ZAP signs Definitive Stock Agreement for Smart car

ZAP signs Definitive Stock Agreement for Smart car

SANTA ROSA, California (November 8, 2004) - Advanced automotive technology Company ZAP (OTC BB:ZAAP) announced today that it has signed a stock conversion agreement with Smart-Automobile, LLC for the $8 million in preferred stock that were issued in conjunction with the April 2004 $10 million distribution agreement.

This agreement outlines the formula for converting the $8 million of ZAP Preferred Shares into ZAP Common Stock by Smart-Automobile based upon certain performance objectives.
The Company has also filed with the Secretary of State of California to Amend and Restate its Articles of Incorporation to fix the rights and conditions of Preferred Stock.

ZAP and Smart-Automobile are preparing to launch marketing and distribution for the car in the U.S. pending federal approval. ZAP has a near-term goal of 150 dealer outlets by early 2005 and is planning its first public display for the cars at the San Francisco International Auto Show, open to consumers November 21-28 at The Moscone Center in downtown San Francisco.

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