ZAP signs exclusive distribution contract with advanced battery manufacturer in China

SANTA ROSA, California (October 19, 2004) - Advanced automotive technology company ZAP (OTC BB:ZAPZ) announced today that it has signed an exclusive distribution contract with Zibo Enterprises Co. Ltd., a manufacturer of advanced battery technology in The People's Republic of China. ZAP has signed an exclusive distribution contract for ZAP Portable Energy™as well as other advanced energy devices in conjunction with Zibo Enterprises of China Earlier this month, ZAP announced that it has taken an equity position in Zibo Enterprises to invest in expanding research and development as well as manufacturing operations for advanced battery technologies. "The investments ZAP is making in Zibo Enterprises gives us access to new products, new technologies and market-entry in the quickly growing Chinese economy," said ZAP CEO Steve Schneider. "We look forward to working with Zibo in moving ahead with our business plan to create larger format batteries for ZAP electric cars as well as other advanced technology vehicles and energy devices." Schneider noted that ZAP's and Zibo's first new product ZAP Portable Energy™ is already generating new business within China, with over 5000 units sold. ZAP Portable Energy is a lithium-ion battery system designed to extend the running time for various low-powered electronic devices like cell phones, digital cameras and handheld computers, beyond traditional disposable and rechargeable batteries. With mobile electronics reaching record demand around the world, ZAP is establishing North American distribution for the new battery system to capitalize on the growing need to extend the life of portable electronic devices. ZAP and Zibo are currently in discussion on future products that would create larger format batteries for powering automobiles as well as other advanced technology vehicles and alternative energy devices. Schneider says these battery developments are the culmination of years of research and development and that mobile electronics are pushing the technology envelope for innovations in advanced batteries. This advanced battery technology in larger formats can power electric cars on a level comparable to today's internal combustion automobiles. ZAP Portable Energy (PE) is an instant backup for your battery-powered electronics, useful to extend the battery life or as an emergency power source for people on the go. The lithium-ion battery system can be recharged up to 1000 times and has up to four times the power as other batteries available. ZAP PE uses a smart microprocessor control system that can power a variety of mobile electronic devices, including handheld PCs, digital cameras, cellular phones, MP3, DVD, compact disk players or equivalent, low-voltage energy devices. It has the versatility to charge DC electronics from 7.0 to 11.0 volts through its DC port and 4.0 to 6.0 volt electronics through its USB port. ZAP Portable Energy is now available for immediate delivery.