Iacocca Affirms Market for Electric Bikes

2 February 1999
Iacocca Affirms Market for Electric Bikes
                           ZAP Sells 20,000th Unit

    SEBASTOPOL, Calif., Feb. 2 -- Automotive marketing visionary
Lee Iacocca, father of the Mustang and the minivan, believes there will be a
growing market for electric bikes. A February 1 TIME magazine article about
the former automotive executive helps affirm a market that Northern
California's ZAP Power Systems (OTC Bulletin Board: ZAPP) helped pioneer in
1994.
    "I spent all my life putting minivans and Jeeps in American garages," said
Iacocca in TIME. "I think I have one vision left in me before I die, and it's
electric."
    Iacocca came out of retirement in 1996 to form his own electric bicycle
company EV Global Motors. Poised to launch sales this month of a
$995 "E-Bike," Iacocca targets sales of 1000 bikes per week through auto
dealerships
    Officials at ZAP agree that the market for electric bikes is growing. Its
own electric bikes are priced starting at $679, an electric scooter at
$649, and even a kit to make your own bike electric for $375. The Time
article, which cites ZAP as "a U.S. market leader," predicts the U.S. market
for electric bikes will double this year to a total of 30,000 units, and that
the world market already exceeds 300,000 units per year. ZAP has delivered
over 20,000 units of its electric bikes, kits and scooters since 1994.
    "We believe that our experience in the market coupled with the simplicity,
power and versatility of our patented bicycle system could place ZAP in a
strong position in the industry," said Gary Starr of ZAP. "Our distribution
strategy of Electric Vehicle Outlet stores and franchises is gaining
momentum."
    ZAP of Sebastopol, California, is a publicly owned company. Its stock
symbol is ZAPP. For further information or test rides, contact ZAP at
707-824-4150, or access its Web site at http://www.zapbikes.com.
    Forward-looking statements in this release are made pursuant to the "safe
harbor" provisions of the Private Securities Litigation Reform Act of 1995.
Investors are cautioned that such forward-looking statements involve risks and
uncertainties, including, without limitation, continued acceptance of the
Company's products, increased levels of competition for the Company, new
products and technological changes, the Company's dependence upon third-party
suppliers, intellectual property rights, and other risks detailed from time to
time in the Company's periodic reports filed with the Securities and Exchange
Commission.