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ZAP Sees Revenues Beat Forecast

21 December 2000

ZAP Sees Revenues Beat Forecast

    SEBASTOPOL, Calif.--Dec. 21, 2000--ZAPWORLD.COM , a recognized leader in the U.S. electric bike and scooter market, said on Thursday that revenues for 2000 have surpassed earlier projections based on record sales for electric scooters.
    In May, a report from Value & Growth Research projected ZAP's 2000 sales at $9-$10 million. Record sales for the third quarter and over the holidays have helped push ZAP's revenues above these projections. Sales of $8.1 million were reported through the third quarter ended September 30, 2000. Sales for the month of November are up 152 percent to $1.65 million from $654,000 a year earlier. ZAP CEO Gary Starr now projects sales to surpass $11 million for 2000, up from $6.4 million last year.
    "We knew the electric scooter market was going to take off, but the consumer response is surpassing even our most optimistic projections," said Starr. "With the introduction of the ZAPPY Jr. model for smaller children and other new products coming out in early 2001, we expect to further capitalize on the growing demand for light electric transportation."
    While many retailers across the country are disappointed with holiday sales overall, ZAPPY retailers are reporting a boom. Dennis and Lucy Mentelos in August turned part of their nursery in Cotati, Calif. into a ZAP bike and scooter store. Over the holidays they also opened an outlet at a nearby shopping mall. Dennis Mentelos says the ZAP products have doubled their sales in less than six months.
    "The response is unbelievable. At our ZAP Holiday Outlet, sometimes there are more people in line to test ride the ZAPPYs than to sit on Santa's lap," said Mentelos.

    Forward-looking statements in this release are made pursuant to the "safe harbor" provisions of the Private Securities Litigation Reform Act of 1995. 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 upon 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.