Business 2.0 Features ZAP Among Best Business Ideas in the World; ''Idea No. 31: Tap Into New Markets Created by Today's Sky-High Oil Prices''

SANTA ROSA, Calif.--Aug. 1, 2006--Business 2.0 magazine features automotive pioneer ZAP (NYSE Arca:ZP) in an article entitled the "The 31 Best Business Ideas in the World," for the idea of creating a line of fuel-efficient and renewable energy vehicles to tap into the market created by rising energy costs. The article is in the August issue, which is now available on newsstands and online at http://cnn.com/business2/.

A leader in advanced transportation technologies since 1994, ZAP was recognized for the Smart Car Americanized for ZAP, a fuel-efficient all-gas turbo car from Europe that the company is distributing in the US. ZAP also recently launched sales for a new electric car called the XEBRA and has announced a partnership with OBVIO ! of Brazil for the manufacture and distribution of cars using ethanol, electric and other technologies for the US market. ZAP has started a dealership network throughout the country for its advanced technology vehicles.

"We are extremely honored that Business 2.0, one of America's most prestigious new business magazines, has confirmed our business plan of establishing a portal and a brand for consumers looking for fuel-efficient vehicles," said Steven Schneider, ZAP CEO.

A publicly-owned company based in Northern California, ZAP is an automotive company that manufactures and distributes advanced technology vehicles that offer economic, environmental and sustainable benefits over conventional modes of transportation. For more information about ZAP vehicles, and to find out about dealership opportunities, visit http://www.zapworld.com or call 707-525-VOLT (8658).

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. The Smart Car Americanized by ZAP currently complies with regulatory requirements in all states except California and four other 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. 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.