SmarTire Applauds Final NHTSA Rules Requiring Tire Monitoring Systems

All light vehicles to be equipped with new tire safety technology by September 2007

RICHMOND, BC, Sept. 20 -- SmarTire Systems Inc. (OTCBB: SMTR) reported today that it applauds the rule amendment by the National Highway Traffic Safety Administration (NHTSA) that requires all new passenger cars and light vehicles being manufactured for sale in the USA to be equipped with tire pressure monitoring systems (TPMS) by September 2007. In addition, only direct measurement systems such as those developed by SmarTire will meet the more stringent NHTSA requirements.

President & Chief Executive Officer of SmarTire Systems Inc. stated "This latest NHTSA rulemaking represents a critical milestone in vehicle safety. Since 1987, our Company has been pioneering the development of direct measurement systems used in tire monitoring applications and the driving public deserves this higher standard of performance and reliability. The availability of these technically advanced tire safety systems has been unfortunately delayed but now the auto manufacturers must accelerate their implementation plans in order to meet these new NHTSA deadlines."

In November 2000, a U.S. federal transportation law was enacted to prevent the re-occurrence of automotive tragedies as experienced with Firestone equipped Ford sport utility vehicles. The Transportation, Recall, Enhancement, Accountability, and Documentation (TREAD) Act empowered NHTSA to improve vehicle safety through various initiatives including one regulation that requires the installation of warning systems in new vehicles to indicate when tires are significantly under-inflated. This U.S. mandate required 10% compliance for model year 2004 increasing to 100% compliance for model year 2007.

The NHTSA rulemaking also allowed for the use of either 'Direct' or 'Indirect' (ABS based) approaches to tire pressure monitoring. The direct measurement approach was determined to be technically superior but represented a greater cost solution. In August 2003, auto safety advocates scored a major victory when the U.S. Court of Appeals ordered NHTSA to rewrite the rulemaking and to disallow the use of indirect systems on the basis that they are too ineffective and placed drivers at risk. The new NHTSA rulemaking sets requirements that can currently only be met through the use of direct measurement systems.

The U.S. Court of Appeals decision resolved the dispute over indirect systems but effectively delayed the TPMS phase-in schedule by one year as NHTSA addressed the rewriting of the rulemaking. However, the new mandate is structured to prevent any further delay by requiring auto manufacturers to achieve 50% compliance for model year 2006, 90% for model year 2007 and total compliance for model year 2008.

A comprehensive investment profile regarding SmarTire Systems Inc. may be found online at www.hawkassociates.com/smartire/profile.htm

About SmarTire Systems

SmarTire develops and markets proprietary advanced tire pressure monitoring and technology systems for the global automotive and transportation industries. The U.S. Government, through the TREAD Act, originally mandated that all new passenger and light truck vehicles must be equipped with tire monitoring systems that began with a phased implementation in 2004. SmarTire is capitalizing on these rapidly emerging OEM and aftermarket opportunities. The company's vision is to become the preeminent provider of wireless sensing and control systems for vehicles worldwide. Incorporated in 1987, SmarTire has offices in North America and Europe.

Additional information about SmarTire Systems can be found on the website www.smartire.com. An online virtual investor kit containing SmarTire press releases, SEC filings, current price quotes, stock charts and other useful information for investors can be found at www.hawkmicrocaps.com. Investors may contact Randy Halischuk/Judy Leclercq at (800)-982-2001 or Frank Hawkins/Julie Marshall, Hawk Associates, Inc. at (305) 852-2383. Email: investor_relations@smartire.com or info@hawkassociates.com.