TSX-V: ESV

2

This presentation may contain forward-looking statements and information that reflects the current views of the management of ESI Environmental Sensors Inc.

Forward-looking statements involve inherent risks and uncertainties that may cause our actual results to be materially different. For detailed discussion of forward looking statements and risk factors, please refer to ESI’s annual report as filed with SEDAR.

FORWARD LOOKING STATEMENTS

FORWARD LOOKING STATEMENTS

3

• Proven and patented water management technology

• Strategically positioned in high growth industry verticals

• Commercial roll-outs to recognizable clientele

WHO WE AREWHO WE ARE

4

SHARE STUCTURESHARE STUCTURE

Listing Details TSXV: ESV

Share Price (Aug 27) $0.40

52 Week High/Low $0.42/$0.235

Shares Outstanding 18,761,889

Warrants 9,148,099 (WAP $0.55; WAL: 1.1 Years)

Options 276,000 (WAP $1.0 ; WAL: 1.2 Years)

Fully Diluted 28,185,988

Insiders Holding 35%

Institutional Holding 17%

5

INVESTMENT HIGHLIGHTSINVESTMENT HIGHLIGHTS

Patented & Proprietary Technology Focused on Driving Efficient Water Use

Strong Product Platform ; $12mm spent to date on R&D

Partnering with Leading Control Systems Companies

Excellent Growth Opportunities Driven by Global Water Shortage & Declining Oil Reserves

Transition from innovators to professional management

6

MANAGEMENT SIGNIFICANT SHAREHOLDERSMANAGEMENT SIGNIFICANT SHAREHOLDERS

MANAGEMENT & BOARD

MANAGEMENT & BOARD

Ian Middleton – Managing Director ● Over 30 years of experience in senior positions● President of Development Finance Corp. Born and

educated in New Zealand, having attended Auckland University

David Porter -- EVP Sales and Marketing● BA in Economics and a MBA from UVIC● Former Director of Business Dev. at Carmanah

Technologies (TSX:CMH) and ACD Systems (TSX:ASA)

● Experienced in developing global retail and distribution network

Bernard Beauchesne – Chief Financial Officer● Graduate of UBC● Senior Management experience at Diversified

Industries (TSXV:DVS)● Various roles including President, Director, CFO and

Corporate Secretary

Robert Dennis Alton – Chair and Director

● Bob has 35 years of experience in corporate dev. in both the Agricultural and Oil and Gas Industries

● Bob currently sits on several private company Boards

Edwin (Bill) Mitchell – Director, Secretary, and Chair of Governance Committee

● Bill has an extensive background in marketing, communications, journalism and in matters of corporate

compensation and union negotiations: three decades with both CTV and CBC, in seven of the provinces

Trevor Moat – Director of New Product Dev.● Masters degree at Carleton University in Ottawa● Specialties are in signal processing algorithms for system

identification and control● Held lead positions at Magna International and SOMA

Networks Inc. in Toronto

OIL INDUSTRYOIL INDUSTRY GEOTECHNICALGEOTECHNICALAGRICULTURAL, GOLF & TURF

AGRICULTURAL, GOLF & TURF

THREE INDUSTRYVERTICALS

THREE INDUSTRYVERTICALS

8

Agricultural Accounts for up to 70% of world’s freshwater usageOnly 4% of U.S. irrigated land uses water management

technology

Oil World wide average of three barrels of water for every one barrel of oil produced Cost per barrel to produce & refine water in oil: $8 in Alberta, $3 in California

Turf Over 17,000 golf courses in North America (National Golf Foundation)

“Among the most important issues facing the game of golf is that of water use” James T. Snow, National Director USGA Green Section

TARGETED VERTICALSTARGETED VERTICALS

9

E.S.I. SOLUTIONS

E.S.I. SOLUTIONS

Gro●Point™ - measures soil moisture by volume for agricultural soils. Enables higher quality crops and greater yield and reduced leaching; focused on the Agriculture and Turf markets

Flo•Point™ - inline water sensors that measure water content in a hydrocarbon stream; oil water cut sensors. Enables optimized production – more net oil

Moisture●Point® - profiling moisture monitoring systems focused on the Geotechnical, Scientific and Academic Research markets

10

Accurate Knowledge of Soil Moisture Level Can:• Increase crop yield

• Increase crop quality

• Decrease fertilizer use & costs

• Decrease leaching and erosion

• Decrease production costs

High Value Crops Include:

• Cranberries• Asparagus• Peppers• Tomatoes

• Grapes• Avocados• Tree Fruits• Citrus

Gro•PointTMGro•PointTM

AgricultureAgriculture

Irrigated Land in N.A: 64 mm acresRevenue per Acre: $500 - $1250Addressable Market: $30 BlnGross Margin: 50%+Penetration: 40 Countries –

Netafim, Adcon, Gro Net, PureSense

11

Gro•PointTM Contd.Gro•PointTM Contd.

