TIR Systems Announces a Strategic Alliance with Spectral to Develop Solid State Lighting Products Based on LEXEL Technology.

VANCOUVER, British Columbia -- TIR Systems Ltd. (TSX:TIR), a world leader in light enabling technologies for LED-based Solid State Lighting (SSL) and the developer of the first and only fully integrated solid state light source, announces the signing of a strategic development agreement with Spectral GmbH (Spectral). Based in Freiburg, Germany and privately held, Spectral is a trend-setting designer and manufacturer of architectural lighting products. The initial focus of this design collaboration will be on developing LEXEL(TM)-based products for lighting applications which demand the precise control of colour temperature and dimming, as well as the energy efficiency that the LEXEL(TM) provides.

P.H. Neuhorst, Founder and Managing Director of Spectral stated, "We are sure that LED-based lighting is the future, with its ability to produce a new quality of light. The potential to control colour temperature and the option to use coloured light have greatly increased the scope of lighting design. TIR's technological breakthroughs in these areas made a partnership essential. This strategic cooperation will result in new lighting fixture designs and new lighting applications."

Leonard Hordyk, President and CEO of TIR Systems, added, "The addition of a partner with the reputation of Spectral for introducing sleek and contemporary lighting fixtures, further confirms growing market acceptance of the LEXEL(TM), not only as a legitimate alternative to conventional light sources but also as a catalyst for innovative lighting design."

The collaboration will leverage the industry leading capabilities of each company in the design and development of lighting products that advance the LEXEL(TM) technology as a standard for the SSL market. Both companies are committing significant resources to this collaborative effort and SSL in general. It is expected that LEXEL(TM)-based products will be available in the market in 2006.

About Spectral GmbH

Spectral GmbH provides lighting solutions and manufactures high-quality standard luminaires for building interiors. The Company's activities are focused on consultancy and supporting client partners during the planning of complex lighting systems, with the objective of creating lighting worlds that are ideally suited to the architectural application, and the requirements of owners, planners and contractors.

With a total of 140 employees, Spectral carries out up to 5,000 projects annually, from planning to construction. A team of product and interior designers exclusively manages new product development, successfully bringing fresh ideas and vision to the market and often setting new lighting trends. This has resulted in Spectral receiving a total of 56 design awards over the last 19 years.

This innovative luminaire program combines design, material selection and functionality. From high-tech to historical, from chandeliers up to the functional office and school lighting, Spectral's captivating designs highlight surfaces, structures and details.

To find out more about Spectral GmbH please visit http://www.spectral-online.de.

About TIR Systems Ltd.

TIR Systems Ltd., a world leader in delivering specialty lighting systems, is building the foundations for tomorrow's lighting. Through sound innovation and proven technical capability, TIR is developing, designing and marketing the core technologies that will allow Solid State Lighting (SSL) to move to the forefront of mainstream lighting.

To find out more about TIR Systems Ltd. (TSX:TIR), visit www.tirsys.com.

About LEXEL(TM)

The LEXEL(TM) is a perfectly controllable new solid state light source incorporating light emitting diodes (LEDs) that uses up to 80% less energy to produce the same amount of light as a conventional light source and does not degrade its output or colour temperature over its 50,000 hour life. LEXEL(TM) combines breakthroughs in thermal design, optics, and feedback to provide precise colour temperature control and dimming in a cost effective design, resulting in a truly intelligent light source for illumination.

This News Release contains forward-looking statements concerning the development, design and marketing of SSL technology and its expected impact on the Company's business. Forward-looking statements are statements about the future and include, but are not limited to, our ability to develop, design and market and sell our products or technologies in response to the continuing change in technology, evolving industry standards and changing customer preferences and requirements. Such statements are inherently uncertain, and the actual events or results could be materially different than those anticipated in those forward-looking statements as a result of numerous factors, including without limitation, our ability to successfully address these developments on a timely basis or at all; as well the other risks and uncertainties affecting the Company and its business, as contained in the Company's most recent Annual Information Form and other subsequent news releases and filings with the Canadian Securities Regulatory Authorities, any of which could cause actual events or results to vary materially from the Company's expectations. Forward-looking statements are based on the beliefs, opinions and expectations of the Company's management at the time they are made, and the Company does not assume any obligation to update its forward-looking statements if those beliefs, opinions or expectations, or other circumstances should change.

The TSX has not reviewed and does not accept responsibility for th e adequacy or accuracy of the content of this News Release.

TIR Systems Ltd. (TSX:TIR)