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Smart-Automobile LLC Announces Technology License for Smart Car Americanized by ZAP, Final U.S. Clearance for Smart Cars In-Hand

LONG BEACH, Calif., March 15 -- Smart-Automobile LLC announced today its proprietary technology has been successfully applied in the modification of the Smart For Two Coupe / Convertible for direct importation to the United States.

Smart-Automobile is part of a venture to independently bring the fuel- efficient Smart Car to the U.S., where the popular car has not been available since its introduction in 1998. Smart-Automobile has contracted for the exclusive distribution of the Smart Cars to publicly owned automotive company ZAP of Santa Rosa, California, to be marketed to consumers through a ZAP authorized dealer network. Registered import company G&K Automotive Conversions of Santa Ana, California, has been contracted for the conversion of the cars to meet U.S. standards.

Smart-Automobile President Thomas Heidemann announced that he is pleased to reach this milestone, having invested significant capital and several years in bringing the fuel-efficient car from Europe to the United States where gas prices are reaching record levels.

"There has been a great deal of excitement about the Smart Car coming to the United States, and I want to congratulate our partners and future customers for their hard work and patience in reaching this point," said Heidemann.

"With such a unique new car in the U.S. market and so much demand, we want to reassure the public that we strive for excellence in providing the highest level of service and support," said the German-born entrepreneur. "Such demand has concerned the government with the possibility of illegal Smart Cars entering the country, and we want to assure everyone that Smart-Automobile will do everything in its power to make sure the cars are sold in a proper manner through an authorized dealer network, with certified technical training and legally imported cars."

Under its contract, Smart-Automobile is supporting the venture in hosting exclusive training programs for ZAP Authorized Dealers as well as the licensing of the proprietary Smart diagnostic systems used in maintaining the cars and ensuring they operate to U.S. standards of safety and emissions. Smart-Automobile owns the OBD II technology as well as the tool molds, software and factory inventory housed at G&K.

Heidemann added: "I want to clarify this business venture with the public, because it has been quite unique in the today's auto industry. We have, independently of the manufacturer, obtained full U.S. safety and emissions compliance with the Smart Cars. Usually imported cars are brought into the U.S. through exemptions. In this situation, ZAP owns the exclusive distribution rights regarding our contracts to sell the Smart Car converted through SA and G&K in the USA."

Heidemann said that they will continue to obtain non-compliant cars through wholesalers, brokers and other entities worldwide to supply vehicles for the U.S. market. Smart-Automobile will only service cars with VIN numbers provided through ZAP and will give notice to EPA and DOT on every car it delivers. These VIN numbers will be kept on file by ZAP Authorized Dealers to ensure that all Smart Cars driven in the country meet government regulations.