April 26, 2004

Development of polyurethane tires passes first hurdle

Boulder City, Nevada – Richard Steinke, President and Chief Executive Officer of Amerityre, annnounced that the company’s prototype polyurethane tires have complied with preliminary U.S. safety standards.

In January 2004, Amerityre began testing prototype polyurethane car tires at an independent lab to determine if the tires comply with U.S. Federal Motor Vehicle Safety Standard No. 109, applicable to new pneumatic tires. FMVSS No. 109 specifies tire dimensions and laboratory test requirements for bead unseating resistance, strength, endurance, and high speed performance; defines tire load ratings; and specifies labeling requirements for passenger car tires.

“Passing the test requirements is the first credibility threshold Amerityre must cross before it can further advance its polyurethane tire technology,” said Mr. Steinke. “If our tires don’t conform to the standard they can’t be introduced or otherwise sold in the United States.”

Further commenting on the test results, Mr. Steinke said, “Besides meeting the testing requirements, there are at least two other significant conclusions that we can draw from the test results. First, the polyurethane compound we used in the tires had running temperatures measurably lower than rubber. This is important because extreme over-heating is always a concern when looking at a tire’s performance. Second, our manufacturing process really simplifies the way tires can be made. As a result the manufacturing process should prove to be cost-effective, which overcomes one of the barriers to getting the technology implemented commercially.”

Mr. Steinke further stated that, “Although FMVSS 109 is the current standard applicable to new pneumatic car tires, Amerityre is well aware that additional testing will be required to demonstrate that the technology complies with the new standards under FMVSS 139 when they take effect in 2007. However, passing the current standards shows our technology works and we are confident the new standards will be met as well.”

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