ZAP Launches POWERBIKE Production in Taiwan

    SEBASTOPOL, Calif.--May 23, 2001--Electric vehicle pioneer ZAPWORLD.COM announced today that it has initiated production of its new model POWERBIKE(R) electric bicycle with Taiwanese contract manufacturers.
    The new model POWERBIKE electric bicycle from ZAP integrates a new propulsion system design that ZAP expects to be one of the lowest-cost electric bicycles on the market, specifically designed and priced for worldwide mass retail distribution.
    "ZAP helped pioneer the U.S. electric bike industry in 1994 by building electric bicycle systems that were affordable," said ZAP CEO Gary Starr. "We believe the timing is right for a new design available in mass production at an even lower price. With increasing consumer awareness about the category as a whole, the overall energy market, and the rising price of gasoline, we believe retailers will be excited to showcase a low-cost, original equipment manufactured ZAP bicycle."
    ZAP's new design for the POWERBIKE includes a lightweight propulsion system with a direct drive belt transmission to combine with user input for a top-speed of 16 MPH and a range of up to 12 miles. According to ZAP, the POWERBIKE was developed using a new approach of utilizing "best-in-class" companies to jointly develop the product under ZAP's engineering management. Production is managed through ZAP's Taiwan engineering offices in conjunction with ZAP's Taiwan-based contract manufacturers.
    "Using this approach, ZAP was able to go from concept to regular production of the POWERBIKE in under six months," said Starr. "This included reliability and safety testing to insure the product meets or exceeds industry standards while lowering ZAP's operating and overhead costs in bringing the product to market."
    ZAPWORLD.COM (ZAP) also makes electric scooters, mopeds, and motorbikes. The Company is publicly owned with common shares listed on the NASDAQ Small Cap Stock Exchange under the trading symbol "ZAPP." For more information or to order a ZAP bicycle, go to http://www.zapworld.com or call 800/251-4555.

    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.