ZAP Board elects to hold on stock split

ZAP Board elects to hold on stock split

SANTA ROSA, California (December 10, 2004) - Automotive manufacturer ZAP (OTC BB:ZAAP) announced today that its Board of Directors have decided to hold on the forward stock split announced on November 23 because of recent developments.

"We believe our Shareholders would benefit more from the current capital structure," said Steve Schneider, Chief Executive Officer of ZAP. "We listen to our shareholders and to the investment community and this decision is based this feedback as well as the view that our recent actions to strengthen our capital structure and marketability of our stock to potential new investors is working. Furthermore, with the current price of the stock, there is the potential for institutional investors to create a position in ZAP."

"Indeed, today I am announcing that an institution has recently purchased over 500,000 shares of ZAAP common stock," added Schneider. "With the growing volume in our stock, it is likely that this institution and others are already beginning to trade stock in ZAP. We expect that with the recent developments at the Company, combined with continued progress in growing our business, will contribute to greater shareholder value creation going forward."

On November 22, ZAP announced that the SMART Car was granted a certificate of conformity by the U.S. Environmental Protection Agency, clearing the way for ZAP to organize distribution in the U.S. for the first time. A ten-year old public Company, over the past two years ZAP has expanded its business plan to include automobiles powered by fuel efficient technologies, including electric and hydrogen energy systems.

ZAP is not affiliated with, or authorized by, smart gmbh, the manufacturer of SMART automobiles, or the smartUSA division of Mercedes-Benz LLC, the exclusive authorized U.S. importer and distributor of those vehicles. ZAP purchases its vehicles from non-affiliated direct importer Smart-Auto LLC.