ZAP Announces Orders of $4.98 Million for SMART Car

Receives Second $2 Million Purchase for Smart Americanized by ZAP

SANTA ROSA, Calif., Dec. 20, 2004; Automotive technology pioneer ZAP announced today it has received a second 100-unit wholesale purchase order for the SMART Car, bringing the total in wholesale fleet orders in hand to $4.98 million.

ZAP is in discussion with a number of government and corporate fleets as well as automotive wholesale dealers for purchase orders of 100 or more cars by December 31, 2004. ZAP unveiled the SMART Car to U.S. consumers in November at the San Francisco International Auto Show, announcing that the U.S. Environmental Protection Agency has issued a Letter of Conformity. This regulatory approval clears the way for ZAP to begin organizing U.S. marketing and distribution for the SMART Car. ZAP has an exclusive distribution contract with SMART-Automobile LLC for the rights to sell the cars in the United States with a near-term goal of 150 dealer outlets by second quarter of fiscal year 2005.

The SMARTCAR 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. The publicly owned Northern California Company made a name for itself over the past decade pioneering the market for electric cars, bikes and scooters.

SMART-Auto 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 world leader in cleaner transportation technologies since 1994, delivering its award-winning ZAP vehicles and energy products 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 technologies and vehicles, including cars, bicycles, scooters, motorbikes, underwater scooters and more. For more information, visit http://www.zapworld.com/ or call 707-525-8658. ZAP is not affiliated with, or authorized by, smart gmbh, the manufacturer of SMART automobiles, or the smartUSA division of Mercedes-Benz LLC, the exclusive authorized U.S. importer and distributor of those vehicles. ZAP purchases its vehicles from non-affiliated direct importer Smart-Auto LLC.