ZAP Begins Auction of U.S.-Compliant Smart Car on eBay

SANTA ROSA, Calif.--June 15, 2005--ZAP, pioneering the next generation of advanced transportation and energy technologies, has announced that a live auction is now underway on eBay for a Smart Car Americanized via ZAP, marking the first time a U.S.-compliant model would be available for purchase by the general public.

To bid on the Smart Car Americanized by ZAP, visit http://www.eBay.com and use the keyword "Smart Car" or eBay item number 4556842599 to bid on the car.

ZAP is auctioning the Smart Car on eBay to raise awareness of its marketing strategy to start a dealer network for fuel-efficient, low-emission and advanced technology vehicles. With the Smart Car listing, ZAP is seeking to make a statement about the importance of improved transportation technology to promote cleaner air and increased fuel efficiency. The Company will share auction proceeds equally with The American Lung Association and the U.C. Davis Institute of Transportation Studies. ZAP also wants to make a statement about rising gas prices and the Company's mission to help consumers contain transportation costs: the auction winner of the Smart Car will receive a one-year supply of gasoline. Restrictions apply; see listing for detail.

ZAP recently reported that it is preparing to deliver U.S. certified Smart Cars to qualified dealers in eight states and is organizing service training later this summer. The first Americanized Smart Car was delivered to a Nevada purchaser several weeks ago in a ceremony in Reno that attracted international media attention and widespread interest from potential new consumers.

ZAP is organizing U.S. marketing and distribution for the Smart Car, a highly fuel-efficient vehicle that has created worldwide interest since its European release in 1998. The Smart Car ForTwo Coupe is popular among drivers in Europe, Canada and other countries. But with U.S. gas prices at record highs and American drivers increasingly demanding greater fuel efficiency and advanced energy transportation solutions, ZAP CEO Steve Schneider is confident that the popularity of this internal-combustion microcoupe will continue to grow in the domestic market. At the same time, dealers across the country are also expressing enthusiasm about the chance to sell these cars.

ZAP is now establishing a distribution portal and hub of automotive dealerships in the United States that cater to car-buyers looking for the next generation in automotive fuel technologies, including zero-emission electric vehicles, hydrogen fuel cell technology, and other energy-efficient, low-emission and advanced technologies. The Smart Car is one of several vehicles that ZAP is planning to offer through this distribution network.

ZAP listed a Smart Car on eBay previously, but the auction was delayed to finalize U.S. compliance of the car. According to an eBay spokesperson, the auction website wanted to see the 'Americanization' of the car completed before allowing it to be sold. CEO Schneider noted that the Americanization of the car has now been completed to U.S. Department of Transportation and Environmental Protection Agency standards. Furthermore, the U.S. DOT has acknowledged a certificate of compliance that lifts a Performance Bond, allowing the import and certification of the Smart Car. These regulatory approvals clear the car for sale in 45 U.S. states. Excluded are California and four other states that follow different emissions testing procedures, which are not yet completed.

About ZAP

ZAP, Zero Air Pollution(R), has been a leader in advanced transportation technologies and energy products since 1994. ZAP has a 10-year license to 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. For more information, visit http://www.zapworld.com. For investor-specific information, visit http://www.trilogy-capital.com/tcp/zap. To read or download the Company's Investor Fact Sheet visit http://www.trilogy-capital.com/tcp/zap/factsheet.html.

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