SmarTire Reports 2007 Year End Financial Results

Cash used in operations and investing activities decreases by $3.0 Million

RICHMOND, British Columbia, Nov. 9 -- SmarTire Systems Inc. (BULLETIN BOARD: SMTR) , a provider of active tire pressure and temperature monitoring systems for the global commercial or truck, bus, recreational vehicle, and off highway vehicle markets, announced today that revenue for its fiscal year ended July 31, 2007 increased to $3,661,821 from $3,455,649 during fiscal 2006.

Net loss for the year decreased to $19.6 million or ($0.07) per share from $28.8 million or ($0.10) per share in fiscal year 2006. The decrease in the loss was mainly due to a decrease in non-cash interest charges of $12.0 million in fiscal year 2007 from $23.2 million in fiscal 2006.

Cash used to fund operating and investing activities in fiscal 2007 decreased to $5.1 million from $8.1 million in fiscal 2006. The decrease in cash used was primarily due to the closure of our European office, the reduction in the number of our employees by approximately 45% and the issuance of shares to settle debt. We anticipate that cash required for operating and investing activities in fiscal 2008 will decrease by another 50-60% of the amount of the cash used to fund operating and investing activities in fiscal 2007.

Operating expenses for the year increased to $7.7 million from $7.1 million in fiscal year 2006. The increase was primarily due to non-cash stock- based compensation expense of $682,000 in fiscal 2007 compared to a stock- based compensation recovery of $3.1 million in fiscal year 2006.

"Our objective is to make this Company profitable and we took a step in the right direction by reducing our burn rate by $3 Million for the year," said David Warkentin, President and Chief Executive Officer in announcing results. "We continue to reduce our burn rate as evidenced by our cash used during our fourth quarter, when we used cash of $672,918, a decrease of $227,122 from $900,040 during our third quarter. While I am extremely pleased that we have been able to reduce costs, I am still disappointed that revenues have not grown faster. Unfortunately, although we have not lost any business to our competitors, our customers' production implementation schedules have been slower than anticipated and are not an issue we can control."

"However, I am pleased with the progress we have made, especially our continued focus on our strategy, filing of our lawsuit against Siemens and Schrader, cost reductions and the strengthening of our supply chain as evidenced by our long-term supply agreement with GE Sensing. During this year, we landed several key customers, including John Deere, International Truck and Setra, a division of Daimler Chrysler.

SmarTire's detailed operating results are available in its Form 10-KSB, filed with the SEC, available online at: http://www.sec.gov/. SmarTire's consolidated financial statements and all financial information contained in this release are stated in U.S. dollars and are prepared in accordance with U.S. Generally Accepted Accounting Principles (GAAP).

SmarTire's year end earnings call with shareholders will be held this Friday, November 9 at 11:00 a.m. EST. U.S. and Canadian shareholders can call 1-800-895-1085 and ask the operator to connect them to the SmarTire call. International callers may dial 785-424-1055.

Those who miss the call may listen to it through an mp3 file that will be posted at www.smartire.com.

For more information, visit http://www.smartire.com/ or contact Emily Philips, Walek & Associates at (212) 590-0527 or e-mail at ephillips@walek.com.

About SmarTire

SmarTire develops and markets proprietary advanced wireless sensing and control systems worldwide under the SmartWave(TM) trademark. The company has invested more than $100 million in R&D for its patented tire monitoring technology. It developed numerous patent-protected wireless technologies and has advanced tire monitoring solutions since 1987.

SmarTire offers large fleet, commercial, bus and recreational vehicles patent-protected, before- and after-market wireless technologies and advanced tire-monitoring solutions using its proprietary SmartWave platform. The platform provides a foundation for the addition of multiple wireless sensing and control applications. Initial product releases using the SmartWave platform include the SmartWave(TM) TPMS, which leverages on SmarTire's background and knowledge in tire monitoring solution. SmarTire Systems maintains operations in North America and Europe. For more information about SmarTire Systems Inc., visit http://www.smartire.com/.

Except for historical information, this news release contains forward- looking statements that involve substantial risks and uncertainties. When used in this news release, the words "expects," "may," "intends," "plans," "anticipates," "likely," "believes," and similar expressions can be used to identify forward-looking statements. Forward-looking statements are based on current facts and analysis and on forecasts of future results, estimates of amounts not yet determined and assumptions of management. Actual results, performance, or achievements could differ materially from those contemplated, expressed or implied by the forward-looking statements contained herein. Forward-looking statements in this press release include the statement that cash required for operating and investing activities in fiscal 2008 will decrease by another 50-60% of the amount of the cash used to fund operating and investing activities in fiscal in fiscal 2007. These forward-looking statements are based largely on the expectations of SmarTire and are subject to a number of risks and uncertainties that are beyond SmarTire's control. These include, but are not limited to, risks and uncertainties associated with, SmarTire's ability to obtain additional financing and to continue as a going concern, SmarTire's dependence on key personnel, the effects of competitive pricing, SmarTire's dependence on the ability of third-party manufacturers to produce components on a basis that is cost-effective to SmarTire, market acceptance of SmarTire's products, acceptance of SmarTire's products by prominent customers, SmarTire's ability to keep up with technological advances in the industry, the effect of competitive products and the effects of governmental regulations. SmarTire cautions that the foregoing factors are not exhaustive. For a detailed discussion of these and other risk factors, please refer to SmarTire's filings with the Securities and Exchange Commission, including its annual report on Form 10-KSB. SmarTire expressly disclaims any intent or obligation to update any forward-looking statements.