SmarTire Enters Chinese Market

Chinese distributors account for approximately 40% of total Q4 aftermarket product sales

SMTR: OTCBB

RICHMOND, BC, Aug. 7 -- SmarTire Systems Inc. (OTCBB: SMTR) announced today that it has seen increased demand for its industry leading aftermarket tire pressure monitoring products in the Chinese market. Shipments to Chinese distributors accounted for approximately 40% of global aftermarket sales in Q4, 2003 versus approximately 15% in Q3, 2003.

"We are very pleased with the initial success that our products have enjoyed in China," says Robert Rudman, President and CEO of SmarTire. "Our Chinese distributors have demonstrated strong commitment and support for our tire pressure monitoring systems. The Chinese distribution network is a key component of SmarTire's emerging global sales strategy."

In 2002, almost 3.25 million vehicles were sold in China. It is estimated that the Chinese market will reach 5 million vehicles a year by 2020, making it third in the world after the US and Japan. (Source: BBC News World Edition January 31, 2003, "China car sales soar")

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.

  Al Kozak

  Al Kozak
  Chief Operating 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. Statements in this document that are forward looking include the statement that the Chinese distribution network is a key component of SmarTire's emerging global sales strategy. The estimated number of vehicles sold in China by the year 2020 is based on a number of projections, any one of which may be wrong and which may result in far fewer vehicles being sold there in any or all years until 2020. There can be no assurance that any future or additional of the Company's products will be sold in China. Actual Company sales in China and in all other countries are affected by many risks and factors, for more detail see Risk Factors in the Company's last annual report on 10-KSB filed on Edgar.

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