August 05, 2008 10:37 ET

UPDATE: 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 for future working capital enabling ZAP to meet growing demand for its electric vehicles. The financing arrangement allows for advances by ZAP over the next few years.

"Orders for ZAP's full-line of electric vehicles have been increasing as a result of the company's rapidly expanding dealer network," said ZAP CEO Steve Schneider. A year ago, ZAP had 20 dealers, a number that has increased to 50 today. The Company has also seen dramatic growth in scooter sales through its 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 new 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. Over the past year The Al Yousuf Group and Mr. Al Yousuf personally have taken an interest in ZAP as an investor, customer and now in a management role. Two of Al Yousuf's key executives have visited ZAP over the summer.

ZAP introduced the Xebra in June of 2006. The designers of the Xebra said that because electric vehicles are significantly different than gas-powered cars, they require a fresh sales approach. Xebra vehicles are attractive because they are practical, affordable and, most important, they are available for delivery today 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 110v outlet like a cell phone. Many Xebra owners say it costs about 50 cents to fuel up where gas-powered cars fill up for $50 or more. The Xebra is manufactured in China to achieve affordable pricing on a global basis.

ZAP believes its Xebra vehicles are growing in popularity because families are demanding more economical transportation. Rather than buy a new gas-powered car on a tight budget, many multi-car families are opting for a new Xebra instead to handle all short trips around town, avoiding the expense and wear-and-tear on their older gasoline vehicles. Business fleets have also been field-testing ZAP vehicles, including Dominos Pizza, UPS, Coca-Cola, El Pollo Loco and others. City and county departments have started adding ZAP vehicles to their fleet operation.

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.

Contact Information