ZAP Signs $650,000 Financing Agreement with Daka

SEBASTOPOL, Calif., April 7 -- ZAP (BULLETIN BOARD: ZAPZ) announced today that Daka Development Ltd. has provided $650,000 in new financing to the Company. Under terms of the agreement, $325,000 will be converted to equity and $325,000 will be repaid under credit terms. The financing will be applied towards inventory purchases from Daka.

A Northern California electric transportation developer, ZAP markets a full-line of electric vehicles, including cars, motorbikes, scooters, bicycles, aquatic vehicles and more. In 2002, ZAP signed an agreement with Daka to design, manufacture and market new forms of advanced and alternative energy and transportation products.

ZAP and Daka are working together to market the SEASCOOTER(TM) which was introduced in the fourth quarter of fiscal 2002. ZAP believes demand for the SEASCOOTER is increasing and they are expanding their marketing program in anticipation of the spring and summer seasons. In February 2003, the company received a $250,000 order for the SEASCOOTER from a Mexican distributor.

The SEASCOOTER is a consumer version of the battery-powered dive vehicles used by undersea explorers and commercial divers. Innovations in design and construction make it one of the lightest and most affordable dive vehicles on the market. The SEASCOOTER is capable of pulling swimmers, snorkelers and scuba divers through water effortlessly and comfortably at speeds up to 2 mph, with a run time of up to an hour with the optional extended life battery. It enables snorkelers and divers to reach new depths faster, thus making it easier to explore coral reefs and other marine life. ZAP says the product appeals not only to divers, but resorts, pool owners and boat owners.

In June of 2002, Daka provided $500,000 loan in inventory financing to ZAP, and in September 2002 exercised its option to convert the entire amount of the note to common stock. Daka Development is a product development company founded to create, design, engineer, manufacture and market an array of consumer products for competitive global markets. One of the shareholders and board members of Daka Development is Sir Clive Sinclair, one of Britain's most famous inventors, credited with the invention of the calculator, digital watch and pocket TV as well as other innovative, energy efficient products.

About ZAP

Established in 1994, ZAP helped pioneer the market for electric bicycles, scooters and other short-range electric vehicles, delivering more than 80,000 units to customers around the world. Last year, the publicly owned company completed mergers with two automotive companies, and announced in January that it will enter the electric car market. For more information about ZAP, visit http://www.zapworld.com/ or call 800-251-4555.

Certain statements and information included in this press release constitute "forward-looking statements" within the meaning of the Federal Private Securities Litigation Reform Act of 1995. Such forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of the Company to be materially different from any future results, performance or achievements expressed or implied in such forward-looking statements. Additional discussion of factors that could cause the actual results to differ materially from management's projection, forecasts, estimates and expectations is contained in the Company's Form 10-K and other SEC filings.