SmarTire Systems Signs Contract with Hyundai Autonet

Leading automotive electronics supplier to spearhead distribution of SmarTire products in Korea

RICHMOND, BC, Feb. 10 -- SmarTire Systems Inc. , a leading developer of tire pressure and temperature monitoring technology, today announced that it has signed an Agreement with Hyundai Autonet Company, Ltd (HACO), an established Korean automotive electronics supplier. Under this Agreement, SmarTire and HACO will co-develop, manufacture and distribute tire monitoring products to Korean original equipment vehicle manufacturers and the automotive aftermarket in Korea.

The agreement includes an initial US$300,000 contribution from HACO for engineering changes to modify SmarTire's products for the Korean market and the development of technology required to meet specific needs of the Korean marketplace. SmarTire expects to receive an ongoing revenue stream through the sales of proprietary components to HACO beginning in early 2004.

HACO, originally founded in January 1985 as Hyundai Automotive Electronics Division, is a subsidiary of the Hyundai Group, one of Korea's largest conglomerate companies. HACO is a world-class automotive electronics manufacturer located in Kyoungki, Korea and is a major supplier of automotive electronics in Asia. Business areas include car audio systems, in-vehicle audio/visual entertainment systems, navigation systems, airbag ECU and powertrain electronics. Annual sales exceed US$520 million with more than 1,200 employees. Major customers include Hyundai Motor Company, KIA Motors Corporation, Ssangyong Motor Company and other international automobile manufacturers.

"This partnership with HACO represents another critical milestone for the international distribution of SmarTire products," says Robert Rudman, President and Chief Executive Officer of SmarTire Systems Inc. "Working with a world-class automotive supplier like HACO will facilitate the introduction of SmarTire tire monitoring technology into the fast-growing Korean automobile marketplace."

"Tire pressure monitoring systems (TPMS) are very important products for driver safety. The use of TPMS will increase sharply in the automobile market around the world," says Seok-Jin Kang, President and Chief Executive Officer of HACO. "Through this partnership with SmarTire, HACO can develop and market products to lead the Korean TPMS marketplace."

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 U.S. 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, in North America, Europe, and Asia.

Incorporated in 1987, SmarTire is a public company with offices in Canada and the United Kingdom. Additional information can be found at www.smartire.com.

  "Al Kozak"

  Al Kozak
  Chief Operating 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, the anticipated demand for tire monitoring technology, sales of SmarTire's products and technology to original equipment manufacturers, the size of the market, the impact and scope of the new United States legislation, and the technical uncertainty of future products. 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, and specific risks such as the uncertainty of the requirements demanded and timing specified by U.S. government, reliance on third party manufacturers to produce SmarTire products and technology, and, the Company's ability to source product components in a 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.

  Email: public_relations@smartire.com
  Contact: Susan Mader
  1.800.982.2001

Source: SmarTire Systems Inc.

CONTACT: Email: public_relations@smartire.com, Contact: Susan Mader,
1-800-982-2001