From the Chairman and Chief Executive Officer,

It is with great pride that I write to you today to share our progress and plans for moving forward in 2010. We have accomplished much in the past year and we are now charting the future of ESP with confidence. As the markets and economy shifted and changed, we at ESP also adjusted our business plan to focus on the most promising partnerships and opportunities to continue to move our business forward and meet or surpass our funding goals for 2010.

Many of you may have helped us throughout this period of time, and we are grateful and thank you for your contributions. The success we are about to experience is due in part to the dedication and many sacrifices made by our past and current employees, our board members, past and current bridge lenders, and short term financiers.

Our business models and divisions have made significant changes during 2009 and will continue in 2010 heading in new directions with new leadership. We also plan to acquire a few more companies within the First Quarter of 2010. These strategic acquisitions are critical to our success and part of the reason that ESP’s funders believe in our future ability to succeed and thrive.

In 2009 we developed strategic relationships with government agencies, union officials and others to build a foundation for the creation of green sustainable jobs. One emphasis continues to be developing programs and training for returning Veterans as well as Disabled Veterans. Our Safeguard Division expects to launch training and development for inspectors in the first quarter of 2010. Major corporations have established partnerships with ESP to form strategic alliances. These industry leaders are providing the tools and equipment necessary for success nationwide. We are in the final stages of establishing recurring sources of inspections through our "Healthy Home America" program and through our "Healthy Home Mortgage Program", which will embrace our 10 year Annual Home Inspection Protocol Program "The Healthy Green Living Certification".

Our new jobs program will be launched with the goal to train and hire over 50,000 Veterans over the next 36 months as Certified Environmental Home Inspectors and train and hire over 10,000 Disabled Veterans to become Customer Service Representatives to support the inspectors and customers of this new program. We have been successful in consolidating the various protocols for energy, moisture mold and other indoor air quality programs to where one inspector can inspect a home on several different levels of protocols at the same time. Through this consolidation a complete audit can be done which will reduce the overall cost for inspection for the consumer and stakeholders. This will also result in the mitigation of potential long term risk.

• Providing Inspections for:
  • Energy Audits
  • Indoor Air Quality
  • Home Inspection
  • Radon
  • Lead and Asbestos

We have worked closely with many Congressional Members, Department of Labor, Department of Commerce, Veteran Administration and LIUNA (Laborers International Union of North America) to provide the necessary funding for the training and equipment for Veterans through the GI bill. We have worked hard to create and develop the standards, methodology and the necessary process to provide the training and support for this new workforce.

ESP is working closely with Federal Agencies and Private Industry Stakeholders on our core programs:

• Healthy Homes America
• Healthy Home Mortgage
• Healthy Green Living Certification (Annual Inspection- through the Healthy Home Mortgage) ensuring 10 years of employment for each inspector.

Several of the Industry stakeholders that have been very involved with our efforts are:

• CompuCom and Hewlett Packard (HP) have both been very involved in developing the needed equipment and technology support for launching the training of Veterans in becoming CEHI inspectors.
• The Hartford Insurance Company is in the process of developing a customer discount programs which will be available to homeowners that participate in an annual inspection under the Healthy Home Mortgage program. (We also are making introductions with other national carriers to participate in this program as well.)
• We are in the final process of having our programs reviewed by several mortgage institutions at the highest level. It is our intention to have several of these groups endorsing and launching the Healthy Home Mortgage program this year.

Our progress will enable thousands of Veterans to obtain employment in their local communities that will have a life span greater than many of the federal jobs programs coming into place. For the Disabled Veterans their employment opportunities will consist of a home based structure through the support of HP and CompuCom. We are all confident as we work in partnership with the DOL and the VA that many Disabled Veterans will have the ability to once again contribute to their local communities by providing a valuable service to thousands of American families.

I am very enthusiastic about our future and look forward to continuing to lead ESP into the future for our Shareholders, Corporate Divisions, Stakeholders and all of our employees. We are planning a Shareholders Meeting in Palm Springs, California toward the end of 2010. Look for details through our press releases.

My wish is that you all experience a beautiful, healthy and prosperous 2010.

Sincerely,

Edward L. Torres
Chairman and CEO
ESP, Inc.

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Statements in this WEB Site may constitute forward-looking statements and are subject to numerous risks and uncertainties, including, but not limited to, a lack of adequate capital to enable the Company to execute its business plan or make important business acquisitions in order to grow; the failure to complete successfully the development of new or enhanced products and services; the lack of market demand for any new or enhanced products and services the Company may develop; any actions by the Company or its partners that may be adverse to the Company; the success of competitive products and services; other economic factors affecting the Company and its markets; seasonal changes; and other risks detailed from time to time in the Company's filings with the U.S. Securities and Exchange Commission. Actual results may differ materially from those expressed in this press release. The Company disclaims any obligation to update any statements in this press release.