RICHMOND, B.C. (Jan. 15, 2001) — SmarTire Systems, maker of electronic tire-inflation monitoring systems for cars and trucks, has reached an agreement to manufacturer and market TRW Inc.’s commercial tire monitoring systems.

In exchange, TRW will receive 450,000 shares of SmarTire common stock, worth about $1.65 million US.

TRW said it wants to concentrate its efforts on the U.S. passenger car and light truck market in light of the TREAD Act, passed by Congress in November 2000 in response to the Firestone tire/Ford Explorer recall. The law requires new vehicles to be equipped with a system that warns drivers of significantly under-inflated tires starting in late 2003.

In 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.

TRW’s automotive electronics unit, based in Farmington Hills, Mich., is a leading producer of safety and security systems for cars and trucks. SmarTire is based in Richmond, B.C.