SmarTire Achieves Technical Milestone with its Commercial Vehicle System

New receiver enables integration of tire monitoring systems with commercial vehicle architecture

www.smartire.com OTCBB: SMTR

RICHMOND, BC, May 17 -- SmarTire Systems Inc. (OTCBB: SMTR) announced today that it has completed the development of a new receiver allowing for the manufacturing of its tire pressure monitoring systems (TPMS) for commercial vehicles to commence in July 2004. This new TPMS includes a highly sensitive, weatherproof, controller area network (CAN) SAE J1939 chassis mounted receiver designed to meet the stringent requirements of original equipment manufacturers (OEM). SAE J1939 is the most widely used communication standard in commercial vehicles.

The new receiver combined with SmarTire's high pressure sensors, creates a technically advanced TPMS targeted directly at manufacturers of commercial trucks, buses, agricultural, construction and recreational vehicles. Evaluation systems are currently being tested by several OEMs.

"This system is not an adaptation of a passenger car product but has been designed specifically to satisfy the demands of the commercial vehicle market," stated Erwin Bartz, Vice President of Business Development of SmarTire. "This TPMS integrates effectively with in-vehicle displays and monitors both tire pressure and temperature. The new system allows commercial vehicles to achieve improved fuel economy and tire life in addition to minimizing tire fires and unscheduled downtime due to tire problems."

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

  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 that are forward looking include the new system allows commercial vehicles to achieve improved fuel economy and tire life in addition to minimizing tire fires and unscheduled downtime due to tire problems and that the receiver will commence manufacturing in July 2004. Readers should also refer to the risk disclosures outlined in the Company's annual report on Form 10-KSB for the last completed fiscal year filed with the SEC.

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