Sales for New ZAP Electric Car Jump With Gas Prices

ZAP XEDRA

SANTA ROSA, Calif.--May 31, 2006--Automotive pioneer ZAP (NYSE Arca:ZP) announced today a surge in new business for its electric vehicle, the XEBRA(TM), with concerns over rising gas prices generating a half a million dollar backlog in XEBRA orders from dealers and fleet buyers.

ZAP held sneak-preview test drive events for the new micro-car in early May to get feedback from the public, fleet buyers, dealers and government officials. ZAP calls the XEBRA a 'City-Car,' designed to travel at a top speed of 40 MPH with a range up to 40 miles per charge. ZAP's idea with the XEBRA is to create an economical alternative to gas cars, useful for around town fleet driving or multi-car families. ZAP Chairman Gary Starr said the response from the test drives was positive.

"Surging gas and oil prices and a half million dollar backlog in orders for the XEBRA validate the timing of ZAP's business plan," said Starr. "ZAP is now entering production on the only city-speed oriented electric car in the world. We expect orders to accelerate in June, historically a time when gas prices spike with summer driving."

Starr noted ZAP's business plan to establish a dealer network marketing advanced technology vehicles. A publicly owned company based in Northern California, ZAP recently announced that it has shipped its 200th Smart Car Americanized for ZAP, the famous European micro-car now featured in the major motion picture The Da Vinci Code. ZAP is also working to develop other vehicles as part of its automotive business plan, which includes a new ethanol powered micro-car from Brazil.

About ZAP

ZAP has been a leader in advanced transportation technologies since 1994, delivering over 90,000 vehicles to consumers in more than 75 countries. ZAP is at the forefront of fuel-efficient transportation with new technologies including energy efficient gas systems, hydrogen, electric, fuel cell, ethanol, hybrid and other innovative power systems. The Smart Car Americanized by ZAP currently complies with regulatory requirements in all states except California and four other states. ZAP is not affiliated with, or authorized by, smart gmbh, the manufacturer of Smart automobiles, or the smartUSA division of Mercedes-Benz LLC, the exclusive authorized U.S. importer and distributor of those vehicles. For more information, visit http://www.zapworld.com.