Amerityre Enters Accord to Sell Manufacturing Systems and to License Technology in Developing Countries; Sri Lanka Among Initial Prospects

BOULDER CITY, Nev., July 15 -- Amerityre Corporation (BULLETIN BOARD: AMTY) . Amerityre Corporation has entered into an agreement with International Research and Development ("IRD"), La Jolla, California, to introduce Amerityre's polyurethane tire manufacturing technology in developing countries around the world. The term of the Agreement is for three years and may be automatically renewed for successive three year terms.

According to Richard Steinke, Amerityre's President and Chief Executive Officer, IRD will acquire from Amerityre the specialized manufacturing equipment necessary to produce a complete line of Flatfree(TM) polyurethane tires and resell the equipment to qualified manufacturing groups within several of the 104 countries IRD currently distributes aftermarket automotive parts. Amerityre will license the manufacturing groups with the right to manufacture, market and distribute those products within specified geographical boundaries. Once the manufacturing equipment has been installed and is ready to operate, Amerityre will sell directly to the manufacturing groups the proprietary chemical system needed to produce the tires.

In connection with the agreement, Anthony Renda, the president of IRD, stated that, "IRD's goal is to present a 'turn key' type manufacturing opportunity in several regions throughout the world where Amerityre's Flatfree(TM) tires technology is really needed. Plants established in those countries or regions will initially produce the most popular tires used in the given region. We've contacted several of our dealers throughout the world and many of them have expressed an interest in Amerityre's manufacturing technology. We think this is a great opportunity to expend Amerityre's technology globally."

At the invitation of IRD, Sri Lanka is one of the first of such countries that has sent a business group to Amerityre to see the manufacturing technology first hand. On June 24th, a delegation headed by Pradeed Gunawardana, the Counsel General for Sri Lanka, toured Amerityre's manufacturing facility in Boulder City, Nevada. In connection with the visit, local officials commemorated the day by proclaiming it "Sri Lanka Day."

Established in 1995, Amerityre manufactures Flatfree(TM) tires for bicycles, wheelbarrows, hand trucks and lawn and garden equipment, riding lawn mowers and golf cars from closed-cell polyurethane foam using patented and other proprietary technologies. Amerityre has recently developed new technology to manufacture a passenger car tire from polyurethane elastomer that complies with Federal Motor Vehicle Safety Standard No. 109 for new pneumatic tires.

For more information on Amerityre, visit its website at www.amerityre.com.

This release may contain statements that are forward looking. Such statements are made based upon current expectations that are subject to risk and uncertainty. Amerityre does not undertake to update forward-looking statements in this news release to reflect actual results of and changes in assumptions or changes in other factors affecting such forward-looking information. Specifically, the sale of specialized production equipment and chemical systems coupled with the licensing of manufacturing rights to third-parties using Amerityre's technologies is expected by management to produce additional revenues and increase worldwide recognition of Amerityre's products. However, at this date Amerityre has not entered into any such agreements with parties introduced by IRD and, even should such agreements be reached, sales of chemical systems by Amerityre can not begin until the production equipment is delivered and installed which management expects to take at least nine to twelve months from the signing of the agreements.