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News Release - October 16, 2000
Nasdaq: SMTR
Email: [email protected]
Contact: Charlene Krepiakevich
Tel. 1-800-982-2001
SMARTIRE AND HONEYWELL ENTER AGREEMENT TO SUPPLY TIRE MONITORING SYSTEMS TO
AUTOMOTIVE AFTERMARKET
RICHMOND, British Columbia, Canada, October 16, 2000 - SmarTire Systems Inc.
(Nasdaq: SMTR) and Honeywell (NYSE: HON) announced today an Agreement in
Principle that sets the framework for the two companies to enter into a Joint
Development and Supply Agreement for the purchase, distribution and sale of tire
monitoring systems to the automotive aftermarket. For SmarTire, the Agreement in
Principle represents an unprecedented opportunity to market its tire monitoring
products on a global basis through Honeywell's extensive retail auto parts
distribution network. The Agreement also provides for the joint development of
new tire monitoring products for the passenger car and commercial vehicle
markets.
The SmarTire/Honeywell agreement represents a timely solution to the dramatic
increase in consumer and governmental demand for tire monitoring products in
North America. The companies intend to address the need for improved tire safety
by offering SmarTire's latest generation of tire monitoring products for
passenger cars, light trucks, sport utility vehicles and vans. The companies
will also explore opportunities for global distribution, new product development
for the automotive aftermarket and future tire monitoring systems for other
market sectors.
"The establishment of successful alliances with key strategic partners continues
to be our most important business objective," states Robert Rudman, SmarTire's
C.E.O. and President. "In the area of marketing, distribution and product
development, Honeywell is an ideal strategic partner. It has distribution in
place to market our products to most major automotive parts retailers in North
America and into Europe. SmarTire provides innovation and technological
expertise in tire monitoring technology while Honeywell delivers consumer
branded, high-growth automotive products to the global aftermarket."
"We are absolutely delighted in announcing our plans involving Honeywell," added
Rudman. "The timing is excellent. SmarTire has the right products and Honeywell
has the proven delivery system. The market for tire monitoring products is
maturing at a tremendous pace and the SmarTire/Honeywell alliance is ideally
positioned to capitalize on this massive opportunity."
Honeywell is a US$24-billion diversified technology and manufacturing leader,
serving customers worldwide with aerospace products and services; control
technologies for buildings, homes and industry; automotive products; power
generation systems; specialty chemicals; fibers; plastics; and electronic and
advanced materials. The company is a leading provider of software and solutions,
and Internet e-hubs including MyPlant.com, MyFacilities.com and MyAircraft.com
(joint venture with United Technologies and i2 Technologies). Honeywell employs
approximately 120,000 people in 95 countries and is traded on the New York Stock
Exchange under the symbol HON, as well as on the London, Chicago and Pacific
stock exchanges. It is one of the 30 stocks that make up the Dow Jones
Industrial Average and is also a component of the Standard & Poor's 500 Index.
Additional information on the company is available on the Internet at
www.honeywell.com
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"
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.
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