Moisture Monitoring Enables Managers to:• Provide superior turf quality

• Reduce overhead costs

• Enhance environmental stewardship

• Parks & recreation

• Golf courses

Turf GrassTurf Grass

Golf Courses in N.A: 17,000+Revenue per Course: $50 - $60,000Gross Margin: 50%+Addressable Market: $1B+Penetration: Signature Control

Systems, City of Calgary, City of LA

12

OilOil

Problem: • The Industry needs real-time, automated measurement of water content in oil production• Pinnacling causing over production of water, damage to formation and inefficient operation

Solution: Flo•Point™ continuous real-time data: • reduces labor costs and downtime

• optimizes oil production

Pay back: Vertical Well – 1 to 3 months Horizontal Well – 0.3 to 1 month

Flo•Point™Flo•Point™

Oil Wells in N.A: 700,000+Revenue per Well: $15,000 - $20,000Gross Margin: 60%+Addressable Market: $1 B+Penetration: EnCana (Canada), Encore

Acquisition Co.(USA), ANA (U.A.E)

13

Moisture Monitoring Helps Determine:• If water has infiltrated the cover• If moisture is moving upwards from the waste• Stability of mine waste piles and exposed slopes• ESI profiles landfills & monitors water movement

GeotechnicalGeotechnical

“Isolate the waste from humans and animals, and prevent movement of the waste by wind or water”

Source: Mitretek Systems

Moisture●Point®Moisture●Point®

Landfills in N.A: 1200+Revenue per Landfill: $100,000+Gross Margin: 55%+Addressable Market: $120 mm+Penetration: City of LA, Alcoa Aluminum, Little Rock AK, City of Glendale

14

Gro●Point™• Fragmented market • More accurate and robust than competitors

Flo•Point™• Focus is on the mid-range of 10%-90% water in an oil stream• Flo•Point™ is more accurate in both light and heavy oil and is price

competitive

Moisture●Point®• More accurate and robust than competition• ESI is the only player in the landfill market

COMPETITIVE LANDSCAPE

COMPETITIVE LANDSCAPE

Please see Appendix for competitive charts

15

Pro Forma Income(Internal Only)

Pro Forma Income(Internal Only)

2.908

6.047

12

1.279

3.628

7

-0.171

1.97

4

-2

0

2

4

6

8

10

12

14

FY2008 FY2009 FY2010

$mm

Revenue Gross Profit EBITDA

FINANCIAL FORECASTFINANCIAL FORECAST

16

REVENUE BY SECTOR

REVENUE BY SECTOR

F2008 -09 F2009 -10 F2010 -11

Gro·Point Systems Moisture·Point Flo·Point

1.7281.7280.340.34

0.540.54

3.753.750.570.57

1.721.725.655.65

0.970.97

5.665.66

($ M)

17

• Enhance “end to end” system product approach• Expand presence in agriculture, oil & turf markets• Strategic partners to provide speed to market• Disciplined, focused product development• Enhance product line with increased functionality

GROWTH STRATEGYGROWTH STRATEGY

INTERNALINTERNAL

• Expand third party partnering for increased vertical integration in sales, distribution & installation

• Broaden technology platform to other industry sectors• Continue to broaden geographic reach• Acquire & integrate with third party technologies

EXTERNALEXTERNAL

18

MILESTONESMILESTONES

2007 2008Q4 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec

Encana Trial

Calgary Municipal Trial

Introduced Gro•PointTM Wireless to cranberry market

Partnership with Signature

John Deere

Widening Distributor Network

New Partners Signed

Strategic alliance w/ major agriculture service

provider

New Division Encana Trial

Expanding internal sales force by sector

Expansion w/ large international oil co.

Abu Dhabi trial starts

NZ wineriesGro•.Point

Oil Sands Monitoring

19

OFFERING SUMMARYOFFERING SUMMARY

Issuer: E.S.I Environmental Sensors Inc. (TSXV: ESV)

Offering: Units consisting of: One Common Share One Half Common Share Purchase Warrant

Amount: Cdn $5,400,000

Issue Price: Priced in context to market

Deal Type: Non-brokered

Offering Procedure:

Private Placement to Accredited Investors

Finder’s Fee: 8% cash

Closing: On or around September 30, 2008

20

CORPORATE HEAD OFFICE:

2071C Malaview Avenue West

Sidney, BC V8L 5X6

CANADA

www.esica.com

TSX-V: ESV

21

APPENDIX

ESI Acclima Agrilink/Aquaspy

Baseline Decagon Irrometer Sentek

Technology TDT TDT Capacitance

TDT TDT, Capac.

