American Orders for High-Efficiency SMARTCAR Gas-Powered Micro-coupe Rise as World Oil Prices Skyrocket

SANTA ROSA, Calif.--April 14, 2005--ZAP, pioneering the next generation of advanced transportation and energy technologies, has announced that advance purchase orders from U.S. auto dealers for the SMARTCAR has crossed the half-billion-dollar mark, indicating continued strong demand by American drivers for the fuel-efficient German-made microcoupe.

ZAP has recently reported increasing volumes of dealer purchase orders for the Smartcar, a Mercedes-built vehicle that's one of the most efficient gas-powered cars manufactured. The Smartcar has already proved popular among drivers in countries throughout Europe. Earlier this month, on April 5, the Company announced receipt of a total of $431 million in U.S. purchase orders. ZAP owns the technology to Americanize the Smartcar to meet U.S. emissions and safety standards, and holds all licensing rights from non-affiliated Smart-Automobile LLC to conduct the Smartcar Americanization.

"Breaking through the half-billion-dollar barrier further underscores just how eagerly American consumers want to save money on fuel expenses while driving a car that is comfortable, easy to park, safe and exciting," said Steve Schneider, CEO of ZAP. "While this country has enjoyed relatively low gasoline prices over the decades, it is clear that continued rising fuel costs are profoundly affecting millions of Americans who are conscious of the need to control their transportation budgets. In addition, many consumers are motivated by a sense of environmental responsibility that also pushes them toward the most fuel-efficient vehicles."

ZAP is currently in discussions with a number of potential partners to meet the strong American demand for the Smart Car. Delivery of the Smart Cars represented by the current level of purchase orders is conditional upon ZAP's execution of strategic relationships with major automotive manufacturing partners that will enable it to support the full sales pipeline. To build sufficient capacity to supply the full U.S. demand, the Company has been in discussions with a number of major automotive industry leaders in Europe and Asia that have direct experience in the manufacture and sales of high-efficiency vehicles. Once ZAP finalizes the required strategic partnerships and has approval from all government agencies, it will determine its delivery schedule for Smart cars in the United States.

About ZAP

ZAP, Zero Air Pollution(R), has been a leader in advanced transportation technologies and energy products since 1994. ZAP serves the multibillion-dollar markets for next-generation transportation and power products through three divisions: ZAP Automotive, ZAP Personal Transportation and ZAP Energy. The Company has delivered more than 90,000 fuel-efficient and pollution-free vehicles powered by gasoline, electric, hydrogen and other fuels to customers in more than 75 countries around the world.

ZAP owns the technology developed by Smart-Automobile LLC to Americanize the popular European-made Smart Car, a high-efficiency gas vehicle, for the U.S. marketplace. ZAP Americanizes the Smart Car to meet U.S. federal and state safety and emissions standards. The U.S. Environmental Protection Agency and the Department of Transportation have approved a Smart Car model Americanized by ZAP for domestic use in 45 U.S. states. 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. The Smart Car is manufactured by global automotive company DaimlerChrysler. ZAP purchases its vehicles from non-affiliated direct importer Smart-Automobile LLC.

The Company's all-electric vehicles include the ZAP Intimidator L.U.V. and ZAP Worldcar neighborhood and urban electric cars, ZAPPY(R) Scooters, Mobility Scooters, Bikes and All Terrain Vehicles (ATV). These products offer convenient, dependable and fun transportation that's heavy duty, powerful and noise free. The ZAP Portable Energy division has developed a next-generation, multi-use battery for electronic products that delivers up to four times the power of typical batteries to charge or power a variety of devices, including cell phones, digital cameras, DVD and MP3 players, camcorders, and laptops.