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SmarTire Arranging Private Placement

29 September 1999

SmarTire Arranging Private Placement

    RICHMOND, British Columbia--Sept. 28, 1999-- SmarTire Systems Inc. is arranging a Private Placement for up to US$6 million through the issuance of up to 3 million common shares of the Company at a minimum price of US$2 per share. A commission would be payable on cash proceeds received by the Company. Net proceeds from the private placement will be used to fund the development and market launch of the Company's new passenger car and commercial tire monitoring systems and for working capital.

    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.

    Kevin A. Carlson, CA, Chief Financial Officer