SmarTire Reports Q3 Financial Results

RICHMOND, British Columbia, Canada, June 17 -- SmarTire Systems Inc. (BULLETIN BOARD: SMTR) , a provider of active tire pressure and temperature monitoring systems for the global commercial or truck, bus, recreational vehicle, and off highway vehicle markets, announced today that revenue for the third quarter of FY 2008 decreased to $794,373 from $933,113 in the third quarter of FY 2007 and revenue for the nine months ending April 30, 2008 decreased to $2,458,247 from $2,731,557 for the nine months ended April 30, 2007.

SmarTire's net loss for Q3 2008 was $7.8 million or ($0.00) per share compared to a net loss of $4.0 million or ($0.01) per share in Q3 2007. Net loss for the nine months ended April 30, 2008 was $21.4 million or ($0.02) per share as compared to a net loss of $18.4 million or ($0.06) per share for the nine months ended April 30, 2007.

In Q3 2008, SmarTire's net loss from operations increased to $1.5 million from $1.2 million in Q3 2007. Net loss from operations for the nine months ended April 30, 2008 decreased to $4.0 million from $5.6 million for the nine months ended April 30, 2007. SmarTire's net other expenses increased to $6.3 million in Q3 2008 from $2.8 million in the same period of 2007. Net other expenses increased to $17.3 million for the nine months ended April 30, 2008 from $9.0 million for the nine months ended April 30, 2007, primarily due to an increase in non-cash interest and financing charges. The higher non-cash charges in 2008 were offset by $1.5 million of other income resulting from settlement of a patent infringement lawsuit in 2008.

"We continue to address our core operating costs and move toward implementation with our OEM customers, both in line with our goal of achieving profitability as quickly as possible," said David Warkentin, President and Chief Executive Officer in announcing results. "Additionally, we were pleased to settle our patent infringement dispute with Siemens VDO during the quarter. We also continue to seek resolution of our pending case with Schrader Bridgeport International. The previously announced trial date has been delayed as we await rulings on summary judgment hearings from the court."

Detailed operating results are available in the Form 10-QSB, filed with the SEC, available online at: http://www.sec.gov/. The consolidated financial statements and all financial information contained in this release are stated in U.S. dollars and are prepared in accordance with U.S. Generally Accepted Accounting Principles (GAAP).

About SmarTire

SmarTire develops and markets proprietary advanced wireless sensing and control systems worldwide under the SmartWave(TM) trademark. The company has invested more than $100 million in R&D for its patented tire monitoring technology. It developed numerous patent-protected wireless technologies and has advanced tire monitoring solutions since 1987.