Because recent legislation has increased demand for tire monitoring systems, TRW is concentrating its efforts on the passenger car and light truck markets and is licensing British Columbia-based SmarTire to handle its commercial tire monitoring systems.

In 1998, SmarTire granted TRW Automotive Electronics, Farmington Hills, Mich., 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.
The new TREAD Act, passed in response to the Firestone tire/Ford Explorer recall, requires new motor vehicles to be equipped with a system that warns drivers of significantly under-inflated tires starting in late 2003. Because of this, TRW wants to concentrate on the passenger vehicle market. Last week, SmarTire and TRW announced an agreement that transfers to SmarTire the exclusive license to manufacture and sell tire monitoring systems to the OEMs of most medium and heavy duty trucks. As primary consideration for this transaction, TRW receives 450,000 shares of SmarTire common stock to add to its existing portfolio.
The agreement paves the way for SmarTire to enter the commercial vehicle market in 2001 on both the original equipment and aftermarket levels.
For more information, visit www.smartire.com