In this paper a novel strain gauge system on stainless steel and 96% alumina substrates is described incorporating a Wheatstone bridge network, thick-film piezoresistive strain gauges, instrumentation, and a novel thermal and resistor mismatch tolerance correction software. The resistors in the Wheatstone bridge are fabricated with a novel mixture of ruthenium, bismuth and indium oxides and three different thick-film layouts are used. Mechanical measurements are performed using the cantilever beam set-up. The linearity, hysteresis, repeatability, reproducibility, creep, stability and temperature effects are measured for the novel thick-film pastes. The linearity and temperature effect on the output of the different bridge layouts are also examined. The printing of resistors using thick-film technology can result in resistor tolerances of +/-20%. Also, thick-film piezoresistors are intrinsically cross sensitive to temperature. These two properties cause an offset voltage to appear at the output of the bridge under no-load/load conditions and a subsequent error in the calculated applied strain. In order to compensate for the offset error voltage, novel correction software has been developed and implemented using a microcontroller. The error in the predicted strain was measured before and after application of the correction software under different bridge layouts and temperature conditions. The error was reduced from a maximum of 45% to approximately 1%. The effectiveness of the correction software in reducing the error suggests that this technique can be used without the need for trimming or bridge balancing.