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zNose Enters China's Environmental and Security Market

June 9, 2006

Electronic Sensor Technology receives contract from Chinese State EPA.


NEWBURY PARK, Calif. /BUSINESS WIRE/ -- Electronic Sensor Technology (EST), a leading provider of innovative homeland security and environmental solutions, announced that it has received an initial order of four zNose units from the Chinese State EPA through its distributor, Beijing R&D Ltd. This is a result of a successful demonstration of zNose for monitoring and analysis of contaminated water in December 2005, due to a chemical plant explosion near Songhua River in northeastern China. zNose was chosen over its competitors to monitor and determine the safety of the river water before restoring the water supply to the city. zNose was chosen because of its sensitivity and near real-time speed of less than 1 minute analysis time. Based on the projections from the EST China distributor, EST expects to open up a major market for zNose beginning this month. Substantial sales orders in China are expected in the coming years from the environmental monitoring market.

According to a recent news report based on the recent Environmental Protection White Paper issued by the Chinese State EPA (SEPA), the Chinese Government will allocate up to RMB1.4 trillion (equivalent to $175 billion) in the next 15 years in battling pollution and improving its environmental quality. In another statement made in February of 2006, Zhou Shengxian, director of the SEPA, indicated that control of water pollution will be the top priority for the government. He was quoted as saying, "The most urgent task for us is to check water pollution to ensure the safety of drinking water, and we must win the battle." Further details on the subject are available by clicking here.

On the security market, zNose has also made its mark in China during the recent Third China International Exhibition on Police Equipment held in Beijing from May 24-27, 2006. EST's new battery-operated Model 4300 was demonstrated at the exhibition and received a warm reception among both police and security communities. Initial contacts indicate great interest among the potential users, especially various units in the military. "We are looking forward to breaking into the Chinese security market for our zNose within the next six months," said Dr. Teong C. Lim, president of EST.

About Electronic Sensor Technology:
Founded in 1995, Electronic Sensor Technology has developed and patented a chemical vapor analysis process. We believe that the company's product line is positioned to eliminate key vulnerabilities in the homeland security market, specifically in maritime port, airport and border security applications.


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