August 18, 2008 07:00 ET

$68 Million in Kentucky Manufacturing Incentives Fast Tracks Electric Vehicle Talks at ZAP Headquarters With Integrity Manufacturing

SANTA ROSA, CA--(Marketwire - August 18, 2008) - Randall S. Waldman and Larry Cottingham of Integrity Manufacturing LLC are in Santa Rosa, California today for meetings with the management of electric vehicle pioneer ZAP (OTCBB: ZAAP).

Integrity Manufacturing has been working with the State of Kentucky to help provide incentives to attract more manufacturing and assembly to the state. On Friday The Kentucky Economic Development Finance Authority gave preliminary approval for $68 million in state incentives for a large-scale manufacturing initiative with Integrity. The project is expected to bring economic development, new factory production and up to 2,500 jobs to Kentucky.

Integrity Manufacturing has become a US manufacturing success story and is one of the fastest growing companies in Kentucky. According to Integrity, they have achieved rapid growth in the past year by offering competitive manufacturing to products once made in China and other overseas markets.

CNN reports that manufacturing in China is becoming more expensive. Labor rates are rising by 10 to 15 percent annually. Also new environmental, health and quality reforms are increasing the costs of Chinese manufacturing. Coupled with the weak dollar the rising yuan, US companies are finding Chinese outsourcing less favorable than in the past. (See "In China, outsourcing is no longer cheap" at URL:

"Made in the USA" is more than just a slogan; it's a mission to Integrity CEO Randall Waldman, the visionary behind Integrity's success. Waldman says that every product that leaves his plant is stamped with USA-KY to show where it was made. According to Waldman, Integrity's Louisville plant is currently manufacturing for HomeDepot, EMD along with 20 other Fortune 1000 companies. On Friday, Integrity signed a $100 million contract with Boston-based BioDefense Corp. to produce their MailDefender security device that will be marketed throughout the world, a project expected to create 125 new jobs.

ZAP manufactures its electric vehicles primarily in China and Integrity has invited ZAP to consider expanding its manufacturing in the state as part of Kentucky's economic development. Orders for ZAP's full-line of electric vehicles have been increasing and ZAP has been working to find ways of expanding it manufacturing.

Integrity says the prospect of building electric vehicles in Kentucky has attracted support from throughout the automotive industry. Waldman says he has been approached by a number of individuals and companies with automotive manufacturing expertise who wish to play a role in the electric vehicle project.

Auto dealer Larry Cottingham is also visiting ZAP today. Earlier this year Cottingham started a one-man campaign to expand the use of electric vehicles in the state. Over time Cottingham attracted help from Waldman with Integrity Manufacturing as well as several local political leaders. Two weeks ago his hard work paid off as a coalition of state legislators, led by Governor Steve Beshear, passed a law clearing the road for more electric vehicle use in the state, including ZAP's Xebra electric sedan and truck.

About Integrity Manufacturing:

Integrity Manufacturing was formed in February 2007 with 7 employees. Integrity has grown to over 400 employees and is the fastest growing company in Kentucky. Integrity Manufacturing has a combined square footage of over 250,000 square feet in three Kentucky locations. Integrity Manufacturing is the recipient of the 2007 "Emerging Business" award presented by Business First in Kentucky. Integrity's sales have consistently grown by focusing on industries that represent current and continued growth such as energy, transportation and material handling. To learn more about Integrity Manufacturing visit their web site at

About ZAP

ZAP has been a leader in advanced transportation technologies since 1994, delivering over 100,000 vehicles to consumers in more than 75 countries. ZAP is positioning its business at the forefront of fuel-efficient transportation with new technologies including energy efficient gas systems, electric, hybrid and other innovative power systems. ZAP has a joint venture called Detroit Electric to manufacture electric and hybrid vehicles with Youngman Automotive Group. Detroit Electric is developing a freeway capable electric vehicle called the ZAP Alias. Future plans for the venture are dependent upon both parties receiving outside financing. ZAP is also developing a new generation of vehicles using lithium batteries. The Company recently announced a strategic partnership with Dubai-based Al Yousuf Group to expand its international vehicle distribution. ZAP also makes an innovative, new portable energy technology that manages power for mobile electronics from cell phones to laptops. For product, dealer and investor information, visit

This press release contains forward-looking statements. 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.

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