Replies to post #1509 on TTC Technology Corp.(fka TCLIF)

[Autom8]

December 10, 2007

On september 12, 2007, we filed a complaint against Siemens VDO Automotive Corp. and Schrader-Bridgeport International, Inc. in the United States District Court for the Eastern District of Virginia alleging infringement of our United States Patent No. 5,231,872, entitled "Tire Monitoring Apparatus and Method."



The Court has set a pretrial schedule directing the parties in the lawsuit to complete discovery by the end of February 2008 and setting the final pre-trial conference for February 21, 2008. The trial of the case is expected to start four to eight weeks after the final pre-trial conference.

[Autom8]

* What patent infringement lawsuit did SmarTire recently file?
On Sept. 13, 2007, SmarTire Systems filed a legal complaint against Siemens VDO Automotive Corp. and Schrader-Bridgeport International, Inc.
* What did the lawsuit allege?
The suit alleged infringement of SmarTire’s patent, United States Patent No. 5,231,872, entitled "Tire Monitoring Apparatus and Method."
* In which court was the lawsuit filed?
The lawsuit was filed in the United States District Court for the Eastern District of Virginia.
* Why was the lawsuit filed?
Because of the resources and energy invested into producing a unique product, SmarTire Systems takes any patent infringement very seriously. As SmarTire Systems is a public company, its shareholders demand such accountability and would expect no less.
* What is the case number?
The case is SmarTire Systems, Inc. v. Siemens VDO Automotive Corp. and Schrader-Bridgeport International, Inc., Civil Action No. 1:07cv932 (E.D. Virginia).
* When will the case be tried?
We cannot say for certain, but we certainly anticipate a fair and speedy resolution.
* Will SmarTire be releasing additional information about the lawsuit?
If or when we do release information, all information regarding the lawsuit will be announced via news release to all shareholders and the public simultaneously. Of course, one can always access company updates in the news releases posted regularly at www.smartire.com.

[Autom8]

SmarTire Systems Inc.
Suite 150, 13151 Vanier Place
Richmond, British Columbia
Canada, V6V 2J1
T: [phone]
F: [phone]
www.smartire.com
OTCBB: SMTR
NEWS RELEASE – December 21, 2007
SmarTire Reports Q1 Financial Results
Richmond, British Columbia, Canada, December 21, 2007 -- SmarTire Systems Inc.
(OTC Bulletin Board: SMTR), a provider of active tire pressure and temperature
monitoring systems for the global commercial or truck, bus, recreational vehicle, and off
highway vehicle markets, announced today that revenue for the first quarter of FY 2008
increased by 8% to $923,026 as compared to $851,779 in the first quarter of FY 2007.
SmarTire’s net loss for Q1 2008 was $5.4 million or ($0.01) per share compared to a net
loss of $5.4 million or ($0.02) per share in Q1 2007. In Q1 2008, SmarTire’s net loss
from operations decreased by 50% to $1.2 million from $2.4 million in Q1 2007.
SmarTire’s net other expenses increased by $1.2 million in Q1 2008 to $4.2 million,
primarily due to:
• An increase in interest and financing charges to $5.0 million in Q1 2008 from
$1.9M in Q1 2007
• A foreign exchange gain of $846K in Q1 2008 compared to a foreign exchange
loss of $7K in Q1 2007
• An unrealized gain on derivative instruments of nil in Q1 2008 from $1.0 million
in Q1 2007
Cash used to fund operating and investing activities in Q1 2008 decreased by $1.5
million to $0.6 million from $2.1 million in Q1 2007. The decrease in cash used was
primarily due to a decrease in operating expenses in Q1 2008 due to a reduction in the
number of SmarTire employees and a reduction in SmarTire’s investing activities as
SmarTire substantially completed product development of the company’s current product
offering in fiscal 2007.
“Our continued objective is to make our company profitable. We have taken the
necessary steps to reduce costs and keep them under control. However we recognize that
to meet our profitability objective we need to remain tightly focused on increasing
revenue”, said David Warkentin, President and Chief Executive Officer in announcing
results. “We are disappointed that revenues have not grown more quickly, but delayed
production implementation schedules with a number of OEM customers which are
expected to begin in the New Year have impacted revenue growth.