ZAP Attracts Distinguished International Finance Executive

ZAP Attracts Distinguished International Finance Executive

Max Scheder-Bieschin Named as ZAP Executive Vice President

SANTA ROSA, California (October 18, 2005) - Transportation pioneer ZAP (PCX:ZAAP - News) announced today that it has named Max Scheder-Bieschin as Executive Vice President to assist in the development of the Company's long-term strategic business plan targeting growth opportunities in the automotive industry.

Newly appointed ZAP Executive Vice President, Max Scheder-Bieschen (left) and CEO Steve Schneider (right) met with representatives with the Rio de Janeiro government recently, including (2nd from left to right) Wagner Granja Victer, Secretary of State for Rio de Janeiro; Jorge Picciani, President of the Legislative Power of Rio de Janeiro; and Washington Reis, Mayor of Duque de Caxias City.

Max Scheder-Bieschin is a senior investment banker with an 18-year track record of success in all aspects of corporate finance, including mergers and acquisitions, private placements, as well as debt and equity offerings. He was employed by investment banking firms in the United States and Germany, including Deutsche Bank, ING BHF Bank and Bear Stearns, and during his tenure established a strong client base in the automotive industry. Mr. Scheder-Bieschin speaks German, Spanish and English. Max recently returned to the U.S. after seven years in Germany and settled in northern California with his wife and three children.

"The Board and I look forward to having Max help us manage the roll-out of our high-efficiency automotive portal as well as solidify our recognized position in the personal transportation market," said ZAP CEO Steve Schneider. "We started with the Smart Car and now are excited to be able to introduce new prototypes and production vehicles at next month's San Francisco Auto Show. With Max on board, we broaden our management team and enhance our ability to execute on our business model."

"I look forward to working with ZAP to address the exciting challenges and opportunities facing the company and society today," said Mr. Scheder-Bieschin. "ZAP has always been a pioneer in alternative transportation, be it in electric scooters and bicycles and more recently as an independent portal for fun, refreshing, environmentally sustainable vehicles. With gasoline prices and global warming, society is finally realizing we are living beyond our means. This, coupled with the many new technologies being developed for electric and higher efficiency vehicles, places ZAP in a great position to successfully execute on its business plan."

"My recent trip with ZAP to visit OBVIO ! Brasil I believe highlights the potential we and our partners in sustainable transportation have. OBVIO ! is combining European fashion, style and quality with a close to Chinese cost base to build a unique urban car we know Americans want. We saw it with the demand for the Smart Car. And, not only will the OBVIO ! offer extremely high mileage, but be able to do so using gasoline, alcohol or any combination thereof without sacrificing performance. In short, there are technologies and know-how outside the U.S. that the American consumer should have access to and we aim to deliver that."