SmarTire Signs Agreement with Motor Coach Industries International

Leading manufacturer of intercity coaches to purchase SmarTire monitoring systems

RICHMOND, BC, Feb. 28 -- SmarTire Systems Inc. (OTCBB: SMTR) announced today that it has signed a letter agreement with Motor Coach Industries International (MCI) to purchase SmarTire's monitoring systems. MCI is the leading designer, manufacturer and marketer of intercity coaches and coach-related parts and services for the North American market.

The agreement covers both aftermarket installations on existing MCI coaches and original equipment installations on at least one of MCI's production lines in 2005. The agreement also includes the development of a cooperative joint marketing program between the two companies. MCI currently produces approximately 1400 new coaches per year and services tens of thousands of existing coaches on the road today.

"MCI has built a long standing reputation for being the first to market with innovative technology," says Erwin Bartz, VP of Business Development at SmarTire. "By implementing SmarTire's active tire monitoring systems, MCI has once again taken the lead in utilizing advanced technology to improve both the safety and reliability of their coaches. MCI service centers all across North America are well positioned to be leading providers of tire monitoring systems to the coaches they service and support nationwide.

The SmarTire for Buses system provides real-time tire pressure and temperature monitoring and gives the driver an early warning of a tire related problem. The SmarTire system can be installed as standard equipment on new buses or retrofitted to existing buses.

About Motor Coach Industries International

With headquarters in Schaumburg, Illinois, and sales and service centers across the U.S. and Canada, MCI manufactures coaches for tour, charter, line-haul and public sector markets and leads the market with the industry's two best-selling coaches: the MCI(R) J4500 and the MCI(R) D4500.

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. 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.