Financial Information

ZAP And Subsidiaries, Unaudited Statement Of Operations*

*Numbers are in Thousands, except share amount

  Three months ended September 30, 2008 Three months ended September 30, 2007 Nine months ended September 30, 2008 Nine months ended September 30, 2007

Net Sales

$3,062 $2,019 $6,041 $4,561
Cost of Goods Sold $2,692 $1,476 $5,354 $3,748
Gross Profit $370 $543 $687 $813
Operating expenses $2800 $4,067 $7,829 $21,879
Gain (loss) from operations ($2,430) ($3,524) ($7,142) ($21,066)
Other income (expense) $53 $220 $326 $821
Gain (loss) before income taxes ($2,483) ($3,744) ($7,468) ($21,887)
Net gain (loss) per common share ($0.04) ($0.08) ($0.13) ($0.49)
Weighted average of common shares 59,372 46,957 58,665 44,683