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EPA Approves 60-MPG SMART Car, Clears Way for U.S. Sales by ZAP


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SAN FRANCISCO, Nov. 22, 2004 -- After five years on the market in Europe, the 60-MPG SMART car was granted a certificate of conformity by the U.S. Environmental Protection Agency, clearing the way for U.S. sales by automotive technology pioneer ZAP, the Company announced today.

The SMART car goes on display to the public for the first time at The San Francisco International Auto Show, open to consumers November 21-28 at The Moscone Center in downtown San Francisco. ZAP will be displaying its other vehicles, including its new WORLDCAR(TM), a battery-electric car recently certified by The State of California Air Resources Board. See ZAP's exhibit at booth numbers 1145 and 1150.

With sales goals of 15,000 vehicles per year, the 60-MPG SMART car catapults ZAP into the automotive industry at a time when U.S. gas prices are at record levels. The publicly owned Northern California Company made a name for itself over the past decade pioneering the market for electric cars, bikes and scooters. The SMART car enables ZAP to execute its new business plan of establishing a ZAP auto dealer network that caters to socially responsible car buyers with advanced automotive technologies, including fuel-efficient automobiles powered by gasoline, electric, hydrogen and other fuels.

In May, ZAP signed an exclusive distribution contract with SMART-Automobile LLC for the rights to sell the cars in the United States. ZAP and SMART-Automobile are preparing to launch marketing and distribution for the car with a near-term goal of 150 dealer outlets by second quarter of fiscal year 2005.

The SMART Car Americanized by ZAP is stylish, fun, parks in the space of a motorcycle, stands up to a Mercedes in crash-tests, and reportedly averages 60 MPG, making it one of the most efficient internal combustion cars on the market, rivaling even hybrid gas-electric cars. The SMART car has become a popular culture icon since its release in Europe in 1998 and ZAP believes Americans will snap up the SMART with gas prices in California approaching $3 per gallon.

Aside from the fuel-savings, officials with ZAP and SMART-Automobile believe the styling and design of the car will have the same appeal to U.S. consumers as cars like the popular Mini Cooper(R), although the SMART is smaller and more fuel-efficient. The two-passenger "micro-cars" are a product of European innovation, encompassing a number of "SMART" designs to create an economical car that requires less space and fuel. SMART designers chose to create a two-passenger coupe that provides ample room for two adult passengers. At eight feet in length, the car is short enough to back into a parallel parking spot; two can park bumper-to-bumper in a single parking space.

Other features and options of the SMART car include a 61-hp, 3-cylinder turbocharged engine, equipped with an advanced electronic stabilization program, or ESP, an anti-skid design using the engine torque in conjunction with the anti-lock braking system. A unique 6-speed automatic gear transmission with kickdown function allows the user to switch between "automatic" and "manual" gear shifting via a control program that changes gears in response to driving characteristics. SMART's design emphasizes safety, with a tridion safety cell, steel-reinforced construction, higher passenger elevation for enhanced visibility, and front and rear "crashbox" low-speed dent resistant panels. The SMART package is rounded out with additional sport features and options like dual airbags, power windows, power door locks and options like air-conditioning and convertible roof. The new SMART cars are available to ZAP dealers in select states. For dealer and sales information, visit http://www.zapworld.com/ or call +1-707-525-8658.

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

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.