SmarTire and Alligator Announce Development Agreement
13 December 1999
SmarTire and Alligator Announce Development Agreement
RICHMOND, BRITISH COLUMBIA--(--Dec. 10, 1999-- SmarTire SystemsSmarTire Systems Inc. announced today that it has completed a development agreement with Alligator Ventilfabrik GmbH in Giengen, Germany.SmarTire Systems Inc. (SmarTire) and Alligator Ventilfabrik GmbH (Alligator) have agreed to develop valve stem designs and tire monitoring electronic packaging for new market applications and new tire monitoring technologies.
Alligator is the world's leading producer of valve stems that allow the attachment of tire monitoring sensors inside the tire. These valve stems can be replaced during normal tire changes without the need to replace the tire monitoring sensors. Alligator's valve stems are fully developed, qualified and are in production for several of the largest German passenger car manufacturers.
SmarTire and Alligator have been working together over the past several months to assure that the valve stem mount sensor in SmarTire's new passenger car tire monitoring system, introduced at the SEMA show last month, can be attached to the valve stems produced by Alligator. "We designed the sensor packaging for our new tire monitoring system to attach to Alligator's industry accepted valve stem," stated Mark Desmarais, President and Chief Operating Officer of SmarTire. "The flexible connection mounting capability between the valve stem and sensor packaging combined with the modular design of our new receiver expands SmarTire's passenger car and light truck market opportunities."
The companies will also work together to develop valve stem designs and tire sensor packaging for commercial trucks and off road vehicles. The commercial truck and off road tire monitoring systems will benefit from much of the development effort expended on Alligator's passenger car valve stem and SmarTire's new passenger car tire monitoring system. "We can significantly reduce commercial and off road tire monitoring product development lead time and costs by building on what we learned from the new passenger car tire monitoring system," stated Mr. Desmarais. "The commercial and off road markets are the next strategic market opportunities for SmarTire. These markets can achieve significant benefits and operating cost reductions with the use of tire monitoring."
Finally, SmarTire and Alligator will develop valve stem mounting for a new "green technology" tire sensor that does not require battery power such as SAW technology recently licensed from Transense Technologies by SmarTire. This miniature sensor package can easily be packaged into the end of a valve stem. The unique technology does not require a battery to power the sensor for pressure sensing and transmission of pressure and temperature information.
SmarTire Systems Inc. is an emerging technology company that develops and markets proprietary tire monitoring systems for the North American and European automotive aftermarkets. Through their 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.
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.