ZAP Take Possession of First Smart Car Shipment

ZAP Takes Possession of First Smart Car Shipment

SANTA ROSA, Calif., June 28, 2004 -- Advanced technology vehicle company ZAP (Stock Symbol: ZAAP) announced today it has purchased its first shipment of Smart cars.

Already on sale in 30 countries except the United States, the gas-powered Smart car is starting to get more attention in America as drivers search for ways to save money on record gas prices.

In May, ZAP signed a $10 Million purchase agreement with SMART-Automobile LLC to be the exclusive distributor and licensed manufacturer in the United States for the SMART cars. The plan calls for ZAP to distribute 15,000 units annually by 2005 as part of its automotive division specializing in advanced transportation technologies, including more fuel-efficient automobiles powered by gasoline, electric and other fuels.

Smart-Automobiles LLC is an independent, privately-held company that oversees the direct importation and modification of automobiles to meet U.S. standards.

ZAP now has ownership of the first 94 Smart cars in a facility in Southern California where they are being upgraded to meet U.S. standards. The cars are the first available in the United States that have been crashed tested according to Department of Transportation safety standards.

ZAP says they have been receiving thousands of emails and phone calls from people around the world interested in buying and selling the Smart car. Over 1,500 people have visited its website www.zapworld.com to pick their favorite colors and register to purchase the cars.

Schneider and Aronsson outlined their vision of demonstrating the new Apollo Fuel Cell and Lead Cobalt Battery in ZAP automobiles in what they say would be the world's first coast-to-coast "Hydrogen Expressway" from Florida to California. Hydrogen required for the fuel cells will come from liquid ammonia (NH3), which would be stored in large tanks at gas stations along the way. Electric vehicles would "fill up" with liquid ammonia, which then feeds into a patented Ammonia Cracker on board the vehicle, similar to catalytic converters in modern automobiles. The Ammonia Cracker would convert the ammonia to hydrogen for the fuel cells.

In April 2004, California Gov. Arnold Schwarzenegger set a goal of having a network of fueling stations throughout the state to power hydrogen cars by 2010. However, according to Aronsson, Apollo's patented Alkaline Hydrogen Fuel Cell is ready for production now. Because it is fueled by hydrogen from readily available ammonia, he envisions that a California-style "Hydrogen Electric Vehicle Expressway" could be implemented in less than a year.

"The immediate use of ammonia can jump-start the country into a true hydrogen economy," said Aronsson. "Ammonia is the second most common chemical produced in the world and can be made from natural gas or renewable energy. It is shipped by truck, rail, pipeline, ship and barge and is commonly used as fertilizer or in household refrigerators and can be competitive in price to gasoline. Ammonia fueling stations could be set up at very little cost, as the infrastructure already exists throughout the country. Ammonia distributors could begin making weekly deliveries of ammonia to gas stations in the 100 largest metropolitan areas of the U.S., serving 70 percent of the population. Former plans, proposed by others, of equipping gas stations with mini-factories for producing hydrogen by electrolysis at a cost of $1 million per gas station, could be replaced by this new, low-cost system. The new fueling system would make it possible for thousands of ZAP Hydrogen Fuel Cell Cars to operate throughout the country, silently, and with zero emissions."

About Apollo Energy Systems

Apollo Energy Systems, Inc. is in the business of developing, producing, marketing and licensing new energy products and energy systems utilizing hydrogen fuel cells, batteries, renewable resources and space sciences. Apollo has developed, produced, and field-tested Alkaline Fuel Cells and Lead Cobalt Rechargeable Batteries for which a number of patents have been issued with additional patents pending. The Company has also developed Ammonia Crackers for the production of hydrogen for the fuel cells. A patent is pending on these devices as well. For more information, visit http://www.apolloenergysystems.com.