ZAP Expands Presence in China

ZAP Expands Presence in China

Acquires Chinese Manufacturing Plant

SANTA ROSA, California (January 10, 2005) - Advanced transportation pioneer ZAP (OTC BB:ZAAP) is expanding its business activities in China with the announcement today of a joint venture Company, ZAP (China) Ltd., to leverage China's emerging manufacturing capabilities.

ZAP CEO Steve Schneider (left) visited the site of the nearly completed ZAP (China) manufacturing facility during a trade mission to China in 2003.

ZAP will take the lead as the parent company in ZAP (China) with an 80 percent ownership stake in the joint venture Company.

ZAP (China) will finish its first phase of development with the completion of a 1,280 square meter manufacturing and assembly facility in Nanchang. ZAP CEO Steve Schneider envisions expanding the ZAP (China) facility to create a ZAP Technology Center utilizing the surrounding 45-acre business complex for manufacturing, assembly, quality control, research and development and more.

"We are excited about the growth potential of China in manufacturing as well as one of the world's fastest-growing consumer markets," said Schneider. "ZAP is becoming one of the most recognized names in the emerging advanced automotive and energy markets, and these ventures in China help ZAP move towards its goal of creating a global consumer brand for this market."

Schneider says a major focus for ZAP (China) will be the development and manufacturing of fuel cell technologies and advanced battery technologies. ZAP recently signed an exclusive distribution agreement with fuel-cell maker Anuvu Incorporated for the development of hydrogen-electric fuel cell hybrids. ZAP is also part owner of Zibo Enterprises, a Chinese-based manufacturer and developer of lithium-based battery technologies.

ZAP is working to create a national distribution network in the U.S. that caters to fuel-efficient car-buyers with advanced automotive technologies, including cars that run on electricity, hydrogen and other fuels. ZAP is also packaging some of its "spinoff" technologies for consumer elecronics, including its recent launch of a new line of portable energy systems for laptops and cell phones as well as the establishment of a new division to target business opportunities in advanced energy technologies.