SmarTire Systems: Sears to Sell SmarTire Products.

RICHMOND, British Columbia--(BUSINESS WIRE)--May 6, 1998-- SmarTire Systems Inc(VSE:SES.) (OTC Bulletin Board:SMTR) Sears Auto Centers (SAC) and NTB National Tire & Battery stores will soon be certified to sell the recently introduced Goodyear Aquasteel Run-Flat EMT (Extended Mobility Tire). The Goodyear Run-Flat will complement Michelin ZP (Zero Pressure) sales and position SAC and NTB as the first nationwide retailers to feature both of these companies' run-flat products.

"As the leading nationwide automotive and tire retailers, it's important that SAC and NTB are perceived as destination points for leading edge tire technology by the informed consumer," said David Arnovitz, Assistant Tire Buyer, Sears Tire Group.

Both the Goodyear Run-Flat EMT and the Michelin ZP perform so well without any air pressure that an approved tire pressure warning monitoring system is required with the purchase of each set. The SmarTire Wireless Pressure Monitor System is currently the only approved tire monitoring system (TMS) for use with both of the Goodyear EMT and Michelin ZP Run-Flat tires.

In order to support sales of these run-flat tires, the SmarTire TMS will soon be available at more than 200 certified SAC and NTB locations and another 200 thereafter. A list of these certified locations will be released later this month. By the end of the year, Sears intends to have over 700 of its locations stocking the Run-Flat tires and eventually will have more than 1,200 SAC and NTB outlets certified to sell and service run-flat products.

Further, Sears will evaluate SmarTire TMS to retail as a stand alone safety and tire maintenance product for conventional radial tire applications. "It's a terrific system to own whether you have conventional tires or run-flats on your car," Arnovitz said. "It allows drivers to be aware of their tires' inflation pressure constantly, which reduces fuel expenses, maximizes tire life and improves performance."

On behalf of the Board of Directors, Robert V. Rudman, C.A., President and CEO Except for the 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.

The Vancouver Stock Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of the contents of this release.

CONTACT: SmarTire Systems Inc.

Doug Martin, 604/276-9884 or 800/982-2001

604/276-2350 (FAX)

Email: [e-mail]

Website: http://www.smartire.com