ZAP to Take Daimler Smart Car Lawsuit to California Supreme Court

LOS ANGELES--Electric car maker ZAP (OTCBB:ZAAP) filed a lawsuit against DaimlerChrysler, Smart Car and various officials on October 28, 2005, alleging severe misconduct attempting to destroy ZAP's business model to bring the affordable and environmentally friendly smart fortwo to the US public.

Following a procedural ruling by the trail court and the court of appeals that the defendants were not subject to the jurisdiction of the California courts, ZAP has announced its intentions to bring the matter to the California Supreme Court for resolution.

"Justice requires that the Company and individuals who set out to interfere with ZAP's business relationships and to disrupt and to steal ZAP's customer base should be held accountable for their actions in California Court," said ZAP CEO Steve Schneider.

Lawyers for ZAP expect the decision by the California Supreme Court within approximately three months.

ZAP began marketing the Smart Car in the United States after Smart USA decided there was no market in the US and closed its operations. Even Smart USA's former president Dave Schembri sent a resume to ZAP after Smart ceased operations, saying he believed there was a market for the car in the US.

About ZAP

ZAP has been a leader in advanced transportation technologies since 1994, delivering over 100,000 vehicles to consumers in more than 75 countries. 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 has a joint venture called Detroit Electric to manufacture electric and hybrid vehicles with Youngman Automotive Group, one of China's leading manufacturers of buses and trucks. Detroit Electric is developing a freeway capable electric vehicle called the ZAP Alias in collaboration with Lotus Engineering. ZAP is also developing a new generation of vehicles using advanced nanotech batteries with Advanced Battery Technologies. The Company recently announced a strategic partnership with Dubai-based Al Yousuf Group to expand its international vehicle distribution. ZAP also makes an innovative, new portable energy technology that manages power for mobile electronics from cell phones to laptops. For product, dealer and investor information, visit http://www.zapworld.com.