SmarTire Signs Product Distribution Agreement with Redmer Industries

Redmer to focus on automotive and recreational vehicle manufacturers and aftermarket

RICHMOND, BC, Oct. 18 -- SmarTire Systems Inc. (OTCBB: SMTR) announced today that Redmer Industries has become a distributor of SmarTire's innovative tire pressure monitoring systems (TPMS) in the US. Redmer Industries is a privately held company based in Charlotte, Michigan with an extensive background in electronic parts sales and supply chain management to original equipment manufacturers (OEM) and to the aftermarket. In addition, Redmer actively supplies wheel and tire components to the heavy truck, recreational and specialty vehicle markets.

Under the terms of the agreement, Redmer will undertake sales, marketing and business development initiatives in the automotive, trucking and recreational vehicle markets in the US. Redmer will also establish a dealer network in its territory to sell and service SmarTire products.

Robert Rudman, President and CEO of SmarTire Systems Inc., said, "Redmer Industries has built a solid business and reputation in supplying innovative products to the automotive, trucking and recreational vehicle markets. The company has long established relationships in these key markets and we are looking forward to leveraging Redmer's experience and success to speed market entry and product acceptance. Their expertise in supply chain management will also be invaluable as we become more involved in the OEM market."

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, has legislated that all new passenger vehicles must be equipped with tire monitoring systems beginning with a phased implementation in 2004. SmarTire is capitalizing on the 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.

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

Additional information about SmarTire Systems can be found on the website www.smartire.com.