DaimlerChrysler Selects SmarTire Monitoring System for Concept Car

    RICHMOND, British Columbia--June 12, 2002-- SmarTire Systems Inc. , a leading developer of tire pressure and temperature monitoring technology, announces that its tire monitoring product has been included as an essential component of a concept car unveiled at the DaimlerChrysler Innovation Symposium on June 11th, 2002 in Stuttgart, Germany. The SmarTire monitoring system was installed on a Jeep Grand Cherokee Concierge, a prototype introduced by the Liberty and Technical Affairs advanced technology development group of DaimlerChrysler in Auburn Hills, Michigan. The Concierge is designed to maximize vehicle safety, comfort and convenience through the inclusion of innovative, leading edge technologies.
    The SmarTire system includes a tire monitoring sensor mounted to the back of the valve stem inside each tire and a centralized receiver. The sensors continuously measure tire pressure and temperature and transmit this information to the receiver. Any abnormal change in pressure or temperature results in a warning to the operator of the vehicle. Installed on the Concierge in conjunction with an automatic tire air pump, the combined system automatically re-inflates tire pressure to a specified level, ensuring optimal inflation of tires under different situations and temperatures. In addition to the safety factor, proper tire inflation also extends tire life, increases fuel economy and improves performance in braking, handling and speed rating.
    "With recent NHTSA rulings, vehicle safety is at the top of the agenda for the auto industry," said Robert Rudman, President and Chief Executive Officer of SmarTire Systems. "Having the SmarTire monitoring system showcased at the DaimlerChrysler Innovation Symposium is a significant achievement for SmarTire and a recognition of tire monitoring as a fundamental feature of vehicle safety."
    SmarTire Systems Inc. is a pioneer and market leader in the development of direct measurement tire monitoring technology for all sectors of the automotive and transportation industries. With the National Highway Traffic Safety Administration (NHTSA) rulemaking that requires the installation of tire pressure monitoring systems in all passenger vehicles and light trucks beginning November 1, 2003, there is immediate and substantial market potential for SmarTire technology. The Company is positioned strategically, competitively and technologically to take full advantage of this opportunity. Incorporated in 1987, SmarTire is a Nasdaq listed company with offices in Canada and the United Kingdom. Additional information can be found at www.smartire.com.

    Al Kozak, Chief Operating Officer

    This news release may include statements about expected future events and/or financial results that are forward-looking in nature and subject to risks and uncertainties. Forward-looking statements in this release include, but are not limited to, those statements regarding, the anticipated demand for tire monitoring technology, sales of SmarTire's products and technology to original equipment manufacturers, the size of the market, the ability of the Company to complete additional financing, and, the impact and scope of the new United States legislation. It is important to note that actual outcomes and the Company's actual results could differ materially from those in such forward-looking statements. Factors that could cause actual results to differ materially include general factors such as insufficient investor interest in the Company's securities, the impact of competitive products and pricing and general economic conditions as they affect the Company's customers, and specific risks such as the uncertainty of the requirements demanded and timing specified by U.S. government, reliance on third party manufacturers to product SmarTire products and technology, and, the Company's ability to source product components in timely manner. Readers should also refer to the risk disclosures outlined in the Company's annual report of Form 10-KSB for the last completed fiscal year filed with the SEC.