American Tire Corporation (OTCBB: ATYR), today announced that it has completed its research and development, beta testing, field trials and begun manufacturing its proprietary and revolutionary "No-Flat" tire.

As part of the Company's ramp-up to full production, it has successfully completed the expansion and relocation of its manufacturing facility to Boulder City, Nev., enabling a First Phase production capacity of 2 million tires.

The No-Flat tire, marketed under the Amerityre brand, offers the same ride as traditional pneumatic (air) tires at comparable prices without the problems resulting from a flat tire. Apart from basic cleaning, the Company's tires are maintenance free and eliminate tedious puncture repair or the need for a bicycle pump. Additionally, the products last two times longer than air tires, are more durable, safe and environmentally friendly.

Currently, the No-Flat tire is offered with an all-terrain, mountain or racing tread and is available in all tire sizes. The Company also bundles a proprietary wheel with the tire to wholesalers. For the consumer, the Company offers its own line of mountain bikes complete with a safety-yellow Amerityre No-Flat tire. The Company's products are now being marketed internationally to OEM's, national discount stores, bicycle specialty store chains and direct to consumers through its Web site, www.amerityre.com. Similar tire products for the motorcycle, motorscooter and baby walker markets are in development.

Commenting on its new revolutionary product, Richard Steinke, president and chief executive officer of the Company, offered, "Our research into the low-duty tire market over the past two years has generated very intriguing data and uncovered numerous business opportunities for American Tire. We have found that many owners of bicycles, motorcycles, motorscooters and baby walkers have postponed the use of these vehicles due to flat tires. Our answer to that problem was to develop a tire that simply does not go flat. And while the solution may appear simple, it has actually taken two years and substantial investment to explore the physics and develop the chemistry necessary to manufacture this product."

"Now having completed the move to our new manufacturing facility and producing several successful product runs, we are preparing to rollout the product line nationally. As we develop product awareness globally and the demand for product grows, we are more than capable of keeping up with that demand. While our current facility is presently geared for producing 2 million tires annually, we can easily scale up to 16 million tires of any size, style or composite. To sum it up, we're quite enthusiastic about consumer acceptance for the immediate and long-term and prepared to service that market worldwide," Steinke added.

About American Tire Corporation

American Tire Corporation designs, manufactures and markets proprietary "No-Flat" tires under the Amerityre brand for the $5 billion per year bicycle tire marketplace worldwide. The Company's patented "flat-free" technology and manufacturing process allows it to produce a tire that offers the same ride as traditional pneumatic (air) tires, at comparable prices, without the problems resulting from a flat tire. Apart from basic cleaning, the Company's tires are maintenance free and eliminate tedious puncture repair or the need for a bicycle pump. Additionally, the products last two times longer than air tires, are more durable, safe and environmentally friendly. Similar No-Flat tire products for the motorcycle, motorscooter and baby walker markets are in development. Further information can be found at the company's Web site: www.amerityre.com.

This news release includes forward-looking statements that are made pursuant to the "safe harbor" provisions of the Private Securities Litigation Reform Acts of 1995. While these statements are made to convey to the public the Company's progress, business opportunities and growth prospects, readers are cautioned that such forward-looking statements represent management's opinion. Whereas management believes such representations to be true and accurate based on information and data available to the Company at this time, actual results may differ materially from those described. The Company's operations and business prospects are always subject to risk and uncertainties. Important factors that may cause actual results to differ are set forth in the Company's periodic filings with the U.S. Securities and Exchange Commission.