SmarTire's Asian Partner, Hyundai Autonet Launches Jointly Developed Product

New Tire Pressure Monitoring System Designed for Korean and Japanese Markets

RICHMOND, BC, Oct. 13 -- SmarTire Systems Inc. (OTCBB: SMTR) announced today that its Korean partner, Hyundai Autonet (HACO) has officially launched its jointly developed tire pressure monitoring system (TPMS) for the Korean and Japanese markets. This new product was introduced and demonstrated at the recent Korea Electronics Show 2004 held in Seoul. The innovative TPMS is targeted at both the new car and the aftermarket customers in Korea and Japan. It is the culmination of a joint development project between SmarTire and HACO that was announced in February 2003. Under the terms of the agreement, HACO is permitted to market and sell the system in Korea while SmarTire retains the sales and marketing rights to Japan and the rest of world.

The jointly developed system is designed to meet the stringent radio frequency regulatory standards of Korea and Japan (ARIB STD-T67) that severely limits the signal strength allowed for the sensors to transmit tire data. For the new car market, the SmarTire / HACO TPMS system includes in-wheel mounted sensors and a receiver module that may be integrated within the vehicle. In the aftermarket configuration, the receiver is integrated into a single unit with an easy to use digital display.

Competitive TPMS solutions in the Korean and Japanese market currently require separate antennas and support harnesses to be installed in each wheel well to ensure reliable data reception. This approach translates into significant costs for the automaker. The requirement of installing antennas in each wheel well also severely limits the aftermarket potential for these systems.

"This launch is the end result of a cooperative effort by SmarTire and HACO that started many months ago to address the important Korean and Japanese passenger car and commercial vehicle markets," says Robert Rudman, President and CEO of SmarTire. "Extensive research and development was required to design and manufacture a TPMS system compliant with the strict regulations for radio frequency and the final product introduced this week in Korea represents a major milestone for both of our companies."

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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.