Annual Shareholder letter from ESP C.E.O.

A Message to All ESP Employees & Shareholders

As we begin 2010 I wanted to take this opportunity to bring you up to date on the work ESP has been involved in, the milestones we have achieved and what the future holds. There is no question that 2010 was a challenging year on many fronts.  Despite those challenges we have had significant achievements that have provided the company much needed progress and a solid foundation for 2011 and beyond.

While funding has been our major challenge in that it has evolved slower than expected, we have made considerable progress toward our financial goals.  We have secured collateral and closed a funding commitment.  This has laid the groundwork for the upcoming 2011 launch of several new programs and contracts.

Our auditing work for the Securities and Exchange Commission (SEC) reporting is complete and we should be filing this month.  Full SEC reporting for prior years is the cornerstone for our company’s financial stability and future.

While addressing these paramount challenges on the financial side, staff has not lost sight of moving ESP toward strategic partnerships and programs that will provide exponential growth for us in 2011.  Those important accomplishments include:

• Launched the first training program that includes indoor air quality and energy efficiency which will be used to train Veterans; the National Association for Moisture Management (NAMM) has been pivotal in development of these national standards.
• Established the American Workforce Program for Veterans;
• Established direct contacts and relationships with the Department of Labor, Veterans Administration, Department of Defense, EPA and the Department of Commerce to prepare for the launch of our American Workforce Program;
• We are now a partner in the California Energy Upgrade California Program that will create thousands of jobs;
• Our business models and divisions have made significant changes in 2010 and will continue their forward progress in 2011.
• ESP continues to work closely with Congressional Representatives, Federal Agencies and Private Industry Stakeholders on our core and new programs:
• Healthy Homes America
• Healthy Home Mortgage
• Healthy Green Living Certification
• American Workforce
  
• 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”

We continue to be very optimistic about the arrival of our principal funding however we have structured alternative plans to ensure the successful financial future of ESP.  Many of you 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 large part to the dedication and many sacrifices made by our past and current employees, our Board Members, bridge lenders, and investors.

I look forward to continuing to lead ESP into the future as we chart our course for success for our Shareholders, Corporate Divisions, Stakeholders and all of our employees. We are planning a Shareholders Meeting to be held in Palm Springs, California. Look for details through our press releases.

May this year bring you and your loved ones joy, health, happiness and prosperity.

Sincerely,

Edward L. Torres

Chairman & CEO