SmarTire to Launch New Strategic Marketing Initiative

20 January 1999

SmarTire to Launch New Strategic Marketing Initiative

    RICHMOND, British Columbia--Jan. 19, 1999-- SmarTire Systems Inc. (VSE:SES.), through its SmarTire USA subsidiary, is developing an exciting new marketing program to coincide with the North American spring/summer tire buying season.
    "This new marketing campaign, called SmarTire-Direct, will be in full swing by April and is aimed directly at consumers in those niche markets our research has shown to be most receptive to tire pressure monitoring," said Gary Schlachter, executive vice president Sales and Marketing, SmarTire USA.
    "Last year we focused our efforts on developing wholesale business with major tire retailers throughout North America primarily to support the launch of run-flat tires," explained Schlachter. "With distribution now firmly established in nearly 2,000 quality outlets across North America, we can focus our 1999 efforts on direct sales to consumers in specialty niche markets. We will continue developing wholesale business for both standard radial and run-flat tires."
    SmarTire's media plan targets car enthusiasts and recreational vehicle (RV) owners with full-page ads in such publications as Auto Week, Road and Track and selected RV publications. In addition, SmarTire will exploit the growth of on-line buying with the launch of its own e-commerce site to coincide with the media campaign. Both print ads and an extensive Internet banner advertising campaign are designed to drive traffic to the site.
    Smartire.com will feature product information, a listing of approved and certified installers, and an interactive demonstration of the SmarTire Pressure Monitoring System, along with the on-line purchase capabilities.
    "E-commerce will be a very powerful selling tool and a most important component of our future marketing efforts," added Joseph Merback, president and CEO, SmarTire USA.
    SmarTire Systems Inc. develops and markets proprietary tire monitoring systems for the North American and European automotive aftermarkets. Through a strategic alliance, SmarTire and TRW Inc. are committed to providing superior tire monitoring systems for both aftermarket and original equipment applications. Additional information is available at www.smartire.com.

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.

The Vancouver Stock Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of the contents of this release.