August 05, 2008 07:00 ET

Al Yousuf Group Provides a $10 Million Financing Arrangement for ZAP

SANTA ROSA, CA and DUBAI, UAE--(Marketwire - August 5, 2008) - Electric vehicle manufacturer ZAP (OTCBB: ZAAP) announced today that the Al Yousuf Group, a Dubai-based conglomerate and investor, is providing a $10 million financing arrangement to provide future working capital to ZAP and help meet the growing demand for ZAP electric vehicles. The financing arrangement allows for advances by ZAP over the next few years.

ZAP says that orders for its full line of electric vehicles have been increasing and ZAP's business plan of setting up dealers is growing. A year ago, ZAP had about 20 automotive dealers, a number that has risen to 50 today. The Company has been expanding its scooter sales and has sold to almost 70 scooter and bicycle dealers in the past year. ZAP added that demand for dealerships is growing in the US and abroad and expects the Company to add a significant number of dealers and distributors over the next 12 months.

"This is the opportunity of a lifetime for ZAP and we are ready to seize the moment," said ZAP Chairman Eqbal Al Yousuf, who is President of the Al Yousuf Group, one of the largest distributors of automobiles in the Middle East.

ZAP introduced the Xebra in June of 2006. The designers of the Xebra said that because electric vehicles are different than gas they required a different approach. The main goals with the Xebra were to be practical, affordable and, mostly, available in an era of record gas prices when few electric alternatives exist. The vehicle is designed for in-town driving at speeds up to 40 MPH and can recharge at any normal outlet like a cell phone. Many Xebra owners say it costs about 50 cents to fuel up where gas cars fill up for $50 or more. The Xebra is manufactured in China so that the vehicles can be made affordable on a global basis.

ZAP believes another reason the Xebra is growing in popularity is because families are demanding more economical cars. Rather than buy a brand new gas car on a tight budget, many multi-car families are opting for a new Xebra to handle all those short trips around town while saving wear-and-tear on their older gasoline model. Business fleets have also been trying out the vehicles, including Domino's Pizza, UPS, Coca-Cola, El Pollo Loco and many more. City and county fleets have also started adding ZAP vehicles to their fleets.

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 plan 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. The venture has future plans however they 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.

Contact Information