ZAP Delivers First Smart Car Americanized by ZAP to U.S. Consumer

RENO, Nev.--May 1, 20058, 2005--ZAP (OTCBB:ZAPZ), pioneering the next generation of advanced transportation and energy technologies, has announced the delivery of the first Smart Car Americanized by ZAP to a private U.S. consumer. Delivery of the high-efficiency Smart Car microcoupe took place during a ceremony at an authorized ZAP dealership in Reno, Nevada, on Tuesday.

The delivery is a marketing milestone for ZAP that validates the Company's successful efforts to develop necessary technology to Americanize the Smart Car and obtain the governmental authorizations required for sale of the European-made vehicle in the United States.

Las Vegas residents Phil and Leigh Aurbach took receipt of the keys to their Smart Car in the Reno ceremony with ZAP officers and dealers on Tuesday. "We went on our honeymoon to France a little over a year ago and saw the Smart Car everywhere, and fell in love with it. We have been trying to get one for more than a year in the United States," said Mr. Aurbach, an attorney. "We're glad that ZAP is taking the lead now to bring the first Smart Cars to the United States."

The Smart Car delivery was sponsored by two Reno-area authorized ZAP dealerships. "We welcome the opportunity to offer the first Smart Cars to American Consumers," said Keith Spradling, a ZAP dealer. "After all the success that they have had in Europe, we look forward to a successful dealership with ZAP. I remember the first fuel efficient cars in the early Seventies and it seems like we have a similar opportunity today. But these are truly the next generation of fuel-efficient cars -- and with safety foremost in mind."

ZAP car dealer Bob Chauvin added, "It's appropriate that the biggest little car in the world has its U.S. launch in Reno -- the Biggest Little City in the World."

The vehicle delivered on Tuesday is the first Smart Car fully compliant with U.S. emissions and safety regulations. The delivery of the vehicle to the first private consumers was met with national media and press attention, as well as public interest from spectators who arrived at the dealership after hearing about the ceremony on local radio stations earlier that day, according to ZAP CEO, Steve Schneider. "They wanted to know how they could get one of their own Smart Cars," he said. "We believe this is a reflection of the strong demand for the Smart among drivers across the United States who are seeking a new motor vehicle solution to the problem of rising gas prices. The Smart Car is one of the most fuel-efficient vehicles on the planet, and has an innovative design that is stylish, safe and functional."

ZAP is in discussions now with a number of potential partners to meet the strong demand for the Smart Car. Delivery of the vehicles represented by the current level of purchase orders is conditional upon the company's execution of strategic relationships with major automotive manufacturing partners, to enable ZAP to support the full sales pipeline.

About ZAP

ZAP, Zero Air Pollution(R), has been a leader in advanced transportation technologies and energy products since 1994. ZAP owns the technology developed by Smart-Automobile LLC to Americanize the popular European-made Smart Car for the U.S. marketplace. ZAP Americanizes the Smart Car to meet U.S. federal and state safety and emissions standards. ZAP is not affiliated with, or authorized by, smart gmbh, the manufacturer of SMART automobiles, or the smartUSA division of Mercedes-Benz LLC, the exclusive authorized U.S. importer and distributor of those vehicles. The Smart Car is manufactured by global automotive company DaimlerChrysler. ZAP purchases its vehicles from non-affiliated direct importer Smart-Automobile LLC.