SmarTire to Supply Pirelli With Tire-Monitoring Systems

SmarTire Systems and Pirelli have signed an agreement for tire-monitoring systems that
measure pressure and temperature of car and truck tires. Produced by SmarTire and tested
and certified by Pirelli, the products will be marketed and sold under the name X-Pressure.
The systems will go on sale by the end of 2002 through Pirelli’s tire-distribution channels
in Europe. No date has been set for the North American market. For Pirelli, this agreement
with SmarTire is a first step in its strategy to develop a tire able to actively interact
with other vehicle systems. The Pirelli TPMS — Tire Pressure Monitoring System — is the
first of a family of products destined to transform the tire from a passive component into
an intelligent system that contributes to the global control of the vehicle in terms of
safety, comfort and performance. A National Highway Traffic Safety Administration (NHTSA)
rulemaking requires the installation of tire-pressure monitoring systems in all passenger
vehicles and light trucks beginning November 1, 2003.

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