SmarTire Systems Inc. announced today that it has settled its patent infringement lawsuit against Siemens VDO Automotive Corp., now known as Continental Automotive Systems US, Inc., that was pending in the United States District Court for the Eastern District of Virginia. The terms of the February 20, 2008 Settlement and License Agreement between SmarTire and Siemens are confidential. In addition, Siemens has also acknowledged the validity and enforceability of SmartTire’s United States Patent No. 5,231,872 in a judgment that was entered by the district court on February 21, 2008. Dave Warkentin, President of SmarTire, said, “We are very pleased with this settlement as it validates and strengthens our extensive patent portfolio. “We expect to receive significant financial and non-financial benefits from the settlement, including substantial net proceeds after payment of withholding taxes and litigation-related expenses. “It will have a positive impact and allow us to focus on growing our business. We will continue to invest in R&D, seek innovations in tire pressure monitoring technologies and vigorously defend our intellectual property rights.” SmarTire’s remaining patent infringement claim against Schrader-Bridgeport International, Inc. and Schrader Electronics Ltd. in the same case will continue with a jury trial now set to begin on May 7, 2008, subject to the Court’s ruling on pre-trial motions. SmarTire develops and markets proprietary advanced wireless sensing and control systems worldwide under the SmartWave trademark. It developed numerous patent-protected wireless technologies and has advanced tire monitoring solutions since 1987. SmarTire offers large fleet, commercial, bus and recreational vehicles patent-protected, before- and aftermarket wireless technologies and advanced tire-monitoring solutions using its proprietary SmartWave platform.