ZAP Sees 'Open Road' with Automakers Backing Off Electrics

SANTA ROSA, Calif., Aug. 18, 2003 -- Electric transportation pioneer ZAP (BULLETIN BOARD: ZAPZ) is ramping up to sell more battery electric cars as automakers appear to be shifting focus towards hydrogen fuel cells and hybrid gasoline-electric technologies.

This week General Motors, DaimlerChrysler, Isuzu Motors, and several auto dealers announced that they have dropped a lawsuit against a California clean-air program aimed at cutting emissions in the state. Changes to the plan recommended by state regulators will help automakers comply with the new regulations by selling vehicles other than just electric cars, the original intent of the California regulations.

According to ZAP CEO Steve Schneider: "From ZAP's perspective, sales for electric vehicles are rising and the demand for electric cars and other electric vehicles is growing. ZAP is one of the only public companies focused on marketing electric vehicle technologies and we see an opportunity. To borrow a phrase, while automakers see a roadblock with electric cars, all we see is open road."

According to a recent AP article, the California Air Resources Board (CARB) designed a program in the early 1990s to force automakers to sell non- polluting electric cars and trucks, termed zero-emissions vehicles by the industry. Last year, several automakers and dealers won an injunction in a U.S. District Court delaying the implementation of the mandate until 2005.

Earlier this year, CARB changed the mandate to give automakers credit for sales of fuel cell vehicles and hybrids, which have both gasoline and electric engines. Under the new rules, car makers will have to deliver at least 250 fuel cell cars -- which generally run on hydrogen -- or larger numbers of battery-powered vehicles by 2008. The target rises to 27,500 by 2014, according to an air resources board spokesman.

About ZAP

ZAP, which stands for Zero Air Pollution(R), 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. The company is recruiting auto dealers and other types of retailers around the world to join its distribution network. For more information on become a ZAP dealer, visit www.zapworld.com or contact ZAP Dealer Development at 707-525-8658.