Difficult Year For SmarTire

The Company reported a net loss of $6.8 million ($0.41 per share) 2002 compared with a net loss of $5.

5 million ($0.39 per share) in 2001. Gross revenue for 2002 totalled $1.

0 million, up from $0.8 million for 2001.”SmarTire’s financial performance during this past fiscal year was definitely impacted by the extended delay of the National Highway Traffic Safety Administration (NHTSA) rulemaking that requires the installation of tyre pressure monitoring systems in all passenger vehicles and light trucks beginning on November 1, 2003,” reported Robert Rudman, President and Chief Executive Officer of SmarTire.

“In addition, the general downturn in the economy, the severe erosion in the stock market and the events of September 11, 2001 made last year one of the most challenging in SmarTire’s fifteen year history. Our Company has aggressively addressed these challenges by launching new products, by expanding international distribution channels, and by developing relationships with some of the largest players in the automotive industry.”All Change For SmarTireIn a restructure to move emphasis from aftermarket to OE supply SmarTire has undergone a management restructureing.

 Jeff Finkelstein has been promoted to the position of Chief Financial Officer. The SmarTire (Europe) office has been restructured to capitalise on emerging market opportunities with original equipment manufacturers. Emphasis is now being placed on business development and growth of new product lines as opposed to aftermarket channel development.

These strategic changes have resulted in the resignation of Ian Bateman as Director of SmarTire’s U.K. subsidiary.