ZAP Electric Car Maker Signs Agreement with Valence Technology to Distribute 10-Hour Laptop Battery

SANTA ROSA, Calif., July 1 -- Electric transportation developer ZAP (BULLETIN BOARD: ZAPZ) announced today that it has signed an agreement with Valence Technology Inc. , a leader in the development and commercialization of Saphion(TM) technology and Lithium-ion polymer rechargeable batteries, to distribute the N-Charge(TM) Power System that provides up to 10 hours of power for portable computers.

The N-Charge Power System utilizes Valence's new Saphion(TM) Lithium-ion polymer battery technology. In the past, lithium batteries have been used in small-scale applications, like cell-phones and small-scale electronic devices. However, ZAP says the new Saphion(TM) Lithium-ion technology opens the door to larger-scale uses of Lithium-ion based batteries. ZAP will be offering the new batteries to its customers as well as through its advanced transportation and technology distributors.

In January 2003, ZAP announced testing of a new lithium-based battery that shows promise in quadrupling the range of electric vehicles. ZAP specializes in the marketing of a full-line of electric vehicles (EVs), including cars, scooters, bicycles, dive scooters and more. ZAP hopes to incorporate new battery technology into its new vehicles when it becomes available.

About Valence Technology, Inc.

Valence is a leader in the development and commercialization of Saphion(TM) technology and Lithium-ion polymer rechargeable batteries. Valence holds an extensive, worldwide portfolio of issued and pending patents relating to its Saphion(TM) technology and Lithium-ion polymer rechargeable batteries. The company has facilities in Austin, Texas, Henderson, Nevada and Mallusk, Northern Ireland. Valence is traded on the NASDAQ SmallCap Market under the symbol VLNC and can be found on the Internet at www.valence.com.

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 as mainstream transportation around the world. ZAP has delivered more than 80,000 EVs to commuters and recreational users 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.

Forward-Looking Statement

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