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News Release -- January 12, 2001
Email: [email protected]
Contact: Charlene Krepiakevich
Tel. 1-604-276-9884 / 800-982-2001
SMARTIRE PREPARES TO ENTER COMMERCIAL VEHICLE MARKET
RICHMOND, BRITISH COLUMBIA, CANADA -- JANUARY 12, 2001 - SmarTire Systems Inc.
(NASDAQ:SMTR) announces that it has entered into an Assignment and Amendment
Agreement with its strategic partner, TRW Inc., that transfers to SmarTire the
exclusive license to manufacture and sell tire monitoring systems to the
original equipment manufacturers of most medium and heavy duty trucks. As
primary consideration for this transaction, TRW receives 450,000 shares of
SmarTire common stock to add to its existing portfolio.
The Agreement paves the way for SmarTire to enter the commercial vehicle market
in 2001 on both the original equipment and aftermarket levels.
Under the SmarTire / TRW alliance established in April 1998, SmarTire granted
TRW an exclusive license to use SmarTire technology in tire monitoring systems
for passenger cars and light, medium and heavy duty trucks sold to original
equipment manufacturers. In response to escalating demand for tire monitoring
systems by original equipment manufacturers resulting from recently approved
U.S. legislation (the TREAD Act) requiring new motor vehicles to be equipped
with a system that warns drivers of significantly under-inflated tires starting
in late 2003, TRW will be concentrating its efforts primarily on the passenger
car and light truck markets.
In addition to servicing the needs of the North American and European passenger
car and light truck aftermarkets, SmarTire is taking strategic steps to expand
its product development and marketing activities to include the commercial
vehicle market involving both original equipment manufacturers and aftermarket
customers.
"This licensing arrangement with TRW is of primary importance to SmarTire,"
reported Robert Rudman, SmarTire's President and C.E.O. "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."
Ronald Muckley, Vice President and General Manager, Safety & Security Systems,
TRW Automotive Electronics, added, "TRW's resulting increased equity position in
SmarTire reflects our confidence in our strategic alliance and in our advanced
tire monitoring technology and products. 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."
SmarTire develops and markets the world's most technically advanced tire
monitoring systems for all sectors of the automotive and transportation
industries. Through a strategic alliance, SmarTire 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
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TRW Automotive Electronics, based in Farmington Hills, Michigan, USA, is a
leading producer of safety and security systems, body control systems, chassis
and powertrain controls, and engineered fasteners for the global automotive
market. It is a unit of TRW Inc. (NYSE: TRW), which provides advanced technology
products and services for the global automotive, aerospace and information
systems markets. TRW, headquartered in Cleveland, Ohio, USA, is one of the
largest independent automotive suppliers in the world. For more information on
TRW, visit the company's web site at www.trw.com.
"KEVIN A. CARLSON"
Kevin A. Carlson, C.A.
Chief Financial Officer and Managing Director
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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