SmarTire Systems Announces $6.4 Million in Financing; Completion of Financing Arrangements Allows Company to Focus on Expanding Operations

    RICHMOND, British Columbia--Nov. 21, 2002-- SmarTire Systems Inc. , a leading developer of tire pressure and temperature monitoring technology, has strengthened its financial position with the completion of three private placements totaling $6.4 million (U.S.). Since September 26, 2002, $1.184 million has been released to the Company. A total of $5.2 million is subject to registration. The financings include a $1.0 million placement of common shares and warrants with European investors, $400,000 in convertible debentures and a $5.0 million facility for the placement of common shares. Terms of this financing will be released in the Company's 8-K filing.
    Proceeds from these private placements will fund ongoing operations, purchase inventory to satisfy current and projected product demand and retire debt. Prior to the completion of these financings, SmarTire terminated its relationship with the Company's financial advisory firm, H.C. Wainwright & Co., Inc.
    "With implementation of the TREAD Act less than a year away, we have been extremely busy formalizing corporate relationships, completing supply agreements and quoting for new business," says Robert Rudman, President and Chief Executive Officer of SmarTire. "With our improved financial position we are better able to address the anticipated demand for tire pressure monitoring already evident in North America and Europe and beginning to emerge in the Asian markets."
    SmarTire is a pioneer and market leader in the development of direct measurement tire monitoring technology for all sectors of the automotive and transportation industries. With the National Highway Traffic Safety Administration (NHTSA) rulemaking that requires the installation of tire pressure monitoring systems in all passenger vehicles and light trucks beginning November 1, 2003, there is substantial market potential for SmarTire technologies and products.
    Incorporated in 1987, SmarTire is a public company with offices in North America and the United Kingdom. Additional information can be found at www.smartire.com.

    Jeff Finkelstein C.A., Chief Financial Officer