SmarTire Announces Battery-less Tire Pressure Monitoring Technology

Company's Next Generation Technology Designed To Set New Industry Standard

RICHMOND, BC, July 28 -- SmarTire Systems Inc. (OTCBB: SMTR) announced today that it has successfully completed the initial test phase of a new battery-less tire pressure and temperature monitoring system. With the automotive industry in search of a tire monitoring technology that does not rely on batteries, the management of SmarTire believes that its next generation of tire monitoring systems could set a new standard.

Current tire monitoring systems use battery power to transmit pressure and temperature information from sensors inside the tires to a receiver located within the vehicle. The new SmarTire technology involves a passive sensor inside each tire that is energized by an antenna located within each wheel arch.

SmarTire's battery-less system offers significant improvements over current battery powered tire monitoring technologies. Elimination of the battery in the sensor greatly reduces its weight, size and cost. Sensor life and reliability are increased and battery disposal issues are eliminated, creating an environmentally "green" solution. This new approach to tire monitoring allows tires to be rotated or changed without re-programming the system. It also tracks tire revolutions, a critical variable in predicting tire life.

SmarTire's President and CEO, Robert Rudman said, "This is cutting edge technology that we believe has the ability to advance the tire monitoring industry to the next level. While aspects of this technology do exist in other forms, our engineers have successfully applied and extended its functionality to satisfy the particular demands of tire monitoring. For some time now, the industry has been demanding a paradigm shift to a battery-less technology. Although it will take at least a year to commercialize this new technology, we believe that this technical milestone reinforces SmarTire as the technology leader in tire pressure monitoring systems."

Erwin Bartz, Vice-President of Business Development, said, "Achieving this milestone is a direct result of a lengthy research program that leveraged SmarTire's 16 years of engineering expertise specifically focused on tire pressure monitoring. This new battery-less solution conceptually meets the stated goals of many of the automotive manufacturers for the next generation of tire pressure monitoring products."

About SmarTire Systems

SmarTire develops and markets proprietary advanced tire pressure monitoring and technology systems for the global automotive and transportation industries. The U.S. Government, through the TREAD Act, has legislated that all new passenger vehicles must be equipped with tire monitoring systems beginning with a phased implementation in 2004. SmarTire is capitalizing on the rapidly emerging OEM and aftermarket opportunities. The company's vision is to become the preeminent provider of wireless sensing and control systems for vehicles worldwide. Incorporated in 1987, SmarTire has offices in North America and Europe.

An investment profile about SmarTire Systems may be found online at www.hawkassociates.com/smartire/profile.htm

Additional information about SmarTire Systems can be found on the website www.smartire.com. An online investor kit containing SmarTire press releases, SEC filings, current price Level II quotes, interactive Java, stock charts and other useful information for investors can be found at www.hawkassociates.com and www.hawkmicrocaps.com. Investors may contact Randy Halischuk, or Judy Leclercq, SmarTire at (800) 982-2001 email: investor_relations@smartire.com or Frank Hawkins or Julie Marshall, Hawk Associates at (305) 852-2383, email: info@hawkassociates.com.