SmarTire Ramps Up Production

    RICHMOND, B.C.--April 16, 2001--SmarTire Systems Inc. announced today the Company is ramping up production of its complete line of new tire monitoring products.
    After successful completion of vigorous environmental and durability tests and initial production runs, SmarTire is scaling up production of its complete family of Generation II products for passenger cars, light trucks and sport utility vehicles. The Company recently produced and delivered its first shipments of the new tire monitoring systems to satisfy initial purchase orders from Aston Martin and Morgan.
    The family of new SmarTire products features leading-edge sensor and radio frequency technology coupled with modular options for in-vehicle display. The sensor/transmitter contains a completely new Application Specific Integrated Sensor (ASIS). The ASIS combines the sensing element and numerous electronic components into a single chip, significantly reducing transmitter size and weight while improving performance. Two versions of the SmarTire transmitter will be produced providing different installation options, a strap mount featuring a quick attachment band or an adjustable valve stem mount for specific wheel applications.
    For in-vehicle display, SmarTire's new designs offer numerous choices including a Basic Display providing an early warning of low tire pressure and a Full Function Display offering detailed digital tire pressure and temperature information for up to 20 wheel positions. Other displays and accessories will be produced for specific customer applications and aftermarket installations.
    "SmarTire's new products represent excellent design and functionality. The modular design also facilitates tailored displays for dealer accessory and port of entry installation programs," stated Kevin Carlson, SmarTire's Chief Financial Officer and Managing Director. "Each product has successfully completed extensive engineering and manufacturing tests. We are satisfied with the outcome and are scheduling increased production of our new products."
    Since 1987, SmarTire has pioneered the research and development of tire monitoring technology and advocated that tire monitoring will become the next major breakthrough in vehicle safety following airbags and anti-lock brakes. With recent amendments to the Transportation Recall Enhancement Accountability and Documentation (TREAD) Act, improved tire safety standards will now be legislated and will require tire pressure warning systems on all new vehicles by 2003. The National Highway Traffic Safety Administration (NHTSA) is the governing legislative body that will define the terms of the TREAD Act and modernize the 30-year-old tire safety law. It is anticipated NHTSA will release a draft proposal of the new legislation for industry review prior to the November written deadline.
    "Proper tire pressure maintenance can lead to safer driving, improved fuel economy and better vehicle handling," stated Carlson. "Our new products can provide accurate real time tire pressure and temperature information that can contribute effectively toward eliminating tire problems related to under-inflation."
    Other developments at SmarTire include an expanded product development and marketing program for the commercial vehicle market involving both original equipment manufacturers and aftermarket customers. As a result of an Agreement on January 12, 2001 with its strategic partner, TRW Inc., SmarTire now has the exclusive license to manufacture and sell tire monitoring systems to the original equipment manufacturers of most medium and heavy duty trucks.
    SmarTire develops and markets the world's most technically advanced tire monitoring systems for all sectors of automotive and transportation industries. Additional information can be found at www.smartire.com

Robert V. Rudman, C.A. President and Chief Executive Officer

    Except for this historical information contained herein, this news release contains forward looking statements that involve risks and uncertainties, including the impact of competitive products and pricing and general economic conditions as they affect the Company's customers. Actual results and developments may therefore diaterially from those described in this release.