ZAP Announces Brazil Certification and Signs Annual Sales Contract with Agra 8000

SANTA ROSA, CA -- Oct. 6, 2014: ZAP (ZAAP), an Electric Vehicle (EV) automotive company incorporated in California Bay Area, and its subsidiary Jonway Auto announced the receipt of Brazil type approval certification for its SUV and the signing of annual sales contract with its partner Agra 8000, a Brazil company headquartered in Rio de Janeiro on the shoreline of Barra da Tijuca. After several years of extensive work by the joint partners, Jonway Auto's SUVs have been calibrated to meet the E22 requirements with complete type approval and certification issued for Brazil and meeting all of the crash, safety as well as emissions requirements. The extensive work to achieve this recent successful certification in Brazil was done in collaboration with Agra 8000, and this opens up Brazil and potentially other South American markets that look to Brazil as the high benchmark for auto certification.

Agra 8000, a subsidiary of Action Brazil, is well financed by Itau Bank in Brazil with over US$80 million set aside to finance its network of dealerships established in Rio de Janeiro, Minas and Gerais. Agra 8000 has built a new warehouse in the port of Vitoria to provide service support and shipment staging. Agra 8000 is well established with multiple customer service and training centers in place to support its network of dealerships in the different cities.

The annual sales contract starts shipment in October this year with initial monthly shipment of 50 SUVs per month. This successful certification and partnership could potentially open up additional channels in South America for ZAP and Jonway's Electric Vehicles and New Energy Vehicle (CNG) products, as they share the same crash and safety tests. Brazil is one of the top auto markets in S. America with a high barrier to entry due to its tough type approval requirements. With this milestone certification of Jonway's SUVs and its strong partnership, ZAP now has the opportunity to expand quickly and utilize this established well financed strong dealership network in the Brazil which can potentially serve as the hub for supporting neighboring countries.