Hurricane Katrina, Record Gas Prices Spark ZAP Electric Car Sales

SANTA ROSA, Calif.--Sept. 2, 2005--Transportation pioneer ZAP (PCX:ZP) announced today that sales for its electric cars have picked up recently due to concerns over record oil, gas prices.

Hurricane Katrina has been blamed for an abrupt spike in oil and gas prices with prices rising over $3 in many parts of the country. Media reports say that the recent hurricane has disrupted oil production along the Gulf Coast, halting business operations for a number of oil suppliers to the region. This morning's edition of USA Today reported that some gas stations have closed while others are charging more than $6 per gallon for gas. Consumers across the country are feeling the affects as well.

ZAP says it has sold four electric cars "sight unseen" over the Internet on Thursday and thousands of people have already joined a list of prospective electric car buyers.

"We have had thousands of people calling and emailing us in the past few months," said ZAP CEO Steve Schneider. "The economics of oil is becoming an issue for average consumers and when you look at the cost of plugging in versus pumping gas, it makes a lot of sense."

Gas cars use about 12 cents worth of fuel for every mile, whereas electric cars use only 3 cents worth. That means an electric car can travel four times as far as a gasoline car for the same money. Other ZAP vehicles, like its electric bicycles, use about a penny's worth of energy for every five miles and achieve an average fuel efficiency of more than 1,000 miles per gallon.

ZAP says that driving an electric car is different from conventional cars, an experience you have to try it to understand. Once people add an electric car to their family, he says that most people prefer to use the electric car over their other cars. ZAP cited a recent study of electric car use in California that shows when given the choice between an electric car and a conventional automobile, owners chose the electric 90 percent of the time for their trips. The cars can be plugged into any regular 110-volt outlet to be recharged.

Electric vehicles are available directly from ZAP and start as low as $300 for an electric bike or scooter and $5,000 for an electric car. Furthermore, ZAP has offered free shipping on its electric cars when purchased during the month of September. ZAP is also recruiting auto dealers who are interested in catering to fuel-efficient car buyers. For more information, go to www.zapworld.com or call ZAP Sales at (707) 525-8658.

About ZAP

ZAP, Zero Air Pollution(R), has been a leader in advanced transportation technologies since 1994, delivering over 90,000 vehicles to consumers in more than 75 countries. For more information, visit http://www.zapworld.com.

Cautionary Statement

This press release contains forward-looking statements. Investors are cautioned that such forward-looking statements involve risks and uncertainties, including, without limitation, continued acceptance of the Company's products, increased levels of competition for the Company, new products and technological changes, the Company's dependence on third-party suppliers, intellectual property rights, and other risks detailed from time to time in the Company's periodic reports filed with the Securities and Exchange Commission.