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ZAP Announces $3 Million in New Capital At June 24 Shareholders Meeting

27 June 2000

ZAP Announces $3 Million in New Capital At June 24 Shareholders Meeting

    SEBASTOPOL, Calif. - At its annual shareholders meeting on Saturday, June 24, ZAPWORLD.COM detailed the basis for its growth plan over the next five years and announced $3 million in new preferred stock financing.

    ZAPWORLD.COM's newly appointed president John Dabels outlined the company's growth plan for the future, which would combine a strategy of distribution and acquisition while focusing on a program of "Five P's," which include Production, Product, (Market) Penetration, Personnel, and Profitability.

    "The five P's provide the foundation to immediately begin the transformation of ZAP into a light electric transportation company with the same standards of measurement as the auto industry," said Dabels, who spent 25 years working for General Motors.

    During the meeting, ZAP explained that the $3 million proceeds of the preferred stock sale are being held in escrow pending the filing of pertinent documents with the Secretary of State for the State of California. The shareholders voted to approve the new preferred stock and to accept the terms of the announced preferred stock sale, including granting options to the investor clients of investment banker Union Atlantic. If all options are exercised, the company could receive up to $12 million of capital, depending on the trading price of the company's stock at the time of exercise. Such an infusion of capital would result in the new investors owning slightly more than 20 percent of the company's equity; again, depending on the price of the company's stock.

    Other highlights of the meeting included a presentation from representatives of recently acquired Aquatic Propulsion Technologies (APT), makers of an electric sea scooter. After the meeting, ZAP conducted tours of its manufacturing facility in Sebastopol, where the company said that, due to increasing demand, it had increased production for its ZAPPYs from 50 to 125 per day.

    ZAP is one of the world's leading companies in the light electric vehicle industry, emphasizing vehicles such as scooters, bikes and other personal electric vehicles. It has launched an aggressive acquisition program in order to continue its leadership role in this industry.