SmarTire Announces Manufacturing Agreement With Vansco

Current Relationship With Vansco Expanded

RICHMOND, British Columbia, Nov. 21 -- SmarTire Systems Inc. (BULLETIN BOARD: SMTR) announced today that it has entered into a manufacturing agreement with Vansco Electronics LP. Under the agreement, Vansco will manufacture key subsystems for SmarTire's wireless gateway family of products. SmarTire also announced the termination of its contract manufacturing agreement with Hyundai Autonet Company, Ltd. ("HACO") in Korea, which was terminated as a result of HACO's acquisition by Hyundai.

SmarTire President and CEO Al Kozak said, "SmarTire has expanded its relationship with Vansco, co-developer of our wireless gateway receiver. The product is manufactured in Vansco's primary facility in Winnipeg, Canada, where we have valuable support from Vansco's development and test engineers. Under the new agreement, Vansco will manufacture our tire transmitter products in its recently acquired Morton, Ill., facility, which is registered to TS16949 quality standards and has a long record of producing reliable sensors and related products for vehicle manufacturers. Volume shipments of products from Vansco will commence this December and we will complete the transition with no interruption of supply to any of our customers."

Vansco Vice President Andre Granger said, "We are pleased to participate in SmarTire's business as a co-developer and manufacturer. By participating at the development and manufacturing levels, we are able to provide a high level of support to SmarTire and its customers. We look forward to building and enhancing a positive, long-term relationship with SmarTire."

About Vansco Electronics LP

Vansco Electronics LP specializes in the design and manufacturing of electronic, electro-mechanical and electro-hydraulic controls and instrumentation. The company offers engineering design expertise in system integration, hardware, software, wire harness and electronics packaging. Vansco was founded in 1978 by Ed and Terry Van Humbeck in Winnipeg, Canada. Focused on the global heavy equipment market, it has grown to more than 1000 employees and more than $200 million in sales. With the recent addition of the Morton, Ill., plant, Vansco will support its customer base from three North American and a more recent acquisition in Forssa, Finland. Vansco provides global sales, applications engineering, design, manufacturing and service support. In 2004, Vansco was acquired by Kilmer Capital Partners and Borealis Private Equity. Vansco serves a strong customer portfolio of top- tier, original equipment manufacturers ("OEMs"), many which are international leaders in their respective markets.

  For more information, visit http://www.vansco.ca/ .

  About SmarTire Systems Inc.

SmarTire develops and markets proprietary advanced wireless sensing and control systems worldwide, including tire pressure monitoring systems for global vehicle markets. 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. This has raised the awareness for tire monitoring throughout the vehicle industry, and SmarTire is capitalizing on the rapidly emerging OEM and aftermarket opportunities. SmarTire has offices in North America and Europe.