SmarTire Enters Commercial Market

RICHMOND, B.C.--SmarTire Systems Inc. is entering the commercial vehicle market this year for both original equipment and aftermarket sales of its tire monitoring equipment.

Under the SmarTire/TRW alliance established in April 1998, SmarTire granted TRW an exclusive license to use SmarTire technology for passenger cars and light, medium and heavy duty trucks sold to OEMs. In response to escalating demand for tire monitoring systems from OEMs because of recently approved U.S. legislation (the TREAD Act) requiring that new vehicles be equipped with driver warnings for significantly under-inflated tires--starting in late 2003--TRW will be concentrating its efforts on passenger cars and light trucks.

SmarTire is taking steps to expand its product development and marketing activities to include the commercial vehicle market involving both OEMs and aftermarket customers.

“This licensing arrangement with TRW is of primary importance to SmarTire,” reported Robert Rudman, SmarTire’s president and chief executive officer. “It provides us with direct and vital access to the manufacturers of commercial vehicles. Our management has consistently stated that commercial vehicles will represent SmarTire’s primary market and now with technically advanced products, unprecedented demand for tire monitoring, plus expanded access to the trucking industry, our product development and marketing programs are shifting to this lucrative market opportunity.”

“TRW’s resulting increased equity position in SmarTire reflects our confidence in our strategic alliance and in our advanced tire monitoring technology and products,” said Ronald Muckley, vice president and general manager of safety and security systems for TRW Automotive Electronics. “The concern generated by recent reports highlighting the hazards of improper tire inflation and the demand created by the new U.S. legislation will result in significant market opportunities for both companies.”

For more information, contact www.smartire.com and www.trw.com.