ZAP CEO Meets with Auto Manufacturer OBVIO! and Suppliers in Rio de Janeiro; U.S. Auto Export Contract Attracts Interest of Brazilian Government, Media

SANTA ROSA, Calif.--Oct. 3, 2005--Transportation pioneer ZAP (PCX:ZP) announced today that CEO Steve Schneider is holding meetings in Rio de Janeiro with officials from OBVIO! Automotoveiculos S.P.E. Ltda. for a new Brazilian urban car.

OBVIO! is arranging meetings for ZAP Chief Executive Officer Steve Schneider with its various suppliers for the various components of the cars. According to officials from OBVIO!, the Rio-based automobile company has attracted the attention of the Brazilian government and media interested in its manufacturing of urban cars for export to the United States.

In September, ZAP signed an agreement with OBVIO! for the exclusive North American distribution of two models of high-efficiency, sub-compact urban cars manufactured in the greater Rio/Sao Paulo metropolitan area. ZAP and OBVIO! expect to unveil the prototypes in the U.S. by the end of 2005. Initial plans are to roll out the vehicles in 2007. Under the terms of the agreement, ZAP is ordering 50,000 vehicles from OBVIO! during the three year period following initial delivery.

ZAP's business plan is to develop a distribution network that caters to buyers of fuel-efficient and advanced technology automobiles. ZAP is working to create an auto dealer package that will market automobiles from companies like OBVIO!. Schneider noted that ZAP plans to offer new advances in automotive technology, including high efficiency internal combustion and electrically driven vehicles.

About OBVIO!

OBVIO! Automotoveiculos S.P.E. Ltda. is a new developer and manufacturer of automobiles in Rio de Janeiro, Brazil. OBVIO! has assembled a network of suppliers to incorporate the latest advances in automotive engineering into a new generation of automobile that meets the challenges of today's urban driving environment and is in the process of setting up its manufacturing facility in Xerem at Duque de Caxias city, Rio de Janeiro. Under the direction of OBVIO!'s chief design partner, Anisio Campos, the premier car designer in Brasil and a former racing driver, OBVIO! cars will incorporate many state-of-the-art technologies in its materials and features for an urban car that is fun to drive, but meets consumer's growing preference for efficiency. For more information, visit http://www.obvio.ind.br.

About ZAP

ZAP, Zero Air Pollution(R), has been a leader in advanced transportation technologies and energy products since 1994, delivering more than 90,000 vehicles to 75 countries. ZAP is publicly owned with shares trading on the Archipelago Exchange (PCX) under the trading symbol ZP. For more information, visit http://www.zapworld.com.

Cautionary Statement

This press release contains forward-looking statements. Investors are cautioned that such forward-looking statements involve risks and uncertainties, including, without limitation, continued acceptance of the Company's products, increased levels of competition for the Company, new products and technological changes, the Company's dependence on third-party suppliers, intellectual property rights, and other risks detailed from time to time in the Company's periodic reports filed with the Securities and Exchange Commission.