SmarTire Products Included on New Flyer Buses for Chicago Transit Authority

Nation's second largest transportation authority includes SmarTire monitoring systems in award

RICHMOND, BC, Dec. 6 -- SmarTire Systems Inc. (OTCBB: SMTR) announced today that its tire pressure monitoring systems (TPMS) will be included on new buses that have been awarded by the Chicago Transit Authority to New Flyer Industries for delivery in 2006 and 2007. The award, including optional purchases, represents in excess of 1,000 vehicles. New Flyer Industries is the largest manufacturer of transit buses in North America.

The new buses will be fitted with SmarTire's new controller area network (CAN) SAE J1939 chassis mounted receiver and commercial high pressure sensors. The SmarTire TPMS system provides tire pressure and temperature information while the bus is in motion or stationary and provides the driver with an early warning of a tire related problem. SmarTire TPMS systems can be installed as standard equipment on new buses or retrofitted to existing buses.

According to the American Public Transport Association, there are over 2,200 transit authorities in the U.S., operating over 76,000 transit buses. In 2003, approximately 7,000 new buses were delivered to various urban and rural transit authorities.

"In addition to being the second largest transit authority in the US, the CTA is seen as the industry leader in adopting new technologies," says Erwin Bartz, VP of Business Development at SmarTire. "We feel the important economic and safety advantages of our technology have been recognized by the CTA and we expect many more transit authorities to follow their lead in specifying TPMS as standard equipment on new buses and in retrofitting existing fleets with this system."

"SmarTire worked closely with New Flyer in providing a TPMS system that meets the needs of the Chicago Transit Authority," says Robert Rudman, President and CEO of SmarTire. "Transit authorities are highly receptive to new vehicle safety technologies and represent an important sector of the transportation industry to SmarTire."

About New Flyer Industries Ltd.

New Flyer is headquartered in Winnipeg, Manitoba and has two additional production facilities in St. Cloud and Crookston, Minnesota. The company is the largest manufacturer of transit buses in North America. New Flyer's innovative low-floor and articulated buses are operated by public transit authorities in New York, Los Angeles, Vancouver, Atlanta, Seattle and many other major cities in the United States and Canada.

About SmarTire Systems Inc.

SmarTire develops and markets proprietary advanced tire pressure monitoring and technology systems for the global automotive and transportation industries. The U.S. Government, through the TREAD Act, has legislated that all new passenger vehicles must be equipped with tire monitoring systems beginning with a phased implementation in 2004. SmarTire is capitalizing on the rapidly emerging OEM and aftermarket opportunities. The company's vision is to become the preeminent provider of wireless sensing and control systems for vehicles worldwide. Incorporated in 1987, SmarTire has offices in North America and Europe.

A comprehensive investment profile regarding SmarTire Systems Inc. may be found online at www.hawkassociates.com/smartire/profile.htm.