SmarTire Secures Additional Financing

RICHMOND, British Columbia, May 1, 2007 -- SmarTire Systems Inc. announced today that it has entered into an agreement dated April 27, 2007, providing for the sale of up to $1.5 million in convertible debentures to a subsidiary of Cornell Capital Partners, LP. On April 27, 2007, SmarTire sold one convertible debenture under this agreement for gross proceeds of $1.15 million. The agreement provides that SmarTire may sell convertible debentures for the balance of up to $350,000 at any time until Oct. 1, 2007. Terms of the financing are disclosed in the company's 8-K filed today.

SmarTire intends to use the net proceeds of this financing offering for general corporate purposes, including working capital.

"We are pleased that Cornell has demonstrated its continued support of our strategy and vision as evidenced by its second financing with the company this calendar year," said SmarTire CFO Jeff Finkelstein.

About SmarTire Systems Inc.

SmarTire develops and markets proprietary advanced wireless sensing and control systems worldwide under the SmartWave(TM) trademark. SmarTire has developed numerous patent-protected wireless technologies and advanced tire monitoring solutions since it was founded in 1987. Its proprietary SmartWave platform provides a foundation for the addition of multiple wireless sensing and control applications. The initial product release on the SmartWave platform is SmartWave TPMS, which leverages on SmarTire's background and knowledge in tire monitoring solutions. SmarTire has offices in North America and Europe. For more information, visit http://www.smartire.com/.

This press release is available for investor commentary, questions, near real-time answers and monitored discussion in the SmarTire IR HUB at http://www.agoracom.com/IR/SmarTire. Alternatively, investors may speak with D.P. Martin and Associates at (561) 514-0194 or e-mail info@dpmartin.com.