SmarTire Strengthens Competitive Position with Granting of New Patent

Innovative multi-mount technology provides solutions to product installation and servicing issues

RICHMOND, BC, Nov. 29 -- SmarTire Systems Inc. (OTCBB: SMTR) announced today that it has been granted a U.S. patent protecting its innovative multi-mount technology for the installation of sensors in tire pressure monitoring systems (TPMS). The patented multi-mount system has major strategic importance for SmarTire as it is the only Company that can offer automakers this flexible solution that addresses their needs for new vehicle installation in addition to satisfying after-sales servicing requirements.

"The multi-mount technology enables a common sensor to be used to satisfy a variety of vehicle platforms using different mounting methods such as strap, valve or bonded," says Kian Sheikh-Bahaie, Senior Mechanical Designer at SmarTire. "This technology offers a number of benefits including a single solution regardless of wheel design and the ability to use aftermarket wheels without disabling the original TPMS. Smaller automakers can also take advantage of the economies of scale and speed to market by enabling them to use a common sensor."

"This patent represents a significant milestone as it expands SmarTire's intellectual property portfolio at a critical time in the development of the TPMS industry," says Robert Rudman, President and CEO of SmarTire. "Now that the Tread Act has been finalized in the U.S. and the automakers are now required to install tire monitoring in their vehicles, one crucial issue that has not been adequately addressed by the industry is the installation and servicing of TPMS. SmarTire has developed and now patented a unique sensor mounting technology that satisfies the diverse implications that arise during installation and servicing of the system over the life of the vehicle."

With the Tread Act now requiring TPMS on all new vehicles, an area of concern is after-sales servicing especially involving alternate tires and/or wheels. As identified by Stephen McDonald, Vice President, Government Affairs for the Specialty Equipment Market Association, the North American aftermarket tires and wheels industry is valued at $3 billion per year. The TREAD Act will still apply to alternate tires and wheels if these products are installed prior to a vehicle's first sale. The ability to reinstall a vehicle's tire sensors to alternate wheels using SmarTire's patented system will enable the dealership to remain in compliance with the Tread Act.

About SmarTire Systems Inc.

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.