5/03/2006 ZAP Rolls Out All Electric City Car to Combat High Gas Prices

ZAP Rolls Out All Electric City Car to Combat High Gas Prices

ZAP XEBRA(TM) City-Car Now in Production in China

SANTA ROSA, Calif.--May 3, 2006--Automotive pioneer ZAP (NYSE Arca:ZP) (PCX:ZP - News) announced today the start of regular production for its all-electric XEBRA 'City-Car' and is organizing test-drive events in Santa Rosa, California for dealers, fleet managers and the general public.

ZAP is holding test drive events by appointment for its dealers and large fleet managers initially and has scheduled a public test drive event on May 13. To participate in a ZAP test-drive event for the all-electric XEBRA City Car, sign up by visiting the ZAP Website at http://www.zapworld.com.

ZAP has entered into a manufacturing contract with a Chinese automaker to produce a unique car aimed at filling the need for gas-free, all-electric cars that are practical and affordable in the United States. ZAP says the XEBRA was designed to meet the need for a gas-free mode of transportation that fits daily city driving.

ZAP calls the new XEBRA a "City Car," a unique design suitable for urban, non-freeway driving. The car was designed to be a fun, inexpensive vehicle for running errands around the city or as an economy vehicle for municipal and corporate fleets. Unlike the hybrids currently on the market in the United States, the new ZAPCAR(TM) needs no gas at all, just plug into any conventional outlet.

"Ever since this crazy increase in gas prices, I began commuting in the XEBRA," said ZAP Dealer Development Manager Philip Tarazi. "The response has been incredible; rain or shine I get hand waves and thumbs-up. People know it is the right thing to do. I'm looking forward to delivering XEBRAs to our dealers so others can ride the future."