Amerityre to Develop Retreads for Medium Commercial Truck Tires

Polyurethane Compound and Retreading Process Can Offer Industry Savings

BOULDER CITY, Nev., Sept. 29 -- Amerityre Corporation (BULLETIN BOARD: AMTY) announced today it has begun development of a polyurethane tire compound and manufacturing process for retreading medium commercial truck tires with a polyurethane elastomer tread compound. Amerityre believes the retreading process, which has been successfully developed and tested in passenger car tire applications, is a natural fit for the medium commercial truck tire used by tens of thousands of over-the-road truck fleets worldwide.

"The benefits of polyurethane elastomer as a tire compound are evident," said Richard Steinke, President and CEO of Amerityre. "In both endurance and high speed testing our polyurethane compounds have run substantially cooler than rubber. In addition, these compounds have outperformed comparable rubber compounds in both accelerated heat aging and ozone testing," he added. All tests have been conducted by an independent laboratory in accordance with applicable FMVSS or ASTM test standards.

The retreading process developed by Amerityre involves applying the polyurethane tread compound to the rubber tire casing so that the tread locks "seemlessly" to the tire casing without pressure or vulcanization. "Retreading has historically been an effective way for the trucking industry to save money. We believe that using our revolutionary retreading process is going to provide additional money saving advantages to both the trucking and tire retread industry," Steinke said.

The retread development is expected to be completed by the end of the year and another 3 months have been allocated for industry testing and feedback. Following successful completion of industry testing, Amerityre will look to market the manufacturing technology directly to the retreading industry. Based on statistics published by the Tire Retread Information Bureau, of the nearly 37 million replacement tires purchased by truck fleets in the U.S. and Canada during 2004, nearly half were retreads. It has been estimated that the cost of a retreaded tire is approximately 30 to 50% less than the cost of a new tire, while offering comparable safety and comfort.

The retread development program is only one of many polyurethane tire projects currently under development by Amerityre for highway and industrial applications. Amerityre uses proprietary technology and patented methods and processes to manufacture tires from liquid elastomers. Amerityre's technology is significant because it provides for tires to be produced quickly and less expensively than traditional rubber tires and the polyurethane compounds it has developed have significant performance benefits over rubber compounds.