ZAP Celebrates Breakout Year for Automotive Distribution at Annual Meeting, Revenues Up

SANTA ROSA, Calif.--June 19, 2006--Steve Schneider, Chief Executive Officer for automotive pioneer ZAP (NYSE Arca:ZP), discussed the transition in 2005 to automobile distribution at the annual meeting of shareholders and said that 2006 will be a year of implementation.

ZAP began shipping Smart Cars Americanized for ZAP recently and over 200 cars have been sold through May 2006. This has helped increase ZAP revenues to $5.7 million through May 31, 2006, more in five months of 2006 than all of 2005.

The Smart Car stars in the opening scene of The Da Vinci Code alongside Tom Hanks. The cameo role is featured today on the front page of the San Francisco Chronicle, the Bay Area's largest newspaper, reporting "celebrity cachet helps drive demand for eco-friendly automobiles." See the article "Take One Wee Car, Add Glitz... Zoom!" online now at http://www.sfgate.com/cgi-bin/article.cgi?f=/c/a/2006/ 06/19/MNG48JGFK31.DTL&feed=rss.news. (Due to its length, this URL may need to be copied/pasted into your Internet browser's address field. Remove the extra space if one exists.) A link is also available via ZAP's website on its page for the Smart Car.

Schneider noted that ZAP's XEBRA electric vehicle has a backlog of over half a million dollars and that the company is beginning to ship models. He added that progress continues on a new ethanol-powered sports car from Brazil called OBVIO !(TM) which ZAP plans to distribute in North America by next year.

ZAP President Max Scheder-Bieschin, who joined ZAP in late 2005, was introduced for the first time to ZAP stakeholders. He gave an update on ZAP's operational goals for expanding distribution, introducing new technologies, enhancing current product lines while expanding ZAP's niche in the marketplace. He also talked about ZAP's position in the emerging market for advanced vehicle technologies, noting that ZAP has become a magnet for new technologies from all over the world.

Mr. Scheder-Bieschin highlighted developments with ZAP's new personal transportation vehicles, including three new, improved designs for the ZAPPY3 electric scooter, as well as two new off-road electric vehicles. Several of the new cars and vehicles were showcased at the annual meeting, including ZAP's new iZAP Portable Energy, advanced battery storage and charging systems for mobile electronics.

About ZAP

ZAP has been a leader in advanced transportation technologies since 1994, delivering over 90,000 vehicles to consumers in more than 75 countries. ZAP is at the forefront of fuel-efficient transportation with new technologies including energy efficient gas systems, hydrogen, electric, fuel cell, ethanol, hybrid and other innovative power systems. 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. For more information, visit http://www.zapworld.com.

Forward Looking Statements

Statements in this press release that relate to future plans or projected results of ZAP are 'forward-looking statements' within the meaning of Section 27A of the Securities Act of 1933, as amended by the Private Securities Litigation Reform Act of 1995 (the "PSLRA"), and Section 21E of the Securities Exchange Act of 1934, as amended by the PSLRA, and all such statements fall under the 'safe harbor' provisions of the PSLRA. ZAP's actual results may vary materially from those described in any 'forward-looking statement' due to, among other possible reasons, the continued acceptance of ZAP's products, increased levels of competition, new products and technological changes, ZAP's dependence on third-party suppliers, intellectual property rights, and the realization of any of the other risks described in ZAP's Annual Report on Form 10-KSB, or in any of ZAP's other filings with the Securities and Exchange Commission. Readers of this press release are cautioned not to put undue reliance on forward looking statements.