1
                                   EXHIBIT 11

                              SMARTIRE SYSTEMS INC.
                          COMPUTATION OF LOSS PER SHARE




                                         Three Months Ended              Six Months Ended
                                    January 31,     January 31,     January 31,     January 31,
                                       2000            1999            2000            1999
- -----------------------------------------------------------------------------------------------

($000's except per share data)
                                                                        

Net loss                                 2,821           2,657           4,816           4,467
- ----------------------------------------------------------------------------------------------

Weighted average number
Of common shares                    12,553,280       9,532,424      11,591,614       9,458,174
- ----------------------------------------------------------------------------------------------

Basic loss per share                       .22             .28             .42             .47
- ----------------------------------------------------------------------------------------------



The stock options and warrants outstanding are anti-dilutive. Accordingly,
diluted loss per share does not differ from basic loss per share for the years
presented herein.