SmarTire Announces SmartWave(TM) Brand for Wireless GateWay Product Line

RICHMOND, British Columbia, Dec. 5, 2005 -- SmarTire Systems Inc. (BULLETIN BOARD: SMTR) announced today that its new wireless gateway product line will carry the SmartWave(TM) brand.

The SmartWave brand will apply to all products developed under SmarTire's wireless gateway architecture. Under the SmartWave brand, the company will initially introduce three versions of its tire pressure and monitoring systems to meet the varying needs of fleet customers. The first version will provide basic safety features, while the second will include additional functions that enable the fleet to achieve savings in fuel and tire costs. The third product will provide off-vehicle communications to the fleets' service centers. It will also provide additional information such as tire history, and diagnostic and prognostic information that will further increase the value of the original equipment manufacturers (OEMs) products to their customers. SmarTire is evaluating additional wireless sensing and control applications that will use the same architecture to provide value where traditional wired solutions are not competitive or are difficult to implement.

"SmartWave creates new ways for OEMs and their dealer channels to increase the value of their products to their customers," said Al Kozak, SmarTire President and CEO. "SmartWave products will enable the OEM's customers to achieve a higher return on their investments in fleet vehicles and a higher level of safety for their drivers."

Dana's Commercial Vehicle Systems Group recently signed an agreement to market and sell SmarTire's tire pressure and temperature monitoring systems to the commercial truck, bus and RV markets throughout North America, Mexico, Australia and New Zealand. Dana is a Tier 1 leader in the design and manufacture of commercial vehicle components for medium- and heavy-duty vehicles. Dana provides a full range of highly engineered products including axles, drive shafts, suspension, wheel-end and tire management products.

Kozak added, "Our plans for implementing additional functions into the SmartWave architecture fit closely with Dana's strategy of tire management and advanced system solutions for commercial vehicles. Together with Dana, we intend to develop additional wireless sensing and control applications that will increase the value of Dana's products to its OEM customers."

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.

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