ZAP Reports Financial Results for 2003

SANTA ROSA, Calif., April 1 -- Electric vehicle firm ZAP (BULLETIN BOARD: ZAPZ) today announced financial results for the fiscal year ending December 31, 2003.

According to ZAP CEO Steve Schneider: "2003 was a transitional year for ZAP as we began work to transform into an automotive distribution company. The investment ZAP made in past years as well as 2003 has paid off. Today, if you want a new car dealer license you can go to companies like Ford, Toyota, Mercedes or ZAP. ZAP is also one of the few places where you can buy an electric car today."

ZAP's total Company net sales increased by $1.4 million from $4.4 million in 2002 to $5.8 million over the year ended December 31, 2003. The increase was primarily due to the inclusion of twelve months of net sales for the RAP Group in 2003 while only six months were recorded in 2002. Included in the 2003 net sales of $5.8 million were $3.7 million for RAP and $2.1 million for ZAP. The net sales for ZAP increased by $300,000 from $1.8 million in 2002 to $2.1 million in 2003. The primary reason for the increase was greater shipments of SEASCOOTERS(TM).

ZAP's loss before extraordinary gain for the year ended December 31, 2003 were $5.5 million compared to $2.6 for the same period in 2002. ZAP says the reason for the increase in losses is related to the development of the Company's automotive marketing. The Company says it has a number of dealer agreements in place and plans to announce them during 2004.

"The results for 2003 are highlighted by an increase of total assets to now over $7 million versus $3 million in 2002," said Schneider. "Looking ahead for 2004, ZAP has what we believe to be the largest inventory of electric cars available for sale. With the U.S. gripped by record gas prices, ZAP now has over 125 zero emission vehicles in stock that range from 25 MPH neighborhood electric cars, to converted highway capable cars and trucks. We expect to be making additional announcements in the coming months." Schneider also noted several highlights for 2003:

  -- ZAP received worldwide media coverage in January 2003 at the Consumer
     Electronics Show (CES) in Las Vegas, the world's largest new technology
     exposition, where it showcased its electric car developments.
  -- ZAP's new Light Utility Vehicle (ZAP L.U.V.(TM)) received international
     media coverage with CNN, the Discovery Channel, TECH-TV, Home & Garden
     television and others, as well as popular magazines like Motortrend.
  -- On March 25, 2003, ZAP purchased a three-story office building in
     downtown Santa Rosa, California at 501 Fourth Street with approximately
     20,000 square feet of space. The new facility now houses the ZAP World
     Headquarters as well as a new auto showroom for ZAP.
  -- On September 24, 2003, ZAP celebrated nine years in business.  To date,
     ZAP has delivered more than 85,000 electric vehicles worldwide and has
     been acknowledged as a leader in electric transportation by Time
     Magazine, The Wall Street Journal, Advertising Age and Industry Week.
     Company officials believe ZAP is one of the strongest brand names in
     alternative transportation.  The names ZAP and ZAPPY have become a
     generic term for electric bicycles and scooters.
  -- Record gas prices in 2003 and 2004 have directed worldwide recognition
     towards battery-powered vehicles, particularly in light of mounting
     concerns about air pollution, energy security, global climate change,
     ozone depletion, dependence on foreign oil, as well as concerns for
     global political, military and economic conditions.
  -- In September, the new ZAP WORLDCAR(TM) won five trophies out of eight
     categories at the Michelin Challenge Bibendum, the world's largest
     gathering of over 80 alternative fuel vehicles. ZAP believes this to be
     the first production electric car assembled in China.
  -- In October, ZAP acquired an electric car rental fleet of over 100
     electric rental cars in Las Vegas, Nevada, believed to the be the
     world's largest fleet of its kind. ZAP opened an auto dealership on
     Las Vegas' auto row to complement its rental operations.

  About ZAP

ZAP has been a leader in electric transportation since 1994, delivering more than 85,000 electric vehicles to customers in more than 60 countries. A public company, ZAP is traded on the Over-the-Counter stock exchange under the symbol ZAPZ. The company offers a variety of advanced technology vehicles, including electric cars, bicycles, scooters, motorbikes, seascooters and more. For more information, visit http://www.zapworld.com/ or call +1-707-525-8658.