SmarTire Deploys Balance of April 2007 Financing

RICHMOND, British Columbia, Aug. 24, 2007 -- SmarTire Systems Inc. (BULLETIN BOARD: SMTR) announced today that it has sold a convertible debenture in the amount of $350,000, which is the balance remaining under an agreement dated April 27, 2007 that provided for the sale of up to $1.5 million in convertible debentures to Xentenial Holdings Ltd. Terms of the financing are disclosed in the company's 8-K, which was filed today.

"We are pleased with the continued financial support that Xentenial Holdings, has provided us. The sale of this convertible debenture completes our use of Xentenial Holdings' second financing with us this calendar year. The two financings aggregated gross proceeds of $3.3 million," said SmarTire CFO Jeff Finkelstein.