SmarTire Addresses Unauthorized Listing on Berlin Stock Exchange

OTCBB: SMTR

RICHMOND, BC, June 1 -- SmarTire Systems Inc. (OTCBB: SMTR) has learned that it is one of more than 200 U.S. publicly traded companies whose stock has been listed on the Berlin-Bremen Stock Exchange without the Company's prior knowledge, consent or authorization. SmarTire has instructed its U.S. attorneys to issue a demand letter to the officials at the Berlin-Bremen Stock Exchange requesting an immediate de-listing. In addition, the Company is considering its options to pursue appropriate remedies against the domestic and foreign brokerage firms responsible for this unauthorized listing.

The listings appear to be part of an effort by domestic and foreign brokers to circumvent the recent NASD and SEC restrictions against "naked short selling." Short selling is a trading practice whereby investors borrow stock from a broker to sell with the hope that the stock price will decline before they have to return the shares back to cover their position. However, naked shorting involves groups of people working together to manipulate the market by selling fictitious shares of stock in an effort to force a company's share price to go down. By listing the company's common stock on the Berlin-Bremen Stock Exchange, market manipulators attempt to benefit of an "arbitrage" loophole that none of the present regulations are designed to close.

Robert Rudman, President & CEO of SmarTire Systems Inc. stated: "We are totally surprised and alarmed to learn that a corporation's stock can be listed for trading on an international stock exchange without the prior knowledge or consent of the corporation itself. There are apparently hundreds of companies in the same situation as SmarTire. The only plausible explanation for this scheme is that certain individuals are using the arbitrage loophole to engage in naked short selling which could have significant and negative repercussions on the market price of our stock. We intend to follow the lead of other companies listed on the Berlin-Bremen Stock Exchange, all without prior authorization, in demanding both de-listing and evidence of who was ultimately behind the unauthorized listings."

Only purchases of SmarTire shares from the Over The Counter Bulletin Board (OTCBB) under the symbol, SMTR should be transacted. SmarTire shares traded on the Berlin-Bremen Stock Exchange or any other foreign exchange are not currently recognized by the Company.

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
  Chief Financial Officer

  Email: investor_relations@smartire.com
  Contact: Randy Halischuk
  1 (800) 982-2001