Smart Car Americanized by ZAP Debuts at National Automobile Dealers Association Expo, Jan. 29-Feb. 1 in New Orleans

NEW ORLEANS, Jan. 26, 2005 -- Automotive technology pioneer ZAP is introducing the Smart Car to America's top auto dealers at NADA 2005, January 29 through February 1, 2005 in New Orleans.

According to the National Automobile Dealers Association, its members comprise approximately 20,000 franchised new car and truck dealers holding nearly 43,000 separate franchises, domestic and international. NADA's dealer base represents more than $699 billion in annual sales revenues. The annual convention and exposition held this year at the Ernest N. Morial Convention Center includes 49 workshops for dealers and more than 500 exhibiting automotive companies.

NADA 2005 will be ZAP's first public appearance geared for new car dealers of the unique, high-efficiency Smart Car. This is ZAP's first foray into the market for gas-powered automobiles, looking to capitalize on the worldwide popularity of the Smart micro-car from Europe. ZAP says the fuel-efficiency and the style of the Smart Car have become legendary here in the U.S. as travelers abroad have brought back stories about falling in love with the car in Europe. Nearly 9000 individuals have registered their purchase interest in the cars and, based on dealer interest to date, ZAP expects dealers will be eager for its business plan to establish a dealer network for fuel-efficient and advanced automotive technologies. ZAP is working on finalizing its marketing, distribution and service program for the car, including working with its new dealers to buy 100-unit blocks of the car to speed up supply.

This week ZAP announced that it has began the process to 'Americanize' the first Smart Cars, a series of modifications for the car to meet U.S. DOT and EPA standards. The cars are being modified at a facility in California and ZAP expects the first of these cars to be available for test ride soon.

The Smart Car accelerates ZAP's Business Plan to manufacture and distribute automobiles utilizing advanced fuel technologies. ZAP recently announced a joint venture in China that is near completion on its first manufacturing facility that will work in the development of its advanced batteries and ZAP CAR(R) brand automobiles powered by a variety of advanced fuels, including cars that run on gasoline, electricity, hydrogen and other technologies. Over time ZAP plans introduce more cars to its dealer network to sell alongside the Smart. ZAP is also a manufacturer and distributor of personal transportation vehicles, including scooters, bicycles and other motorized vehicles.

About ZAP

ZAP has been a world leader in advanced 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.