ZAP highlights recent developments at annual shareholder meeting - SMARTCAR displayed

Submitted by Anonymous on Sun, 07/25/2004 - 20:00

SANTA ROSA, California (July 26, 2004) - Advanced technology vehicle company ZAP (Stock Symbol: ZAAP) introduced the new SMARTCAR to shareholders at its annual meeting over the weekend as well as announcing an infusion of $1.5 million in new capital.

ZAP's partner SMART Automobile LLC displayed a HUMMER with a SMART Car attached to the roof outside its 2004 shareholders meeting.

During the shareholder meeting, which took place at the Hyatt Vineyard Creek Hotel on Sunday, ZAP presented the SMART car to its shareholders for the first time and announced several recent financial developments.

ZAP Chief Financial Officer William Hartman detailed ZAP's financial results for 2003 and closed with a number of transactions impacting the Company's unaudited financial position so far in 2004, as follows:

- ZAP's cash position has increased by $1.5 million to over $2.0 million

- Assets have increased by $9 million to over $18 million

- A $45 million floor plan line of credit has been secured for ZAP auto dealers

- Two legal matters have been settled with minor financial effects

"In the three years I have been with ZAP, the Company is in its strongest financial position," said Hartman.

In May, ZAP signed an agreement with SMART-Automobile LLC to be the exclusive distributor and licensed manufacturer in the United States for their SMARTCAR. Smart-Automobiles LLC is an independent, privately held company that oversees the direct importation and modification of SMARTCARS to meet U.S. standards.

During the ZAP shareholder meeting, SMART Auto President Thomas Heidemann was on hand to introduce the car while unveiling his latest project, a HUMMER Sport Utility Vehicle with a SMART Car chassis built into the bed, as a way to promote his partnership with ZAP.

"We think the SMART car will have much of the same excitement and market-appeal as the HUMMER, particularly now with higher gas prices," said Heidemann. "My SMART-HUMMER shows both ends of the automotive spectrum and illustrates that everyone has room in their lives for an SUV and, equally, a fun, fuel-efficient micro-car like the SMART."