ZAP Completes $3.25 Million Transaction

SEBASTOPOL, Calif. (March 26, 2003) – Electric transportation pioneer ZAP (OTC BB:ZAPZ) announced today that it has completed the purchase of a historic $3.25 million dollar ($3,250,000.00) office building in downtown Santa Rosa which will house its corporate headquarters.

ZAP announced it has completed the purchase of the building that houses its ZAP Store at 4th and B Street in downtown Santa Rosa.

ZAP purchased the building from Virginia investment company ATOCHA, L.P. for $3.25 million dollars ($3,250,000.00) in essentially a cashless transaction that includes stock, convertible debt and warrants. Thomas J. Cirrito, Sr., a general partner of ATOCHA, L.P., spearheaded the deal. "Now is the perfect time for an investment in such a company as ZAP," said Cirrito. "With gas prices hitting all-time highs and the general uncertainty of oil markets, people are looking for transportation alternatives. ZAP's technology seems to be one of the best ways of dealing with air pollution and many of the other challenges facing our world today." Mr. Cirrito has an extensive background in telecommunications, having served as a director of both World X Change and Paradigm 4. He was the founder of the Long Distance Wholesale Club, a leader in 10-10 long distance, which merged with Telco in 1996 to form the nation's fastest growing long distance company. Cirrito's interest has grown in recent years to explore advanced transportation and other forms of conservation, and he is currently an advisor to water transportation company, Aquarius, of Port of Piraeus, Greece. ZAP CEO Steve Schneider says the vision shared by Cirrito helped bring them together. "We appreciate this investment and vote of confidence in ZAP by ATOCHA," says Schneider. "We believe that in light of current concerns about air pollution, energy security, global climate change, ozone layer depletion, dependence on imported oil, and related concerns which contribute to international political, military and economic instabilities, that now, more than ever, is the time for ZAP. This showcase location will greatly assist in the positioning of the company."

The location purchased by ZAP was reportedly first constructed in 1906 to house long time Santa Rosa retailer The White House.

The building purchased by ZAP is located at 501 Fourth Street at the corner of B Street in the city center of Santa Rosa, California, seven miles away from its current location in Sebastopol. Called the Carithers Building by local historians, the original building was reportedly constructed in 1906, the year of the San Francisco earthquake. The renovated building is one of several downtown buildings preserved from the original Courthouse Square complex and is situated across the street from the downtown's biggest shopping mall. ZAP is now using the first floor of the three-story, 20,000 square foot building as a retail showcase for its electric vehicles, but plans to move its executive offices, accounting, sales and marketing, service and other functions into the new building this spring. ZAP plans to move about 30 employees to the new building, but has space to accommodate more and Schneider says ZAP intends to initially sublet part of its office space for professional services in accounting, legal, finance, marketing and other areas. ZAP says it intends to retain its warehouse space in Sebastopol, but will move out of its location at 117 Morris Street, where the headquarters has been housed since 1995.

ZAP's new building is called the Carithers Building by local historians. In 1941, the "Carithers Block" was known as Santa Rosa's shopping district.