SmarTire Secures Additional Financing

RICHMOND, British Columbia, Jan. 24, 2008 -- SmarTire Systems Inc. announced today that on January 18, 2008, it sold a second convertible debenture under the Securities Purchase Agreement entered into on November 30, 2007. In addition to the debenture, SmarTire issued 225 million share purchase warrants to the purchaser of the debenture. Each share purchase warrant may be exercised into shares of SmarTire's common stock at $0.0298 per share for a period of five years. Gross proceeds from the sale of the second debenture and the 225 million share purchase warrant were $392,000. Total gross proceeds received to date from the sale of debentures and share purchase warrants pursuant to the November 30, 2007 securities purchase agreement aggregate $814,000.

The agreement provides that SmarTire may sell convertible debentures for a balance of up to $336,000 at any time until May 30, 2008 and issue up to 195 million five year share purchase warrants exercisable into shares of its Common Stock at $0.0298 per share.

Terms of this 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.

About SmarTire Systems Inc.

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:

For more information, visit http://www.smartire.com/ or contact Emily Philips of Walek & Associates at 888-565-1240 or e-mail smartireinfo@walek.com.