ZAP Receives $500,000 in Financing

SEBASTOPOL, California- (September 24, 2002)-ZAP (OTC BB:ZAPZ) of Sebastopol, California, announced today it has received $500,000 in new financing from Hong Kong R&D firm Daka Development. On June 17, 2002, Daka granted ZAP a $500,000 loan. Under the terms of the agreement, Daka had the option to convert the loan to stock. On September 17, 2002, ZAP received notice that Daka exercised its option to convert the entire amount of the note to ZAP common stock. Daka Development is a product development company founded to create, design, engineer, manufacture and market an array of consumer products for competitive global markets. One of the shareholders and board members of Daka Development is Sir Clive Sinclair, one of Britain's most famous inventors, credited with the invention of the calculator, digital watch and pocket TV as well as other innovative, energy efficient products. Daka is assisting ZAP in the development and marketing of new products for the alternative energy and transportation market. The two companies recently launched sales of the SEA-DOO® SEASCOOTER™, an electric propulsion device for swimmers and divers. "At Daka we are always looking for companies around the world focused on innovative products and work with them to address their market swiftly and at a cost that allows them to prosper," said Raymond Chow, CEO of Daka. "In our business affairs we strive for results that show reciprocal growth and development, which has been a key to our growth. We believe that ZAP is one of the leading companies in the advanced transportation market and that this investment will help ZAP and Daka achieve their goals together." ZAP is a publicly owned company with stock trading under the symbol ZAPZ. Founded in 1994, ZAP helped pioneer the market for personal electric transportation with its electric powered bicycles, scooters. The company recently entered mergers with two companies involved in automotive marketing and distribution, giving ZAP access to an array of advanced transportation vehicles and technologies. For additional information, visit http://www.zapworld.com or call 800-251-4555. Certain statements and information included in this press release constitute ``forward-looking statements'' within the meaning of the Federal Private Securities Litigation Reform Act of 1995. Such forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of the Company to be materially different from any future results, performance or achievements expressed or implied in such forward-looking statements. Additional discussion of factors that could cause the actual results to differ materially from management's projection, forecasts, estimates and expectations is contained in the Company's Form 10-K and other SEC filings.