Gypsum Block, tensiometer, capacitance

Capacitance FDR

Profiling Yes – MoisturePoint

No Yes - AquaSpy

No No No Yes-Triscan

Accuracy (range of measurement)

+/- 1% (8 to 42%)

+/- 3% (0 to 100%)

N/A N/A +/- 3% (0 to 40%)

N/A N/A

Salinity compensation

Tolerate high salinity

Stability decreases over 2dS/m

No Stated to “tolerate high salinity”

State salinity effects are greatly minimized”

Internal compensation

Measure salinity separately

Applications Agri., Turf, Research

Turf Agri., Turf, Research

Turf Agri., Research

Agri., Turf, Research

Agri., Turf

Telemetry options

Wired, Wireless

Wired, Wireless

Wireless Wired Wired, Wireless

Wired, Wireless Wired, Wireless

Wireless interface

Wireless, Windows

N/A Yes No Yes Yes Yes

User interface at location

Handheld, data logger

Controller panel

Data logger Controller panel

Handheld, data logger, PDA

Handheld, data logger, PDA

Handheld, data logger, PC

Installation technique

Slide hammer, digging

Augur Augur Trenching Trenching, insertion tool

Augur Access tube

Ancillary equipment

None Requires 2 wire system linked to controller

None Requires 2 wire system linked to controller

None None None

Robustness Very Moderate Moderate Moderate Fragile Very Moderate Price/probe (USD)

$155 $200 to $350

$600 $300 $100 $90 N/A

Gro•PointTMGro•PointTM

CompetitionCompetition

CompetitionCompetition

Moisture●Point®Moisture●Point®

ESI Delta - T IMKO Technology TDR Capacitance, FDR TDR Profiling Yes Yes Yes Accuracy (range of measurement)

+/- 1% (8 to 42%) +/- 1% (unclear about range) +/- 2% (0 to 40%), +/- 3% (40 to 60%)

Salinity compensation Tolerate high salinity Sensitive to low salinity Tolerant to moderate salinity Applications Agriculture,

Research Agriculture, Research Agriculture, Research

Telemetry options Wired, Wireless Wired, Wireless through weather station

Wired

Wireless interface Wireless Through weather station N/A User interface at location Handheld, data logger Handheld, data logger Through Palm/Windows Installation technique Insertion directly into the

soil (limited soil disruption)

Access tube Access tube

Ancillary equipment None None None Robustness Very Potentially fragile Moderate Price/probe (USD) $500 Comparable but no firm pricing Comparable but no firm

pricing

Instrument cost for ESI MP is approx. $5500 USD

24

PROPRIETARY TECHNOLOGYPROPRIETARY TECHNOLOGY

TDR: Time Domain ReflectometryTDR: Time Domain Reflectometry

• Similar to radar

• Electro-magnetic Pulse

• Time equates to amount of moisture / water present

• Reflection occurs 6x in standard probes

• Readings at multiple depths over length of probe

• Continuous vertical or horizontal profile

• TDR used in the Moisture.Point product suite.

TDT: Time Domain TransmissionTDT: Time Domain Transmission

• Enhanced version of TDR invented by ESI

• Time equated to amount of moisture / water

present • Continuous transmission line

• Simpler signal allows for high accuracy

• TDT used in the Gro.PointTM and Flo.PointTM product suites

WORLD LEADING MOISTURE SENSING TECHNOLOGYWORLD LEADING MOISTURE SENSING TECHNOLOGY

25

ENCANA TRIALENCANA TRIAL

Heavy Crude – (API 12-14) Watercut 45-65%

Junction Box, Disconnect Switch & RS232 Cable

Medium Crude – (API 30-40) Watercut 65-85%

Medium Crude – (API 30-40) Watercut 65-85%

26

Pad 17 100 13-23

30

35

40

45

50

55

60

13

:45

:00

13

:50

:00

13

:55

:00

14

:00

:00

14

:05

:00

14

:10

:00

14

:15

:00

14

:20

:00

14

:25

:00

14

:30

:00

14

:35

:00

14

:40

:00

14

:45

:00

14

:50

:00

14

:55

:00

15

:00

:00

Time

Wa

ter

Cu

t (%

)

17

18

19

20

21

22

23

24

25

26

27

28

29

WC

FTemp

ACTUAL WATER CUT FIELD DATA

ACTUAL WATER CUT FIELD DATA

ESI MeasuresContinuously

ESI Data far Superior

30

35

40

45

50

55

6027/1

1/2

006

04/1

2/2

006

11/1

2/2

006

18/1

2/2

006

25/1

2/2

006

01/0

1/2

007

08/0

1/2

007

15/0

1/2

007

22/0

1/2

007

29/0

1/2

007

05/0

2/2

007

12/0

2/2

007

19/0

2/2

007

26/0

2/2

007

05/0

3/2

007

12/0

3/2

007

19/0

3/2

007

26/0

3/2

007

02/0

4/2

007

BSW- meter BSW- manual

Flo•PointTM MeasurementsFlo•PointTM Measurements