Amerityre to Jointly Develop Composite Hoop Belt Technology for Polyurethane Tires

BOULDER CITY, Nev., Sept. 24, 2008 Amerityre Corporation , a leading developer of polyurethane tire technologies, today announced that it has entered into a Phase I development program with a multi-billion dollar defense industry contractor that is a leader in aerospace composite technology. The objective of the Phase I development program is to establish the base line performance characteristics of Amerityre's polyurethane passenger car tire incorporating a "composite hoop" belt, as opposed to traditional tire belting material. The objective of the composite hoop belt is to improve tire performance while simplifying the tire manufacturing process. The composite hoop belt has been investigated in rubber tire applications by Mr. Edward Markow of Edward Markow Consulting. Under the program, Amerityre will provide the polyurethane tire design and material, the defense contractor partner will fabricate the composite hoop belts and Mr. Markow will consult on the program.

According to Dr. Gary Benninger, Amerityre's President and CEO, "Mr. Markow has been involved in vehicle testing of the composite hoop belts in prototype rubber tires that has resulted in performance improvements in stopping, handling, and rolling resistance. In addition, run flat capability and improved tread integrity (resistance to puncture) were demonstrated. The Phase I development program is to determine if similar or superior performance improvements can be attained using polyurethane instead of rubber tire materials.

Independent laboratory testing has demonstrated that Amerityre's Arcus(R) polyurethane run-flat tire had an average of 45% less rolling resistance than a comparable rubber run-flat car tire. The test also indicated that the lower rolling resistance would result in more than a 5% to 10% improvement in fuel economy for a car equipped with Arcus(R) tires.

A program to further improve the performance of the composite hoop belt by incorporating Amerityre's advanced polyurethane technology into the fabrication of the belt is also under evaluation.

"The composite hoop belt development program is significant to Amerityre because it advances an element of the tire manufacturing process that is intended to achieve a production rate of one tire per minute. We are pleased to be working on this important development program with a partner that is well respected in aerospace composite technologies. We expect the hoop belt technology coupled with our advanced polyurethane tire technology to have a tremendous impact on future transportation in both civilian and military applications," commented Dr. Benninger.