SmarTire Systems Inc. (NASDAQ) is strategically positioned to maximize the opportunity being made available as a result of the recent joint venture announced between Michelin and Goodyear, according to Robert Rudman, the Company's President and CEO.

In this significant announcement, the two major tire companies have agreed to cooperate in the development of advanced run-flat tire technology. Tire monitoring systems play an integral and essential role in run-flat or extended mobility tires. As the industry leader in tire monitoring technology, SmarTire has been supplying tire monitoring products to Michelin and Goodyear since the launch of their run-flat tires in 1997.

Recognizing Michelin's PAX tire/wheel system has the greatest potential for setting the standard in future run-flat tires, SmarTire secured a license for Surface Acoustic Wave (SAW) technology in 1999, which it believes represents the best tire monitoring solution for PAX tires. Rudman further added, "the use of SAW technology in SmarTire's future products will complement the environmental features of the PAX tire/wheel combination by offering a tire monitoring system that requires no batteries, adds minimal weight but offers extreme accuracy for optimal performance."

According to their news releases, Michelin and Goodyear will 'dramatically accelerate the availability of advanced run-flat systems for auto manufacturers and consumers'. The two tire companies will also coordinate a global awareness campaign to promote the benefits of run-flat tire systems and combine their efforts into a PAX tire solution incorporating the best tire monitoring technology.

"As the exclusive supplier of tire monitoring systems to the Goodyear EMT program in Europe and working in conjunction with Michelin on tire monitoring solutions, SmarTire is delighted with this announcement," said Ian Bateman, Managing Director of SmarTire Europe Ltd. "The combined resources of these tire industry giants will greatly increase awareness of tire monitoring, add momentum to consumer demand and create the opportunity for SmarTire to showcase its future tire monitoring solutions," he added.

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:-