SmarTire Pursues Dual Product Development Strategy
1 October 1998
SmarTire Pursues Dual Product Development Strategy
RICHMOND, British Columbia--Oct. 1, 1998--SmarTire Systems Inc. (VSE:SES.) (OTC BB:SMTR) announced today that two new tire monitoring systems are currently being developed in response to market demand.
One product represents an external wheel approach by attaching a miniature sensor/transmitter module to the end of the valve stem and the second system involves installation of the sensor/transmitter module inside the tire on the wheel.
The external system, to be marketed as "SmarTire Pressure Alert(tm)", is a low pressure warning device (LPWD). The sensor/transmitter modules send signals to an onboard display/receiver alerting the driver to a loss of air pressure below pre-set levels. This LPWD has been designed specifically for use with the new "runflat" tires which operate up to fifty miles without pressure. Passenger cars equipped with these tires require a LPWD to alert the driver of pressure loss. The Pressure Alert(tm) system will also operate with conventional radial tires and later versions of this product will be designed for use with trucks and recreational vehicles.
With its lower cost and ease of installation, the Pressure Alert(tm) System is expected to greatly facilitate the expansion of the runflat tire marketing programs involving all three major tire manufacturers. As originally announced on May 5, 1998, this LPWD is being developed for SmarTire Systems by Advantage Enterprises Inc. of Harrisonville, Missouri. Once all required product testing including the certification process has been satisfactorily completed, the LPWD will be released into production. Originally scheduled for the third quarter of 1998, the product release is now expected to occur during the first quarter of 1999.
The second system is being co-developed through SmarTire's strategic alliance with TRW Inc. of Cleveland, Ohio. This improved product will represent the culmination of years of research and development on the part of SmarTire engineers and will integrate TRW's advanced radio frequency technology used in TRW's market leading remote keyless entry systems. This new internal system will use smaller and easier to install sensor/transmitter modules and will offer mounting options for easy installation. Designed for universal application, this product is expected to have wide acceptance in both the automotive OEM markets and the aftermarkets of North America and Europe. The testing and certification program for this tire monitoring system is scheduled to commence during the first quarter of 1999.
Commenting on the news, President and CEO, Robert V. Rudman stated, "These second generation products represent significant technological improvements and respond to market demand for low cost, easy to install user friendly systems. These new products will provide complete market coverage, ensuring SmarTire's leadership in this industry."
SmarTire Systems Inc. is the developer and marketer of proprietary tire monitoring systems for the North American and European automotive market. The Company is pursuing the passenger car market segment in response to the introduction of the new runflat tires. Goodyear, Michelin and Bridgestone/Firestone have all approved the current SmarTire(tm) system for use with their run-flat tires. Through a strategic alliance, SmarTire and TRW Inc. are committed to providing superior tire monitoring systems for both aftermarket and original equipment applications.
On behalf of the Board of Directors, Robert V. Rudman, C.A., President and CEO
Except for the historical information contained herein, this news release contains forward looking statements that involve risks and uncertainties, including the impact of competitive products and pricing and general economic conditions as they affect the Company's customers. Actual results and developments may therefore differ materially from those described in this release.
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