SmarTire Well Positioned for Fiscal 2004

RICHMOND, BC, July 30 -- SmarTire Systems Inc. (SMTR: OTCBB) announces that it is aggressively pursuing worldwide opportunities for its tire monitoring products as the Company enters its new fiscal year on August 1st. In order to support these opportunities, SmarTire is also taking steps to strengthen and expand the depth of its human resources.

"Despite the challenges experienced during the past twelve months, I am extremely pleased with the Company's current position as we prepare to enter our new fiscal year," says Robert Rudman, President and CEO of SmarTire. "The Company did achieve several significant product and business milestones as well as sales and marketing objectives. We are also very pleased to have arranged a $15M equity line of credit to assure our partners, suppliers and potential customers that we have the resources to aggressively pursue opportunities in the passenger car, motorcycle, industrial, commercial and recreational vehicle markets worldwide."

One of the funds participating in SmarTire's most recent convertible debenture financing is Palisades Master Fund, LP. Andy Reckles, General Partner of the fund stated: "With the Federal mandate requiring tire monitoring systems for automobiles in the United States now in place, we at the Palisades Master Fund continue to believe very strongly in SmarTire's market potential, industry leading technology and experienced management team."

SmarTire Systems Inc. develops and markets proprietary tire monitoring systems for the transportation industry worldwide. Incorporated in 1987, SmarTire is a public company with offices in North America and Europe. Additional information can be found at www.smartire.com.

  Jeff Finkelstein

  Jeff Finkelstein, C.A.
  Chief Financial Officer

  SAFE HARBOUR STATEMENT

Statements in this press release which are not purely historical are forward-looking statements, including any statements regarding beliefs, plans, expectations or intentions regarding the future. Forward-looking statements include those regarding SmarTire's intention to aggressively pursue worldwide opportunities for its tire monitoring products, its worldwide market potential, and its potential to become an industry leader over the next two years.

It is important to note that SmarTire's actual results and outcomes may differ materially from those contained in the forward-looking statements contained in this press release. Factors that could cause actual results to differ materially include, but are not limited to, risks and uncertainties such as: the continued financing of our operations; the ability of SmarTire to effect draw downs under the equity line of credit facility; and the overall success of SmarTire and its subsidiaries in general. In particular, there is no assurance that any registration statement in connection with the equity line of credit facility, if filed, will be declared effective by the Securities and Exchange Commission, or that the trading volume of the Company's common stock will increase to a level sufficient to enable us to meet the minimum draw down level under the equity line of credit.

Although we believe that the beliefs, plans, expectations and intentions contained in this press release are reasonable, there can be no assurance that such beliefs, plans, expectations or intentions will prove to be accurate. Readers should refer to the risk disclosures outlined in SmarTire's registration statement on Form SB-2 filed with the Securities and Exchange Commission on June 4, 2003.

  Email: investor_relations@smartire.com
  Contact: Judy Leclercq
  1.800.982.2001