ZAP Grants Trademark License to Battery Manufacturer in China

SANTA ROSA, Calif., Oct. 26, 2004 -- Advanced automotive technology company ZAP (BULLETIN BOARD: ZAPZ) announced today that it has signed a trademark licensing agreement with Zibo Enterprises Co. Ltd. of The People's Republic of China.

Under the terms of the agreement, ZAP grants Zibo Enterprises the use of ZAP's trademarks in exchange for royalties on the global distribution of ZAP Portable Energy(TM) and future products co-developed by ZAP and Zibo Enterprises. Under the agreement, ZAP grants licensing for the trademarks ZAP(R), ZAP!(R) and Zapworld.com(R).

"ZAP is becoming one of the most recognized names in the emerging advanced automotive and energy markets," said ZAP CEO Steve Schneider. "The agreement today with Zibo Enterprises gives ZAP even greater exposure as well as the opportunity to create brand awareness for ZAP in China, which we see as the world's largest emerging consumer market."

Earlier this month, ZAP announced that it had invested in Zibo Enterprises to assist in expanding manufacturing operations for ZAP Portable Energy as well as future products utilizing ZAP and Zibo's advanced battery technologies. ZAP has signed a distribution agreement for ZAP Portable Energy and says these battery developments are the culmination of years working to develop larger format battery technologies for automotive applications. Mobile electronics are pushing the technology envelope for innovations in advanced batteries and ZAP CEO Steve Schneider says that this technology in larger formats can power electric cars on a level comparable to today's internal combustion automobiles.

ZAP Portable Energy (PE) is an instant backup for your battery-powered electronics, useful to extend the battery life or as an emergency power source for people on the go. The lithium-ion battery system can be recharged up to 1000 times and has up to four times the power as other batteries available. ZAP PE uses a smart microprocessor control system that can power a variety of mobile electronic devices, including handheld PCs, digital cameras, cellular phones, MP3, DVD, compact disc players or equivalent, low-voltage energy devices. It has the versatility to charge DC electronics from 7.0 to 11.0 volts through its DC port and 4.0 to 6.0 volt electronics through its USB port. ZAP Portable Energy is now available for immediate delivery.

About ZAP

ZAP has been a world leader in cleaner transportation technologies since 1994, celebrating its tenth year in business. The Company has delivered 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 cars, bicycles, scooters, motorbikes, underwater scooters and more. For more information, visit http://www.zapworld.com/ or call 707-525-8658.