GEM Steps Up Marketing Programs in California

NEWPORT BEACH, Calif., July 18 -- Global Electric Motorcars, LLC, a DaimlerChrysler company, is stepping up its marketing efforts in California by launching an expanded rental program aimed at exposing first-time electric vehicle drivers to its GEM cars and turning them into potential buyers.

"Once you drive it, you'll want to buy it," says Ken Montler, president of Global Electric Motorcars (GEM), the world's largest producer of neighborhood electric vehicles (NEVs) and the largest U.S. producer of street-legal electric vehicles of any kind. More than 10,000 GEMs are on the roads in the United States.

"We think the rental market is an excellent and easy way for Californians to find out what a GEM can do," Montler says. "We believe we will reach even more Californians through rentals -- both intrastate tourists and residents -- than we have during the last year."

Montler points to GEM's years of rental experience in the Florida Keys and other resort areas that shows sales are much more likely once someone has driven a GEM. "We're dedicated to developing a strong long-term NEV market in California -- as well as the rest of the nation -- and this is just one more strategy in our larger plans for the state," Montler says.

GEM is selling the electric vehicles to ZAP (OTC Bulletin Board: ZAPZ - News), which is setting up franchise rental sites throughout the state, EV Rental Cars, the nation's leading car rental agency specializing in alternative fuel vehicles, and other rental companies.

The rental program is being conducted by independent business entities using GEM's four vehicle product lines: the 2- and 4-seat passenger models, and the short- and long-bed utility vehicle models.

ZAP will operate one rental management company, handling all insurance and processing. ZAP's first franchise location opened recently on Balboa Island in Newport Beach, Calif., with more locations expected during the course of the summer. For more information on ZAP's new electric car rental program, visit www.zapworld.com or call 800-251-4555.

EV Rental Cars opened its first GEM rental store in Santa Monica, Calif., and is planning to open more Southern California locations this summer. For more information on EV Rental Cars, visit www.evrental.com , or call 877-EV- RENTAL.

About Global Electric Motorcars

Global Electric Motorcars, the largest U.S. producer of street-legal electric vehicles, has been manufacturing the GEM neighborhood electric vehicle since 1998. The affordable GEM is designed for downtown driving, college campuses, formal and informal office campuses, planned communities, industrial parks, military bases, resorts, and similar localized uses. It costs pennies per mile to operate and is easily charged by plugging into a standard 110-volt household outlet. GEM complies with all applicable federal safety laws.

Global Electric Motorcars has extensive experience working with planned communities, universities, military bases, resorts, and small and large urban settings throughout the United States. GEM vehicles have become a key mode of transportation in several locations around the nation, including DC Ranch in Scottsdale, Ariz., Celebration in Florida, Bay Harbor in Michigan, and the Playa Vista planned community in West Los Angeles.

These vehicles have a long and successful track record of displacing many short trips traditionally taken with gasoline-powered vehicles.

DaimlerChrysler Corp. purchased Global Electric Motorcars, LLC, in December 2000. Marketing GEMs is part of DaimlerChrysler's continuing effort to develop, produce, and sell the world's most environmentally friendly vehicles. Images of GEM vehicles and additional DaimlerChrysler news are available on DaimlerChrysler's Media Services Website at www.media.daimlerchrysler.com . More information on GEM cars and utility vehicles is available at www.gemcar.com .