Donner Corp. International Reiterates Buy Recommendation on ZAPWORLD.COM
4 December 2000
Donner Corp. International Reiterates Buy Recommendation on ZAPWORLD.COM
SANTA ANA, Calif., Dec. 4 The following is being issued by
Donner Corporation International, a member of the National Association of
Securities Dealers, CRD number 37702.
Donner Corp. International, an Investment Banking firm headquartered in
Santa Ana, Calif., today reiterated its Buy Recommendation on ZAPWORLD.COM
, Sebastopol, California. ZAP (Zero Air Pollution) is one of
the world's leading companies in the light electric vehicle industry,
producing and marketing vehicles such as scooters, bikes and other personal
electric vehicles.
Donner said it is reiterating its Buy Recommendation based on a number of
significant announcements from the Company, including:
-- ZAP reported record revenues for the third quarter ended September 30,
2000. Revenues increased 123% to $3.9M compared to $1.7M third quarter
prior year. For the nine months ended September 30, 2000 revenues
increased 83% to $8.1M from $4.4M for the nine-month period prior
year. ZAP has initiated a seven-day production work shift to meet
Holiday demands.
-- The acquisition of Electric Motorbike Inc., Sebastopol, Calif., a
developer of one of the world's only electric motorcycles. The
Company's LECTRA is believed to be one of the world's only
production-ready electric motorcycles. This is the fourth electric
vehicle company acquired by ZAP in the past 12 months.
-- According to a study released by Business Communications Co., Inc. the
U.S. electric vehicle (EV) market will grow at an impressive rate of
27% annually through 2005, when it will become a $7 billion industry
and the largest segment of the EV market will continue to be
smaller-sized vehicles, which now represent 86% of the EV market.
Global environmental pressures, higher oil prices, population pressures
and urban traffic congestion are creating this strong demand.
-- The announcement that Lucas Learning Ltd, producer of high quality
interactive products including a console video game based on Star Wars,
is co-marketing ZAP's latest scooters.
-- The announcement that ZAP has signed an exclusive distribution contract
with an Italian firm for four European countries, including Italy. ZAP
has sold its scooters in 65 countries worldwide.
"ZAP's strong increase in revenues reaffirms our position that ZAP is at
the forefront of the electric scooter craze sweeping the nation and is
well-positioned for continued growth. It's just unveiled ZAPPY(R) JR., an
electric scooter specifically designed for kids ages 6 to 9, which is expected
to be in high demand this Holiday Season and throughout next year and is
another indication of ZAP's innovation and marketing strategy," Donner
concluded.
Copies of the Donner report on ZAPWORLD.COM are available at
http://www.donnercorp.com.
Any information or opinion provided in this report/release does not
solicit or make an offer to buy or sell any securities or any options, futures
or other derivatives related to such securities herein. DCI and its
affiliates may trade for their own accounts in any securities of the issuer or
in related securities. DCI or its affiliates, directors, officers and
employees, may have a long or short position in securities of the issuer or
related investments. DCI or its affiliates may from time to time perform
investment banking or other services for, or solicit investment banking or
other business from, any entity mentioned in this report/release. This
research report/release has been prepared for general circulation and is
circulated for general information only. It does not have regard to the
specific investment objective, financial situation, suitability and the
particular need of any specific person who may receive this report/release.
Investors should seek financial advice regarding the appropriateness of
investing in any securities or investment strategies discussed or recommended
in this report/release and should understand that statements regarding future
prospects may not be realized. Investors should note that income from such
securities, if any, may fluctuate and that each security's price or value may
rise or fall substantially. Accordingly, investors may receive less than
originally invested. Past performance is not indicative of future
performance. Copyright 2000 DCI. In the purview of Section 17(b) of the
Securities Act of 1933 and in the interest of full disclosure, we call the
reader's attention to the fact that DCI was recently compensated by ZAPP in
the form of a $2,500 initial retainer fee and DCI receives $2,000 per month
for services provided. DCI will also receive 2,500 shares of ZAPP common
stock upon closing at $7.00 or higher for twenty-five consecutive business
days and 50,000 warrants at $12.00 per share; 5,000 @ $15.00, 10,000 @ $18.25,
15,000 @ $25.00, 20,000 @ $30.00 average 30 day closing price. There will be
a negotiable fee for merger, acquisition, institutional transactions or other
business relationships entered between ZAPP and companies introduced by DCI:
the fee for any and all transactions involving this provision will be
negotiated prior to such introduction.