eRoomSystems Invests $160,000 in Biometric Security Provider

May 27, 2005

LAKEWOOD, N.J. -- eRoomSystem Technologies, Inc. (OTCBB:ERMS), a supplier of in-room technological amenities for the lodging industry, today announced that it has made an investment of $160,000 in Identica Corporation, a distributor and integrator of next generation biometric security solutions based in Toronto, Canada.

The investment consists of a secured loan in the amount of $150,000 with a twenty-five (25) month term. The loan is non-interest bearing for the initial twenty-four (24) months, then interest bearing at the rate of ten percent (10%) per annum thereafter, and is secured by all of the assets of Identica. eRoom was issued a warrant to purchase 1,000,000 shares of common stock, exercisable at $0.15 per share for a period of five (5) years. In addition, eRoom purchased 1,666,667 shares of common stock of Identica for the sum of $10,000. In total, eRoom is a beneficial owner of 16% of the issued and outstanding common stock of Identica, on a fully-diluted basis. Simultaneous with the eRoom investment, an investment group lead by a third party eRoom shareholder has committed to purchase $600,000 of Identica common stock, representing 24% of the issued and outstanding common stock of Identica, on a fully-diluted basis.

While eRoom continues to maintain and service its refreshment centers currently installed at hotels in the U.S. and abroad, the investment in Identica represents diversification in the business model. Additional investments may be made in emerging growth companies in the future as eRoom seeks to leverage its vastly improved balance sheet in an effort to maximize shareholder value.

"Since joining eRoom in October 2003, we have made tremendous progress in terms of our balance sheet and operating results, as evidenced by our record profits and significant decrease in debt in fiscal year 2004 and having more than $800,000 in cash as of the fiscal quarter ended March 31, 2005," said David A. Gestetner, Chief Executive Officer and President. "While we are pleased to have achieved these financial results, we believe it is important to diversify through passive and non-passive investments, as well as strategic opportunities, that offer significant returns to eRoom to maximize shareholder value. We intend to pursue the growth of our core business of providing fully automated and interactive refreshment centers, including possible strategic opportunities within the sector."