It does indeed work on ESP and the actual Tyres or wheel size makes no difference. It works by detecting that one wheel is moving at a different speed. When the system activates you have to reset the pressures and then 'reset it' this is in effect so the system can recalibrate itself. In your case you would need to reset it after fitting the new set of wheels.
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SL500 R230..Part ex'd for the SLK