SmarTire Signs Development Agreement With Vansco Electronics

New product targets commercial truck, bus, agricultural, construction and RV markets

OTCBB: SMTR

RICHMOND, BC, Sept. 23 -- SmarTire Systems Inc. (OTCBB: SMTR) announced today that it has signed a joint development agreement with Vansco Electronics Ltd. ("Vansco"). This agreement provides for the merging of Vansco's vehicle communication expertise with SmarTire's proven radio frequency (RF) technology to create a high sensitivity, weatherproof, controller area network (CAN) chassis mounted receiver. CAN is the most widely used communication standard in vehicles today allowing for multiplexing, receiving and transmitting of signals from various sources.

When combined with SmarTire's high pressure sensors, this joint development effort will result in a new tire pressure monitoring system (TPMS) targeted directly at original equipment manufacturers (OEMs) of commercial trucks, buses, agricultural, construction and recreational vehicles. The new TPMS is expected to be launched during the first calendar quarter of 2004.

As part of the agreement, Vansco will market the product directly to its customers in the agricultural vehicle sector and on a case-by-case basis to the commercial truck, bus and construction industries. SmarTire will market the jointly developed product to the OEM commercial truck and recreational vehicle markets.

"The development of this innovative product will be the result of extensive industry input," stated Erwin Bartz, Vice President of Business Development of SmarTire. "It will be designed to offer OEM customers the ability to seamlessly integrate SmarTire TPMS into their vehicles while utilizing existing in-vehicle displays. This product will also allow Vansco to effectively introduce TPMS to its receptive base of OEM customers."

Vansco is a Canadian private corporation with its head office located in Winnipeg, Manitoba. It has a manufacturing facility in Valley City, North Dakota and a sales office in Brussels, Belgium. Vansco is considered one of Manitoba's fastest growing companies with annual sales revenues of $100 million CDN. Vansco provides creative electronic and electro-hydraulic solutions and products for heavy equipment OEMs. The company has expertise in electronic displays, controllers, electromechanical devices and electro- hydraulic controls. Additional information can be found at www.vansco.ca.

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.

  "Robert Rudman"

  Robert Rudman President & Chief Executive Officer