ZAP Reports Financial Results for First Quarter 2003

SANTA ROSA, Calif., May 15, 2003 -- Electric vehicle pioneer ZAP (BULLETIN BOARD: ZAPZ) today announced its financial results for the quarter ended March 31, 2003. Company officials noted that sales were up for the quarter, while losses were down.

Net sales for the quarter ended March 31, 2003 were $1.5 million, compared to $420,000 in the prior year, an increase of $1,080,000 or 257 percent. ZAP's auto dealership subsidiary RAP Group posted sales that accounted for $1.1 million. ZAP's consolidated net loss decreased to $440,000 for the quarter, from $560,000 for the prior year, a decrease of $120,000 or 21 percent. The total consolidated assets also increased to $7.8 million, from $3.3 million in 2002.

ZAP has been working to reduce overall manufacturing and operational expenses as it shifts its focus to a marketing and distribution company. The Company mission is to establish a ZAP(R) brand retail marketplace for all forms of electric vehicles through a worldwide distribution network and via its website http://www.zapworld.com/ . These efforts so far in 2003 include:

  -- The Company signed an exclusive distribution agreement with an
     automotive business in Spain for ZAP's full-line of electric vehicles.
  -- The Company received a $250,000 order from a distributor in Mexico for
     its new SEASCOOTER(TM).
  -- The Company purchased a three-story office building in downtown
     Santa Rosa, California in essentially a cashless transaction that
     includes stock, convertible debt and warrants. The facility is the new
     corporate headquarters of ZAP and includes a ZAP store. The Company
     moved from its Sebastopol, California location in April of 2003.
  -- ZAP signed a $650,000 financing agreement with Daka Development for
     inventory purchases; the terms are 50% Common stock and 50% in cash.
     Daka had previously provided the Company with $500,000 of inventory
     financing last year, which was also converted to equity.
  -- ZAP subsidiary Voltage Vehicles signed an exclusive agreement with a
     European-based group of companies involved in the design and
     manufacturing of electric automobiles. The group started production on
     several different types of light electric utility vehicles for urban
     transportation and commercial use, including a 25 MPH neighborhood
     electric car that is now available through ZAP.
  -- ZAP L.U.V.(TM) (Light Utility Vehicle) is a new kind of automobile
     called a Neighborhood Electric Vehicle, a new category of automobile
     created for inner-city transportation, planned communities, commercial
     zones and tourist areas. The vehicle travels up to 25 MPH, has room for
     two, and plugs into any normal household electric outlet. The L.U.V.
     was selected as a finalist for Tech-TV's "Best of Show" at the annual
     Consumer Electronic Show held in Las Vegas in January 2003. ZAP is
     working to launch a ZAP "L.U.V.-Line" of electric automobiles, which
     would include freeway-capable vehicles as well as vans, pickups and
     commercial vehicles.
  -- The Company unveiled a new lithium-ion battery with the potential to
     increase the range of electric cars from 60 miles with conventional
     battery to 240 miles per charge. ZAP believes these batteries could set
     a new standard for the industry. While many experts point to hydrogen
     cells as a clean way to power automobiles, the technology requires the
     creation of an infrastructure, while batteries can be recharged by
     plugging into any household electrical outlet.

  About ZAP

ZAP, which stands for Zero Air Pollution(R), has been a world leader in electric transportation since 1994, helping to spark the emergence of electric bicycles and scooters into the consumer marketplace. ZAP has delivered more than 80,000 electric vehicles to customers in more than 60 countries. ZAP is traded on the Over-the-Counter Bulletin Board under the symbol ZAPZ. To purchase a ZAP vehicle, visit http://www.zapworld.com/ , or call 1-800-251-4555.