U.S. Company Inks Agreement With China To Open Electric Vehicle Centers In Shanghai and San Francisco
19 March 1998
U.S. Company Inks Agreement With China To Open Electric Vehicle Centers In Shanghai and San Francisco
SEBASTOPOL, Calif., March 18 -- ZAP Power Systems
(OTC Bulletin Board: ZAPP) of Sebastopol, California and Suncom Machine Co.
Ltd. of China announced an agreement today that will open the first electric
bicycle and scooter stores in the U.S. and in China. The U.S.'s first-ever
electric bicycle retail/rental store, is set to open on Wednesday, March 18,
at San Francisco's Fisherman's Wharf. In Shanghai, China, the first store of
this partnership will open on March 19th, and, like its U.S. counterpart, will
concentrate on sales to the public of small EVs, as well as rentals and
battery exchanges.
Under the terms of this historic EV agreement, ZAP has received exclusive
North America marketing rights for the Electricycle(TM), made by Suncom, the
first commercialized electric scooter. "No full-sized EV scooter has ever
received a license for sale in China," said Jimmy Lin of Suncom. Due to
China's growing concerns over air pollution, the Shanghai government has
suspended the issuance of licenses for gas powered mopeds, and has pledged to
reduce the number of Shanghai's current 470,000 gas units to only 100,000 by
the year 2000.
At these stores, both the electric scooters and ZAP electric bikes will be
available to for test-rides. In order to meet the time challenges of charging
up both the electric scooters and the electric bikes, the stores will feature
a "quick battery exchange." This will allow the batteries to be swapped in
about the same time it takes to fill up a gasoline-powered car.
"The challenge that all other electric vehicle companies face is the
battery," said Bill Watson, executive vice president for Centennial Capital
Management, a San Jose-based investment banking firm. "The ZAP strategy makes
practical sense today for today's marketplace."
Large auto manufacturers such as Ford , Chrysler and GM
have only sold a few hundred electric cars, yet ZAP claims they
have sold over 9,000 electric bikes and systems.
In another foreign transaction, ZAP also announced that they have received
a purchase contract for over $150,000 from Z-Mark, a Taiwanese importer.
According to Louis Shih, a 30-year veteran of the bicycle industry, and
managing director of Z-Mark, "The market for electric bicycles is growing in
South East Asia, and we found the ZAP to be the best system."
ZAP intends to finance the increase in manufacturing and its ZAP EV stores
through a recently cleared public offering of stock. The shares will only be
sold by means of the prospectus directly from the company and specific
brokers. A prospectus is available in selected states by calling ZAP at its
Sebastopol office at 800-251-4555, or by downloading it from ZAP's web site at
http://www.zapbikes.com.
SOURCE ZAP Power Systems
