ZAP Reports Second Quarter Financial Results

15 August 2000

ZAP Reports Second Quarter Financial Results

    SEBASTOPOL, Calif. - Electric vehicle maker ZAPWORLD.COM Reported its financial results for the second quarter of fiscal 2000.

    Total revenues for the quarter ended June 30, 2000, were $2,283,000 compared to $1,513,000 in the prior year, an increase of $770,000 or 51%. Net loss for the same period was $477,000, or $0.09 per share, compared to a net profit of $65,000 or $0.02 per share in 1999.

    "The recent results show our plans to dominate the personal electric vehicle industry market are beginning to gain momentum," said ZAPWORLD.COM (ZAP) CEO Gary Starr. "Marketing costs as a percentage of sales are continuing to drop, and sales are continuing to climb. We have had, and will continue to have for the short term, significant expenses associated with acquisitions and new product developments as we continue to build the personal electric vehicle industry."

    Starr added: "The second quarter results are not yet reflective of some of the significant events which have taken place in the past couple of months. Last month we announced that our sales orders in hand hit an all time high of $1.5 million. Today we are reporting this, in spite of back-to-back record shipping months, has now risen to a record high of $1.9 million. Our second, broader design patent has been allowed on the ZAPPY, and ZAP now owns 12 patents and several strong trademarks in the electric vehicle field. ZAP is in the strongest cash position of its history, with the completion of our preferred stock offering in June. Finally, our recent agreements in Asia will continue to drop our cost of goods, and increase our marketing presence in the near future."

    During the second quarter of 2000, ZAP appointed John R. Dabels as President. The Company also announced that it closed its agreement to acquire Aquatic Propulsion Technology, Inc. (APT), an electric sea scooter company based in Pompano Beach, Florida.

    ZAP's Common shares are listed on Nasdaq SmallCap market under the trading symbol "ZAPP".


                             ZAPWORLD.COM
                CONSOLIDATED STATEMENTS OF OPERATIONS
                  (Thousands, except share amounts)

                           Quarter ended            Six Months ended
                              June 30,                  June 30,
                          2000         1999         2000         1999


NET SALES               $2,283       $1,513       $4,180       $2,677

COST OF GOODS SOLD       1,475          843        2,658        1,599

GROSS PROFIT               808          670        1,522        1,078

OPERATING EXPENSES
 Selling                   347          249          748          449
 General and
  administrative           815          296        1,495          515
 Research and
  development              166           76          311          123
                         -----         ----        -----        -----
                         1,328          621        2,554        1,087

INCOME/(LOSS)
 FROM OPERATIONS          (520)          49       (1,032)          (9)

OTHER INCOME (EXPENSE)
 Interest income            40           18           77           19
 Other income (expense)      3           (2)          (5)         (77)
                           ---          ---          ---          --- 
                            43           16           72          (58)

NET INCOME/(LOSS)        $(477)         $65        $(960)        $(67)

NET INCOME/(LOSS)
 PER COMMON SHARE,
 BASIC AND DILUTED      $(0.09)       $0.02       $(0.19)      $(0.02)

WEIGHTED AVERAGE
 OF COMMON SHARES
 OUTSTANDING         5,224,200    3,754,900    5,187,000    3,294,000