SmarTire Signs U.K. Distribution Agreement: MetaSystem To Retail SmarTire Aftermarket Products

    RICHMOND, B.C.--Jan. 2, 2002--SmarTire Systems Inc. , a leading developer of tire pressure and temperature monitoring technology, today reported an agreement has been signed between SmarTire Europe and MetaSystem UK Ltd for the consumer distribution of its range of aftermarket tire pressure monitoring systems.
    SmarTire's products for passenger cars and light trucks will now be available at twenty-five MetaSystem retail outlets across the United Kingdom, with availability at additional outlets in the near future.
    Following initial orders from customers in Germany, France, Belgium and South Africa in 2001, this agreement represents the first distribution arrangement in the United Kingdom for SmarTire Europe. MetaSystem is a worldwide supplier of innovative vehicle, auto-technologies and remote home security systems. For more information on MetaSystem, visit the corporate website at www.metasystem.co.uk
    "MetaSystem is a highly regarded supplier of innovative, technological products for vehicles. The addition of SmarTire products to their line of vehicle safety items provides our Company with a high level of recognition and validation," said Ian Bateman, Managing Director of SmarTire Europe. "MetaSystem's retail distribution network is extensive and offers professional installation of SmarTire's aftermarket products for consumers."
    Industry statistics show that low air pressure is a frequent cause of tire failure. According to the Royal Automobile Club of the United Kingdom, 85% of pressure losses in tires are due to slow leaks or punctures, with the majority of sudden deflations or 'blow-outs' caused by running tires at incorrect pressure for extended periods. SmarTire's monitoring products provide an early warning of pressure loss and can improve vehicle safety, performance and fuel economy.
    Since 1987, SmarTire has pioneered the research and development of tire monitoring technology and has advocated that tire monitoring will become the next major breakthrough in vehicle safety following airbags and anti-lock brakes. With the new Transportation Recall Enhancement Accountability and Documentation (TREAD) Act, improved tire safety standards will require tire pressure warning systems on all new passenger cars and light trucks sold in the U.S. after 2003.

    SmarTire develops and markets technically advanced tire monitoring systems for the automotive and transportation industries. Additional information can be found at www.smartire.com

    Robert V. Rudman, C.A.
    President and Chief Executive 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 products, the size of the market, the ability of the Company to supply products and the reliance on distributors for retail sales and installation. 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, reliance on third party manufacturers to produce 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.