SOURCE: ZAP

October 16, 2006 08:30 ET

ZAP Celebrating 12th Anniversary, Electric Car Sales a New Milestone

SANTA ROSA, CA -- (MARKET WIRE) -- October 16, 2006 -- Alternative transportation pioneer ZAP (NYSE Arca: ZP) is celebrating its 12th anniversary in business. The publicly owned Company recently rolled out its first electric car, the ZAP XEBRA city car. With dealers opening in several states across the country, management and employees are reveling in the Company's new automotive status.

During 2005 and 2006, renewed concerns over rising energy costs and the environment have increased demand for the vehicles and technology marketed by ZAP. Automotive distribution has also started generating revenue in the past several months. Last week ZAP projected record sales for the first nine months of 2006.

Some experts agree that today there are few, if any, electric transportation companies targeting personal and automotive electric transportation that have been in existence longer than ZAP. The history of electric transportation dates back to the early 1800s, according to the Electric Auto Association. Some say there has never been a company offering a full-line approach to electric transportation like ZAP.

ZAP has literally 'zapped' just about anything that moves, from bicycles, to scooters, mopeds, motorcycles, go-karts, golf carts, seascooters, mobile electronics, ATVs, dirt bikes, and now cars and trucks. Since 1994, ZAP has delivered nearly 100,000 consumer electric vehicles and has been recognized worldwide as a leader for energy-efficient transportation.

About ZAP

ZAP stands for Zero Air Pollution®. A leader in advanced transportation technologies since 1994, ZAP is at the forefront of fuel-efficient transportation with new technologies including energy efficient gas systems, hydrogen, electric, fuel cell, alcohol, hybrid and other innovative power systems. For more information, visit http://www.zapworld.com.

Forward-Looking Statements

Statements in this press release that relate to future plans or projected results of ZAP are 'forward-looking statements' within the meaning of Section 27A of the Securities Act of 1933, as amended by the Private Securities Litigation Reform Act of 1995 (the "PSLRA"), and Section 21E of the Securities Exchange Act of 1934, as amended by the PSLRA, and all such statements fall under the 'safe harbor' provisions of the PSLRA. ZAP's actual results may vary materially from those described in any 'forward-looking statement' due to, among other possible reasons, the continued acceptance of ZAP's products, increased levels of competition, new products and technological changes, ZAP's dependence on third-party suppliers, intellectual property rights, and the realization of any of the other risks described in ZAP's Annual Report on Form 10-KSB, or in any of ZAP's other filings with the Securities and Exchange Commission. Readers of this press release are cautioned not to put undue reliance on forward-looking statements.

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