ZAP is a leading distributor of fuel efficient alternative energy vehicles in the United States, and has already established a network of licensed automotive dealers throughout the United States and is preparing to expand internationally. In June 2007, ZAP announced a high performance electric vehicle called the Alias which is expected to be more affordable and available sooner than the ZAP-X but uses similar technology. We intend to grow our distribution base significantly over the next several years. ZAP launched the XEBRA in 2006. Our first automotive product comes in a four-passenger sedan version and a two-passenger utility pickup version. According to the Electric Auto Association, there are over 56,000 EVs on the road today. It is estimated that almost all EVs sold to date are LSVs. Because of its unique design, the Xebra is not restricted to 25 MPH under the LSV laws in the US. ZAP regulates the Xebra at a top speed of up to 40 MPH to fill the growing demand for electric vehicles in use for urban, in-town driving.
The Company believes the EV market niche will continue to grow rapidly, especially with the introduction of affordable vehicles such as the XEBRA that will retail for less than $11,700 and deliver features, such as speeds up to 40 mph, not currently available among existing EVs.