SmarTire to Supply Prevost With Tire Pressure and Temperature Monitoring System for Buses

Monitoring System to Become Standard on Prevost H-Series Buses

RICHMOND, British Columbia, Jan. 25 -- SmarTire Systems Inc. (BULLETIN BOARD: SMTR) announced today that Prevost has selected the company to supply tire pressure monitoring systems (TPMS) that also monitor tire temperature on its buses. The TPMS will come standard on Prevost's H-series bus.

Dave Warkentin, vice president of sales and marketing of SmarTire, said, "We are pleased that Prevost has selected SmarTire as a supplier. With more than 10,000 vehicles on the road today, Prevost is recognized as one of the leaders in its industry. The company is owned by Volvo Bus Corporation, the world's second-largest bus manufacturer. We have already begun shipping TPMS to Prevost, and soon most Prevost H-series buses will be equipped with our TPMS. At SmarTire, vehicle safety is paramount, and this order demonstrates that Prevost also shares our values."

Highlights of the new standard features on the 2006 Prevost H-series buses are featured at http://www.prevostcar.com/cgi-bin/pages.cgi?page=media&newsid=1137679261 .

About Prevost

Prevost is a leading North American manufacturer of premium touring coaches and bus shells for high-end motorhomes and specialty conversions. For 80 years, the company's mission has been to reach new heights in customer satisfaction through ongoing innovation, quality products, unmatched after- sales service and an unrelenting focus on customer needs.

In 1998, Prevost expanded its product line with the acquisition of Nova Bus, a leading public transit vehicle manufacturer. Its expertise and leading- edge manufacturing processes are behind the most innovative public transit solution on the road today -- the Nova LFS.

Owned by Volvo Bus Corporation, Prevost has access to the financial strength, product development capabilities and quality manufacturing technology of the world's second-largest motorcoach and transit bus manufacturing group.

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 original equipment manufacturer (OEM) and aftermarket opportunities. SmarTire has offices in North America and Europe.

A comprehensive investment profile regarding SmarTire Systems Inc. may be found at http://www.hawkassociates.com/smartire/profile.htm .