ZAP Turns 14 September 23, 2008

SANTA ROSA, California (September 22, 2008) -- For the past 14 years, ZAP (OTC BB: ZAAP) has had a vision of the future in which environmentally and socially conscious consumers started opting for less polluting, less energy-intensive or less expensive models of transportation. We have offered electric bicycles, bike kits, scooters, mopeds, motorcycles, ATVs, dirt bikes, seascooters, go-karts, golf-carts, low-speed vehicles--even cars.

Well, the future came faster than even we envisioned, mostly because of skyrocketing US gas prices. Luckily ZAP was ahead of the curve and from our most recent record sales results for August you will see that we are working to capitalize on the opportunity.

Talk about high gas prices, last September, gas prices were about $2.80/gal., but rose to over $4.00/gal. in June and July. Recently it has receded, but if you think they are going to go back to last year's levels, then consider this: in 2003, gas was about $1.35/gal and hasn't looked back.

What's making gas prices harder to bear is the struggling US economy. Not only is gas expensive, but also everything connected to gas like consumer goods, groceries, and imports. And, there is less money to go around because of unemployment, inflation, and the weak US dollar. Let's just say that salaries in the US have not gone up with gas prices.

Perhaps the most important factor for ZAP is that there are very few US street-legal electric vehicles in production today. Which is why our 14th year has been the year of the Xebra (pronounced 'zebra'). While many are talking about how one day we will all be driving affordable electric cars, about three years ago ZAP grew tired of waiting and made the decision to roll out what may be the most popular electric car in the US today.

While automotive pundits crack jokes from their computer terminals about our quirky little car and truck, what ZAP has found is a large population of car-buyers who love the Xebra and have been tired of waiting for the industry to deliver electric cars. As we set up more dealerships that offer sales and service for the Xebra, we continue to get back positive testimonials about how much people love their Xebras. One customer in Grass Valley, California called it "the Model T of the electric car." Comparing the Xebra with the most influential car in history might be a little premature, but because ZAP designed it to be affordable, practical and built on an assembly line, we couldn't have said it better ourselves.

Because of the Xebra and because of our timing in the marketplace, the media has recognized ZAP's leadership efforts in electric vehicles this past year. The February issue of Popular Mechanics featured the Xebra in an article, "5 Electric Cars Making History, Not Hype" showing our Xebra being used by UPS. A March 9, 2008 New York Times story "Alternative Dealers Selling Alternative Power" reported that the Xebra was the top selling model at the nation's top electric car dealership in Portland, Oregon. In June, CNN did a round up of five electric cars you can buy today, although all of the cars cost more than the Xebra (one a hundred gees) and the other three are limited to 25 MPH. Plus, they didn't even mention that we have a truck, so we count 6 electrics you can buy today, cars or trucks. Even the Wall Street Journal took notice in July when they found a Xebra customer in Houston, Texas in an article entitled, "You Know Gas Prices Are High When Texans Start Driving Golf Carts." Only it was no golf cart and it had the Xebra Xero solar-electric car option. Right there in Houston, really.

Needed: A Plug-In HummerWhat's even more exciting is the future that is taking shape for ZAP. Our ZAP Alias is in the R&D phase, which Forbes Magazine took notice of in their June Investment Guide in an article "Needed: A Plug-In Hummer." A prototype of the Alias was recently unveiled at the groundbreaking ceremony for a new joint venture factory in Kentucky. "Made in the USA" electric vehicles is a bold new initiative that ZAP is taking in partnership with Integrity Automotive, a joint venture to build a factory for ZAP electric vehicles in Franklin, Kentucky.

What more can we say about our 14th year? It's been interesting because of all the competition that is coming out of the woodwork to bring electric cars to reality. Also, the auto industry as a whole is in turmoil and it will be interesting to see how it all shakes out. Also the green movement has been hard not to notice as more and more are shifting their focus towards environmental and energy efficient technology initiatives. Where will that leave ZAP? Only time will tell, but with 14 years experience in the electric vehicles, we believe ZAP has sparked an opportunity for itself and for the entire industry.