ZAP Ramping Up in South America

SANTA ROSA, California (October 2, 2003) - During its annual shareholder meeting, ZAP (OTC BB:ZAPZ) announced that production for its electric bicycles and scooters is now in operation in South America and the Company is recruiting distribution partners in anticipation for the summer season. ZAP held its annual meeting on Sunday, September 28th in downtown Santa Rosa, California. During the meeting ZAP showcased its new WORLDCAR(TM), believed to be the first production electric car imported from China, as well as the new ZAPBIKE(TM), ZAP's first vehicle using a new generation of electric vehicle battery. ZAP also hosted tours of its new headquarters and store. Company officials reported on a variety of developments within the company, including news that ZAP is making progress in South America. ZAP's Director of International Affairs Fernando Cancela also serves as President for the Company's South American subsidiary, ZAP Latin America. During the shareholder meeting, Cancela announced that the Company's patented ZAP® Power System and ZAPPY® folding electric scooter are now in production and believes ZAP bikes and scooters can help commuters throughout Latin America. "Automobiles are a luxury in South America and gasoline is expensive," says Cancela. "One of the goals of ZAP is to make transportation that people can afford and nowhere is this more necessary than in South America. The average commuter travels by bus and the system is very slow. But on a ZAP bike or scooter, they can save time while saving money. Every country in South America can benefit and ZAP is seeking distribution partners to accelerate sales." Cancela says that ZAP Latin America can also benefit from trade incentives offered through MERCOSUR, a trade agreement between Brazil, Argentina, Paraguay and Uruguay, a market with more than 300 million people, where ZAP can export its bikes and scooters without custom fees. He says that ZAP is also seeing demand from Central America, including a Mexican company that is establishing distribution for ZAP.