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ZAP Reports Third Quarter 2008 Results

• SEE ALSO: EV-Motoring.Com
• SEE ALSO: Plug-in 2008 Exclusive Coverage
• SEE ALSO: Plug-in Buyers Guide
• SEE ALSO: 350 Electric Vehicle Stories and Video

• SEE ALSO: ALL ZAP ARTICLES

SANTA ROSA, Calif. November 17, 2008: Electric transportation pioneer ZAP (OTCBB:ZAAP) announced today its financial results for the third quarter ending September 30, 2008.

The company announced that increased demand for alternative transportation has resulted in record Advanced Technology Vehicle (electric vehicles) segment revenue in the quarter ended September 30, 2008 of $2.2 million, up 180% from Sept, 2007 quarter revenue of $0.8 million.

“We are pleased to report that electric vehicle sales accelerated in the third quarter as we increased our manufacturing capabilities and the recent $10 million working capital credit line accelerated production and assembly operations,” said ZAP CEO Steven Schneider. “Although economic conditions have become more challenging for conventional auto dealers, we have had success on the dealer development front as we continue to expand our presence nationwide.”

GAAP Financial Results

The company reported revenue of $3.1 million for the third quarter of 2008, compared to $2 million in the third quarter, 2007, an increase of 52%.

The company reported a net loss of $2.5 million for the third quarter of 2008, a $1.2 million improvement to the loss of $3.7 million reported in the third quarter, 2007.

On a fully diluted basis, earnings per share in the third quarter, 2008 was a loss of $0.04, versus a loss of $0.08 in the third quarter, 2007.

The company ended the third quarter, 2008 with $1 million in cash and equivalents and 59.4 million shares outstanding.

Third Quarter Highlights

• ZAP shipped 240 Xebra vehicles in the third quarter ended September 30, 2008, as compared to 80 in the September quarter 2007, for an increase of 160 vehicles, or 200% growth. The company shipped 130 vehicles in the second quarter ended June 30, 2008 compared to 80 vehicles in the June quarter, 2007, for an increase of 50 vehicles, or 62% growth.
• On August 5, 2008 the Al Yousuf Group, a Dubai-based conglomerate and investor, provided a $10 million financing arrangement to provide working capital to ZAP and help meet the growing demand for ZAP electric vehicles.

Segment Results

The following discussion summarizes segment results for the company’s three reportable business units.

ZAP reported $2.2 million in Advanced Technology Vehicle (electric vehicle) revenue, up 180% from the $0.8 million in revenue reported in the third quarter, 2007. Net income for this segment was $0.1 million, down $0.1 million from the $0.2 million reported in the third quarter, 2007.

ZAP reported $0.53 million in Car Outlet revenue, up 48% from the $0.4 million in revenue reported in the third quarter, 2007. Net income for this segment was $0.04 million, up $0.1 million from the $0.2 million reported in the third quarter, 2007.

ZAP reported $0.4 million in Electric consumer products revenue, down 41% from the $0.9 million in revenue reported in the third quarter, 2007. Net losses for this segment were a loss of $2.6 million, up $1.3 million from the loss of $3.9 million reported in the third quarter, 2007.