental Sensors, a Victoria-based manufacturer of water management technology, has signed an international distribution agreement with Israel-based Netafim, one of largest irrigation firms in the world. This agreement will introduce ESI products to markets seeking water efficiency solutions around the world.

"Joining with Netafim opens up over one hundred countries to us," said Gail Gabel, President of ESI. "To date we have sold our Gro.PointT technology primarily in North America; this will radically increase our exposure in new markets where water conservation is a huge priority."

ESI's Gro.PointT is a sensor that probes soil to precisely measure water content. The sensors can be linked to an irrigation system to ensures that the most efficient amount of water is applied, resulting in maximum crop yield, reduced input costs and significant water savings.

"Our decision to integrate ESI moisture measurement and monitoring products into our Crop Management Technology (CMT) offering reflects our confidence in ESI's technology," said Booky Oren, Netafim Corporate Vice President for nBusiness Development. "We chose ESI because they, like ourselves, have a rich history of agronomic expertise and a true appreciation for the global benefits of advanced agriculture."

Netafim, inventor of the environmentally friendly, water-saving drip irrigation method, provides end-to-end solutions for open-field agricultural and landscaping irrigation, turnkey greenhouse projects, wastewater management, and advanced crop management and monitoring systems. With sales of drip irrigation emitters exceeding three billion annually, Netafim has 12 manufacturing facilities in eight countries, 28 subsidiaries, and distribution presence in over 100 countries. Netafim's annual revenues currently exceed $250 million US. For more information about Netafim, visit www.netafim.com.

"We expect our technology to be a component in many of Netafim's future sales," said Gabel. "We can make any form of irrigation more efficient by simply linking our moisture sensors to their irrigation system. Together we're producing the ultimate water management system."

Under the agreement, Netafim will distribute Gro.Point exclusively throughout its worldwide markets for irrigation applications in commercial agriculture, golf, landscaping and water treatment. Netafim may also include other ESI technology in the agreement and contract with ESI to develop future products.

About ESI Environmental Sensors Inc.
ESI is a leading developer and manufacturer of patented and proprietary systems for water management. ESI products have been successfully introduced into over 40 countries to manage irrigation systems, monitor water quality, assess the integrity of landfill covers, and, most recently, to measure the volumetric presence of water pumped from producing oil wells in the oil & gas sector. Environmental managers and scientists have adopted ESI proprietary technology because of its accuracy, ease of use and ability to operate in challenging conditions. ESI is publicly traded on the TSX Venture Exchange under the symbol "ENV". For more information, visit www.esica.com