ZAP signs agreement with Costco

SANTA ROSA, California (November 24, 2004) - Advanced automotive technology Company ZAP (OTC BB:ZAPZ) announced today that it has signed an agreement with Costco Wholesale Corporation. The ZAPPY3 electric scooter is now available at Costco. ZAP has entered into a vendor-supplier relationship with Costco to supply the nationwide retailer with the newest in its line of energy-efficient and advanced technology vehicles. ZAP's new ZAPPY3 electric scooter is now available at Costco.com and ZAP CEO Steve Schneider says the two Companies are in discussion on a full-line of ZAP's products. "ZAP is excited to be involved with Costco on the introduction of the ZAPPY3, the first high performance three-wheeled scooter on the market," said ZAP CEO Steve Schneider. "We are honored that the ZAPPY3 meets the rigorous product-testing criteria that Costco demands for its members. This is an achievement for ZAP's designers and manufacturing partners to meet the Costco level of quality, among the highest in the world." ZAPPY3 takes scooters to a whole new level of fun, with a powerful new drive technology built directly into the front wheel. The 36-volt wheel motor offers improved acceleration and greater efficiency for longer rides and better handling. The third wheel makes ZAPPY3 easier to balance for beginners, but also more maneuverable for experts. The steering radius literally turns on a dime and even goes in reverse. Quiet and rechargeable, ZAPPY3 folds in moments with the tools provided for easy storage or transport. A convenient LED fuel gauge on the handlebar keeps track of the battery charge and a key is included for locking the scooter when not in use. Schneider added that ZAP is in discussions to bring some of its other new products to nationwide retailers, including its new lithium-ion battery system, ZAP Portable Energy™, which powers a wide range of mobile electronic devices. ZAP also announced this week that the EPA has approved the 60-MPG SMART Car from Europe, clearing the way for U.S. sales by ZAP. ZAP pioneered the electric scooter market in 1997 with its world-reknown ZAPPY Classic folding electric scooter. The new ZAPPY3 continues ZAP's drive to be a leader for Zero Air Pollution® (ZAP) technologies. Consumers can now purchase the ZAPPY3 electric scooter at http://www.costco.com.