ZAP Takes Possession of First Smart Car Shipment

SANTA ROSA, Calif., June 28 -- Advanced technology vehicle company ZAP (BULLETIN BOARD: ZAPZ) announced today it has purchased its first shipment of 60-MPG Smart cars.

Already on sale in 30 countries except the United States, the gas-powered Smart car is starting to get more attention in America as drivers search for ways to save money on record gas prices. Reports indicate the Smart car is rated at over 60 miles per gallon on the freeway, rivaling the fuel efficiency of hybrid cars.

In May, ZAP signed a $10 Million purchase agreement with SMART-Automobile LLC to be the exclusive distributor and licensed manufacturer in the United States for the SMART cars. The plan calls for ZAP to distribute 15,000 units annually by 2005 as part of its automotive division specializing in advanced transportation technologies, including more fuel-efficient automobiles powered by gasoline, electric and other fuels.

Smart-Automobiles LLC is an independent, privately-held company that oversees the direct importation and modification of automobiles to meet U.S. standards.

ZAP now has ownership of the first 94 Smart cars in a facility in Southern California where they are being upgraded to meet U.S. standards. The cars are the first available in the United States that have been crashed tested according to Department of Transportation safety standards.

ZAP says they have been receiving thousands of emails and phone calls from people around the world interested in buying and selling the Smart car. Over 1,500 people have visited its website www.zapworld.com to pick their favorite colors and register to purchase the cars.

About ZAP

ZAP has been a leader in clean transportation technologies since 1994, delivering more than 85,000 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.

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.