SmarTire Signs Co-Development, Marketing and Supply Agreements with Haldex

Contracts establish a global distribution channel for Company's commercial vehicle products

RICHMOND, BC, Oct. 14 -- SmarTire Systems Inc. (OTCBB: SMTR) announced today that it has signed a co-development and marketing agreement and a supply agreement with Haldex Brake Products Limited. Under the terms of these agreements, Haldex and SmarTire will engage in a joint development program to integrate SmarTire's tire pressure monitoring systems (TPMS) with Haldex's brake systems and create commercial vehicle products for marketing and resale by Haldex. These new, innovative products will be available for both OEM and aftermarket applications involving trucks, trailers and buses.

Haldex has an extensive customer base that includes many of the world's largest manufacturers of heavy commercial vehicles. The company is recognized as a leader in anti-lock braking systems (ABS) and electronic braking systems (EBS) designed to lower life cycle costs and to improve vehicle safety.

On a global basis, there are more than 21 million heavy trucks and trailers on the road today. A recent study by FleetAmerica revealed that 53% of commercial truck and trailer breakdowns are tire related and these incidents account for 56% of roadside repair costs. When vehicle downtime is included, the total cost of a tire related breakdown is very significant to an owner or fleet operator.

"SmarTire's extensive experience in the industrial and commercial vehicle TPMS industry made the Company a natural choice for us," stated Robert Else, President, Haldex Brake Products Ltd. "Offering tire pressure monitoring to our customers falls exactly in line with our mission to provide innovative and technically sophisticated solutions for increased performance and safety. SmarTire's technology is tested, proven and engineered specifically to work in the challenging commercial truck and trailer environment."

"Haldex provides SmarTire with an established worldwide distribution channel and an excellent track record in terms of introducing innovative technologies to the commercial trucking market," reported Robert Rudman, President and CEO of SmarTire. "The trucking industry is fully aware of the implications of the TREAD Act in the US and recognizes this new legislation is expected to be expanded to include commercial trucks, trailers and buses. This awareness has created an excellent opportunity for SmarTire and Haldex to play a leading role in the introduction and implementation of TPMS technology."

The Haldex group (www.haldex.com), with headquarters in Stockholm, Sweden is a provider of proprietary and innovative solutions to the global vehicle industry with emphasis on products related to vehicle dynamics, safety and environmental issues. In 2002, Haldex's worldwide sales were in excess of $840M.

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