SmarTire Provides New Product Update

24 August 2000

SmarTire Provides New Product Update

    RICHMOND, B.C.--Aug. 24, 2000--SmarTire Systems Inc. reports its second generation tire monitoring products for passenger cars, sport utility vehicles and light trucks have entered the final phase of design and validation testing and product samples have been shipped to potential customers in Europe.
    The new products will be available for release into production upon completion of the testing process.
    "Today, tire safety and monitoring is foremost on the minds of consumers and industry suppliers," stated SmarTire's Robert Rudman, President and Chief Executive Officer. "SmarTire has developed wireless technology that provides consumers and the transportation industry with peace of mind and represents the next breakthrough in vehicle safety," Rudman added.
    SmarTire's new products provide an extra measure of safety, performance and reliability with advanced technology, modular design and improved features. With a completely new transmitter in a choice of two mounting configurations, as well as display options that offer an early warning signal or real-time digital tire pressure and temperature information, SmarTire's products provide substantial improvements over the current tire monitoring products.
    "SmarTire plans to increase the awareness for tire safety, tire monitoring and SmarTire products through various investor and public relations programs and marketing initiatives," added Rudman. In early September, SmarTire will participate in Europe's largest automotive parts, accessory and technology exhibition, Automechanika, in Frankfurt, Germany. Later in October, the Company will showcase its products in Las Vegas at North America's largest automotive trade show, SEMA. SmarTire will also continue to enhance its investor and public relations programs with assistance from professional firms in North America and Europe.
    Since launching the development of its next generation of tire monitoring systems, SmarTire's focused engineering team has made steady progress in the development of these new products. "To assure product quality and field performance, the components and systems were subjected to extensive automotive tests by an independent lab," Rudman said. "A wide range of mechanical, environmental, electrical and durability tests are now nearing completion. The products will soon be available for release into production."
    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, C.A. Chief Financial Officer and General Manager

    Except for this 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.