ZAP Issues One Billion Dollar Purchase Order to DaimlerChrysler Group for Smart Cars

SANTA ROSA, Calif.--May 2, 20054, 2005--ZAP (OTCBB:ZAPZ), pioneering the next generation of advanced transportation and energy technologies, announced today that it placed a purchase order for $1 billion worth of Smart Cars with smart GmbH, a Company of the DaimlerChrysler Group.

ZAP reported that it has received over $1 billion in advance purchase orders for the Smart Car Americanized by ZAP from U.S. auto dealers, and continues to receive more as a result of its marketing efforts. ZAP says that its business model of creating an advanced transportation dealer network has been helped recently by rising gas prices and the demand for more fuel-efficient cars. ZAP has been evaluating a number of ways to expand its efforts to bring the Smart Car and other energy-efficient automobiles to the U.S. to fill this demand, including discussions involving cooperation with other automobile manufacturers.

Last week, ZAP delivered the first Smart Car Americanized by ZAP through its first authorized dealerships to a Nevada couple that had placed an order for the Smart Car over a year ago. ZAP recently announced that a model of the Smart ForTwo Coupe had received full regulatory approval from the federal government, clearing the way for sale in 45 U.S. states. Excluded are California and four other states that follow different emissions testing procedures, which are not yet completed. ZAP has ordered the cars from smart GmbH, a Company of the DaimlerChrysler Group, to be delivered in a fully U.S.-compliant condition.

ZAP CEO Steve Schneider said the $1 billion purchase order was placed in response to an inquiry from smart GmbH, a Company of the DaimlerChrysler Group, which was first made in March. Mr. Schneider has confirmed that ZAP has been in discussions with smart GmbH, a Company of DaimlerChrysler Group, which included a meeting in Stuttgart, Germany, with smart GmbH officers to explore the possibility of working together to fill U.S. demand for the Smart Car. ZAP placed the purchase order directly to the DaimlerChrysler Group in an effort to expedite delivery of U.S. compliant Smart Cars to consumers. ZAP is still waiting for confirmation that smart GmbH will fulfill the purchase order.

ZAP has not agreed to accept all Smart Car purchase orders at this time. 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 owns the technology developed by Smart-Automobile LLC to Americanize the popular European-made Smart Car for the U.S. marketplace. ZAP Americanizes the Smart Car to meet U.S. federal and state safety and emissions standards. 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. For more information, visit http://www.zapworld.com. For investor-specific information, visit http://www.trilogy-capital.com/tcp/zap. To read or download the Company's Investor Fact Sheet visit http://www.trilogy-capital.com/tcp/zap/factsheet.html.