SmarTire Begins European Shipment of New Products

    RICHMOND, B.C.--Aug. 2, 2001--SmarTire Systems Inc. , a global leader in tire pressure and temperature monitoring systems, reported today it has secured initial orders with customers in Germany, France, Belgium and South Africa for its GenII aftermarket products.
    The Company has commenced shipment of products for distribution into these automotive and tire retail channels.
    Featuring leading-edge sensor and radio frequency technology and modular options for in-vehicle display, SmarTire's GenII aftermarket products offer a tire monitoring solution for existing vehicles. The sensor/transmitter contains a completely new Application Specific Integrated Sensor (ASIS) that combines the sensing element and numerous electronic components into a single, highly robust chip. Two versions of the SmarTire transmitter are available 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 designs include 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 multiple wheel positions. Other displays and accessories will be produced for specific customer applications and aftermarket installations. Aftermarket products will be sold business to business to distributors/dealers and other independent tire and automotive retailers.
    Ian Bateman, Managing Director of SmarTire Europe said, "Our GenII products provide a wireless tire monitoring solution for installation at the port of entry, automotive dealer and aftermarket retailer. Our business-to-business marketing strategy along with improved brand and corporate awareness in Europe has resulted in initial orders from distributors. SmarTire is well positioned with new innovative products, a major sales and distribution operation in Europe plus dedicated engineering, sales and management groups in North America."
    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. 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 differ materially from those described in this release.