ZAP Acquires Electric Transportation Company

SANTA ROSA, Calif., April 20 -- Electric transportation pioneer ZAP (BULLETIN BOARD: ZAPZ) announced today that it has signed an agreement to acquire The Electric Transportation Company, LLC (ETC) of Santa Barbara, California.

Similar to ZAP, ETC was founded in the early 1990s to design, develop and market an electric powered bicycle. ETC continued developing advanced drivetrains for electric propulsion technology, however the global popularity of the small electric vehicles and increasing competition prompted talks between ZAP and ETC over the past few months about joining forces. Over a thousand ETC drivetrains are now in ZAP's finished goods warehouse in Sebastopol, California available for sale and ZAP is contacting ETC's dealer and customer base to facilitate the transition of ETC products to ZAP.

ZAP, which entered the market for electric cars in 2002, has been pursuing opportunities over the past several years to partner with all companies involved in cleaner transportation technologies around the world. The publicly owned company has been involved in seven mergers and acquisitions with companies involved in electric scooters, motorbikes, electric cars and other advanced technology vehicles.

Specific terms of ZAP's agreement to purchase ETC have not been disclosed but include ZAP stock and warrants in exchange for all assets of ETC, including designs, blueprints, test reports, manufacturing equipment, product and parts inventory, and intellectual property. The acquisition includes ETC's customer database, which includes hundreds of dealers. ZAP has also transferred all ETC vehicle components from its manufacturing operations to ZAP's raw materials warehouse for final assembly.

ETC invested millions of dollars in intellectual property development for advanced electric drivetrain technology, with patents filed in the U.S., Canada, European, United Kingdom, Taiwan, China and Japan. The acquisition also includes numerous U.S. and international trademarks, registration marks, and slogans, including designs and trademarks for "THE FUTURE IS ELECTRIC," "ETC," and "ETC EXPRESS." The acquisition also includes the ETC website and domain name.

About ZAP

ZAP (Zero Air Pollution) has been a leader in electric transportation since 1994, delivering more than 85,000 electric vehicles to customers in more than 60 countries. A public company, ZAP is traded on the Over-the-Counter stock exchange under the symbol ZAPZ. The company offers a variety of advanced technology vehicles, including electric cars, bicycles, scooters, motorbikes, underwater scooters and more. For more information, visit http://www.zapworld.com/ or call +1-707-525-8658.