Management and Market Update from Electronic Sensor Technology

NEWBURY PARK, Calif.–Electronic Sensor Technology (EST) (OTCBB:ESNR), a leading provider of innovative homeland security and environmental solutions, announced it was restructuring its business to better align resources with current market conditions. Dr. Teong Lim, Chairman and CEO, reported that the company has taken a decision to restructure the company to concentrate and provide a streamline approach to security market. Although prospects for the zNose in security and environmental applications are attractive, sales to China, the company’s largest single market, have been significantly affected by the Chinese government’s concentration on the Olympic Games and reconstruction following the Sichuan earthquake. Dr. Lim said, “As a result of these significant events, we are sizing the company and placing more emphasis on marketing and customer support for the current business opportunities.” EST’s Japanese distributor has placed an order for a Model 4300 to be used in a security application and the Swiss distributor is performing beta testing at an Italian port for shipping container inspection. Founded in 1995, Electronic Sensor Technology has developed and patented a chemical vapor analysis process with applications for the homeland security and environment markets. SEC Filings and Forward-Looking Statements This press release includes forward-looking statements, including the Company’s expectations regarding its ability to develop and access capital markets and its ability to achieve expected results in the chemical detection and analysis industry. The forward-looking statements are identified through use of the words “potential,” “anticipate,” “expect,” “planned” and other words of similar meaning. These forward-looking statements may be affected by the risks and uncertainties inherent in the chemical detection and analysis industry and in the Company’s business. The Company cautions readers that certain important factors may have affected and could in the future affect the Company’s beliefs and expectations, and could cause the actual results to differ materially from those expressed in any forward-looking statement made by or on behalf of the Company. For a discussion of these factors, please refer to our recent filings with the Securities and Exchange Commission, including our most recent report on Form 10-KSB. The Company undertakes no obligation to update forward-looking statements to reflect events or circumstances after the date hereof.

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