ZAP Signs Electric Car Agreement

SEBASTOPOL, Calif., Dec. 10, 2002; ZAP, the Northern California pioneer in electric bicycles and scooters, announced today its subsidiary Voltage Vehicles has signed an agreement for a new ZAP brand of electric automobile.

ZAP expects to unveil the new electric cars on January 9, 2003 at the International CES in Las Vegas, Nevada, the world's largest consumer technologies event with more than 100,000 annual attendees.

Voltage Vehicles, a subsidiary of ZAP, has signed an exclusive agreement with a European-based group of companies involved in the design and manufacturing of electric automobiles. The group has started production on several different types of light electric utility vehicles for urban transportation and commercial use, including a 25 MPH neighborhood electric car that is now available. A representative from the European group, Riccardo Coles, says they are working with ZAP to launch their initial sales in North America.

"We feel the timing for electric cars is now," said Coles. "There has never been more of a need throughout the world for clean transportation technologies. According to air quality studies, pure electrics are much more efficient and produce much less pollution than other technologies, including the new hybrids. We looked throughout the world for the best way to launch our new cars and decided that the USA is the right place and ZAP is the right company. We believe that ZAP has a recognizable brand in this industry and the right distribution strategy."

Coles added that the group of companies he represents is forming a new car company that will focus on electric propulsion technologies. All of the companies, says Coles, have experience in making traditional automobiles. One of them, Studio Linia 2 of Torino, Italy, has designed some of the most famous brands of Italian automobiles.

Through its subsidiary Voltage Vehicles, ZAP is working to establish a distribution network for its electric vehicles in the independent auto dealer market. ZAP merged with Voltage Vehicles earlier this year in order to target the automotive market with advanced transportation technologies. Voltage Vehicles has licensed for the distribution of vehicles from a number of different vehicle manufacturers. Voltage Vehicle founder Steve Schneider was recently named Chief Executive Officer for ZAP.

"The vision of ZAP has always been to offer a complete line of affordable, quality electric vehicles to give consumers around the world choices about what they drive," said Schneider. "Our announcement today takes us to a whole new level of commitment towards electric transportation. I believe that we have found the right partner with the same vision."

The first of the vehicles, a 25 MPH neighborhood electric car, is on display at a new ZAP Store in downtown Santa Rosa. The venture also includes an electric van, pickup, and commercial vehicle. ZAP's new neighborhood car on display at the ZAP Store has an enclosed canopy and includes climate controls as well as all the equipment and features of conventional automobiles. The car utilizes several innovations in electronic propulsion design and engineering. All the instrumentation for the car can be accessed via a control pad on the steering wheel.

ZAP's announcement today includes plans for a new commercial vehicle that can be built in different configurations for use in construction, agriculture and excavation. One of the designs includes a backhoe and loader and Company officials say the new electric excavator offers a new experience compared to internal-combustion.

"Eight hours on a quiet pollution-free backhoe with no engine vibration is like relaxing or playing an arcade game, not like work," said Schneider. "Electric drive technology is almost silent so it can eliminate noise restrictions and extend working hours to around-the-clock production. Whether in suburban areas or high density city locations, contractors can meet time sensitive deadlines without noise regulation."

The new ZAP car can be seen and test-driven by appointment at the ZAP Store, located in downtown Santa Rosa across the street from the Santa Rosa Plaza. The address is 300 B Street on the corner of B Street and 4th Street. Contact them by phone at 707-545-5756.