October 12, 2006 11:40 ET

ZAP-Shandong Jindalu Auto Venture Campaigns to Reduce Greenhouse Emissions

U.S.-China Car Venture Pledges to Plant Trees for Every Vehicle Sold

DEZHOU, CHINA -- (MARKET WIRE) -- October 12, 2006 -- Officials from China auto manufacturer Shandong Jindalu Vehicle Company Ltd. and ZAP (Zero Air Pollution) (NYSE Arca: ZP) of the United States planted a tree yesterday to dedicate their new venture and auto manufacturing facility in China.

The "America China Friendship Tree" was selected to symbolize the new U.S.-China joint venture to develop forms of transportation that reduce greenhouse gas emissions. ZAP Chairman Gary Starr says the collaboration can go a long way towards restoring a balance with nature.

"A typical gas car can produce as much as 6 tons of carbon dioxide a year," says Starr. "So the best thing you can do to offset your personal carbon footprint is replace that gas car with an electric car. Another way is to plant and raise trees."

The joint venture agreement signed by ZAP and Shandong Jindalu pledges that for every vehicle sold a tree would be planted in the United States and China. Starr attended the ceremony in Lingxian with Shandong Jindalu President Mr. Lu, government officials and auto industry leaders. The tree was planted in front of Lingxian Middle School, the city's largest, and government officials have agreed to plant additional trees along a nearby river.

The event also dedicated the new construction of a manufacturing facility to accommodate the joint venture. Projected for completion by summer of 2007, the factory would have the capacity to produce 50,000 vehicles a year employing a workforce of 1,200. ZAP has established an office in Dezhou to facilitate the joint venture. The factory would design and manufacture a variety of new vehicles, including an electric car and other forms of transportation powered by alternative energy.

The joint venture agreement includes a declaration: "Recognizing that petroleum is a finite source of energy and that 54 percent of all petroleum is used to fuel our vehicles, and that one of the major causes of global pollution and global warming is the burning of petroleum in conventional vehicles and that one of the fastest growing segments of CO2 production is the replacement of bicycles around the world with conventional, non-efficient petrol burning vehicles."

The joint venture also invites "entrepreneurs, capitalists, governmental and educational institutions throughout China and the world to join in the tree planting effort. The joint venture also seeks energy storage and battery companies, battery manufacturing, solar energy, engine development, new material design, automobile manufacturing, parts and supplies distribution, as well as engineering and design services from throughout the world to join in the venture."

About ZAP

ZAP has been a leader in advanced transportation technologies since 1994, delivering nearly 100,000 vehicles to consumers in more than 75 countries. 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

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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