ZAP Purchase Orders Increase to more than $200 Million for High-Efficiency ZAP! SMARTCAR Next-Generation Automobile

ZAP Purchase Orders Increase to more than $200 Million for High-Efficiency ZAP! SMARTCAR Next-Generation Automobile

Record-High Oil Prices Drive Second $100 Million in New Orders as U.S. Demand for Modern European-Made Coupe Grows

SANTA ROSA, Calif.--March 22, 2005--ZAP (OTCBB:ZAAP), pioneering the next generation of advanced transportation and energy technologies, announced today that dealer purchase orders for its Smart Car high-gas-mileage vehicles has increased to more than $200 million as American demand for the unique microcar has spread. ZAP CEO Steve Schneider made the announcement.

On March 9, ZAP announced that it had crossed the $100 million purchase order milestone for the Smartcar Americanized by ZAP from U.S. auto dealers. Demand for the highly efficient gas-powered car has accelerated as rising gas prices continue to fuel consumer interest in next-generation automobiles, according to Mr. Schneider. Oil prices recently climbed to more than $50 per barrel, rising last week to a new high of $55 per barrel. Gasoline prices at the pump now top $2.00 per gallon in much of the country, while observers suggest that prices may reach $3.00 per gallon by summertime.

"ZAP continues to work to tap into this incredible demand for fuel-efficient cars as gas prices continue to rise around the country," said Mr. Schneider. "We are meeting with several potential industry partners to expand our ability to respond to the demand these new purchase orders represent. We are also evaluating new car models and technologies that will expand our product line, while offering ZAP dealers the latest in automotive innovation."

The small, stylish cars create excitement wherever they are shown, even before the cars are available commercially. Last week, ZAP attended the ValueRich Small-Cap Financial Expo in West Palm Beach, Fla., and hosted a showcase of its ZAP Cars at its local authorized ZAP Dealer. Frank Ortiz, of Foreign Affairs Auto in West Palm Beach, said the dealership has been inundated with hundreds of calls per day from interested consumers.

"The showcase was designed to be a sneak preview of the cars in South Florida, but I've had to hire extra people and expand our phone system just to respond to all the interest," said Mr. Ortiz. "We're only authorized to give test drives on our private road and though we don't have any details on when the cars will be available, people still offer to buy the cars on the spot. We even had to restrict the road testing to pre-qualified buyers because of all the curiosity seekers just wanting to see and drive it." ZAP is also displaying the all-electric ZAP Intimidator L.U.V. automobile at Foreign Affairs Auto.

ZAP holds all rights to Americanize the European-made SMARTCAR to meet U.S. safety and emissions standards. The small and maneuverable SMARTCAR is one of the most fuel-efficient internal combustion vehicles available. With the ability to park in the space of a motorcycle, the two-passenger SMARTCAR coupe is designed to address many of the serious problems of crowded urban traffic and rising fuel prices.

The delivery schedule of the Smart Car Americanized by ZAP has not been determined at the present time. ZAP is continuing to assess potential additional partners to supply the fast-growing U.S. demand for Smart Cars, and has been conducting meetings with prospective manufacturing partners and suppliers in the U.S., China and in other countries. The Company has also stated that efforts to broaden its ZAP auto dealer network throughout the country have proceeded faster and more successfully than initially projected. The Smart Car debuted to U.S. auto dealers in January, at the annual convention of the National Automobile Dealers Association Dealers (NADA) in New Orleans.