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SmarTire Strengthens Management Team to Pursue Aggressive Business Strategy

11 June 1999

SmarTire Strengthens Management Team to Pursue Aggressive Business Strategy

    RICHMOND, British Columbia--June 11, 1999-- SmarTire Systems Inc. is re-allocating management responsibilities and supplementing technical and financial resources to achieve its aggressive product development and marketing goals.
    To strengthen the senior management team, the Board of Directors has appointed Robert Rudman as Chairman and Chief Executive Officer and Mark Desmarais as President and Chief Operating Officer of the Company.
    Mr. Rudman will continue to direct the overall business strategy of the Company. He has a proven track record for successfully managing the external operations of the Company, including the planning and establishment of strategic alliances.
    In his new role, Mr. Desmarais, who joined SmarTire in March of this year as President and CEO of SmarTire USA, will apply his considerable engineering and project management experience to leading SmarTire's product development program and managing the organizational and operational planning process. He will direct, co-ordinate and administer all internal operations for both the Company and SmarTire USA.
    Mr. Rudman comments, "During this past year, our efforts have focused primarily on marketing our passenger car tire monitoring system (TMS) in support of the introduction of run-flat tires, which require tire monitoring. Recently, we have expanded the marketing program to include a direct approach to consumers which introduces TMS for use with conventional tires.
    "The demand for tire monitoring by original equipment manufacturers is escalating. The major tire manufacturers have invested heavily in international campaigns to introduce run-flat tires. While it is increasing, consumer awareness is growing at a pace that is slower than the industry anticipated."
    The SmarTire response is to intensify and escalate its product development program while continuing to build consumer awareness and acceptance of tire monitoring within strategic target markets. The Company's product development program consists not only of the next generation of passenger car TMS, which will offer improved price and installation, but also a family of commercial vehicle systems.
    Explains Mr. Desmarais, "We have long recognized that the commercial vehicle, or trucking, market will be extremely lucrative for tire monitoring. We are moving ahead quickly to develop the products that will allow SmarTire to lead that market in tire monitoring and satisfy the technical demands of the industry."
    As part of its product development program, the Company will be assessing and acquiring technologies that complement and enhance the TMS technologies currently patented by SmarTire.
    "There are a multitude of opportunities for tire monitoring throughout the transportation industry," says Mr. Desmarais. "The key to SmarTire's ongoing success will be not just identifying the markets, but acquiring the technologies and developing the products that will meet those markets' needs. We will be investigating different technologies, reinforcing our engineering team, and fully utilizing present and future strategic alliances to develop industry-leading products."
    To ensure that adequate financial resources are available to fund the aggressive product development and marketing programs, SmarTire is assessing several financing opportunities.
    SmarTire Systems Inc. develops and markets proprietary tire monitoring systems for the North American and European automotive aftermarkets. Through their strategic alliance, SmarTire Systems 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.

    Kevin A. Carlson, CA, Chief Financial Officer

    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.