ZAP Provides Progress Report on Smart Car Orders

ZAP Provides Progress Report on Smart Car Orders

Company Positioning to Become Dominant Force in High-Efficiency Transportation Marketplace in U.S.

SANTA ROSA, Calif.--(BUSINESS WIRE)--May 24, 2005--ZAP (OTCBB:ZAAP - News), pioneering the next generation of advanced transportation and energy technologies, has provided a progress report on its recently announced purchase order and other discussions to import the high-efficiency Smart Car micro-coupe.

"We are pleased about the progress we have made in our efforts to bring the Smart Car to U.S. consumers," said Steve Schneider, CEO of ZAP. "Notwithstanding some confusion in the marketplace about our recent orders for Smart Cars, we are happy to report that we have held meetings in Germany on March 21 with senior management of smart GmbH prior to submitting a $1 billion purchase order for Smart Cars, and we believe that there is a possibility of working together in the future to meet the incredible demand among U.S. drivers for the unique, fuel-efficient Smart Car microcoupe. It makes sense for us to work together.

"On a parallel course we are also meeting with tier one auto manufacturers this week," said Mr. Schneider. "This will give us capabilities similar to those of the manufacturer to Americanize higher volumes of vehicles for the Smart Car and other high efficiency vehicles."

Additionally, ZAP is conducting meetings, discussions and negotiations with a number of international distributors and suppliers that possess extensive inventories of Smart Cars, as part of the Company's program to make the Smart Cars available to U.S. drivers. ZAP owns the technology required to Americanize the high-efficiency cars. ZAP recently announced that a model of the Smart ForTwo Coupe had received full regulatory approval from the federal government, clearing the way for sale in 45 U.S. states, and recently announced delivery of the first Smart Car Americanized by ZAP to a U.S. consumer in Reno, Nevada. The delivery was a proof-of-concept of ZAP's business plan to deliver Smart Cars Americanized by ZAP to the U.S. market.