Electric Transport Co. ZAP Expands Into South America

SEBASTOPOL, Calif., April 16 -- Electric transportation developer ZAP (BULLETIN BOARD: ZAPZ) today announced that it has finalized plans to manufacture and market ZAP products throughout South America, a move that will help lower its manufacturing costs while expanding its global marketing strategy.

ZAP announced it has completed the acquisition of ZAP Latin America, a distribution partner established five years ago to research the market for ZAP vehicles in South America. The company currently operates two retail locations and is creating a manufacturing operation to build ZAPPY electric scooters as well as the company's line of patented ZAP Power System bicycle motors kits. A sample order has been received from Uruguay and first shipments are expected in May.

ZAP says that it will also use its resources in South America to help lower its manufacturing costs and parts production for future vehicle developments. The facilities will also conduct research and development on new products.

According to ZAP officials, the current economic climate in South America has opened an opportunity to invest in the region. Automobiles are seen as a luxury and 80 percent of the population use mass transit, bicycles, scooters or other more affordable means of transportation. ZAP would also benefit from tax incentives provided under the Mercosur trade alliance between Argentina, Brazil, Chile, Paraguay and Uruguay.

"There are many scooters in South America, but people want the ZAPPY -- it is the icon of the industry," says ZAP Director of International Marketing Fernando Cancela. "In addition, because of the trade incentives under Mercosur, ZAP wants to use this as a point of distribution for export to other countries. This will benefit our distribution partners around the world and we invite entrepreneurs to join our efforts in bringing ZAPs to their communities."

About ZAP

A publicly owned company, ZAP stands for Zero Air Pollution(R). The company unveiled a new line of electric cars in January 2003 and is working to establish worldwide distribution for a full-line of electric transportation. To see ZAP's full-line of electric vehicles, visit 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.