SOURCE: ZAP

October 11, 2006 08:30 ET

Austin's 'Shock Value' Unveils New ZAP Electric Car

ZAP Introduces New All Electric Vehicle to Texas Consumers

AUSTIN, TX -- (MARKET WIRE) -- October 11, 2006 -- An all electric car from automotive pioneer ZAP [NYSE Arca: ZP] was unveiled yesterday at Shock Value, a new dealer for ZAP in Austin, Texas.

Shock Value has submitted an application to the State and is awaiting its dealer license to commence sales for the all-electric XEBRA. Owner John Martin has signed a license agreement with ZAP (http://www.zapworld.com), a publicly owned automotive distributor based in Santa Rosa, California, to sell the new ZAP micro-car in Austin.

"We are excited that the State of Texas, so famous for its oil, is considering our application to provide a new form of transportation that uses no oil at all," said ZAP Chief Executive Officer Steven Schneider.

The new all-electric ZAP XEBRA PK was unveiled as part of Shock Value's blitz to spark interest with Austin consumers, government and corporate fleets. Owner John Martin liked driving the new electric car so much he decided to work with ZAP in bringing them to Austin.

"This all started when I noticed how expensive it was getting to fill up the family car," said Martin. "In my quest to find an electric car I discovered ZAP and found the XEBRA to be the only viable option."

Martin is a long-time resident of Austin and says the city would be ideal for electric transportation because of the heightened awareness about the environment, the economy and rising gas prices. As a young man he didn't own a car in Austin and used roller blades to travel throughout the downtown. Later, as a stay-at-home father, he got involved part-time with Montessori schools in the area, eventually helping to found two new Montessori schools in Austin. Today he serves as part of a delegation representing Montessori education to the United Nations and says the experience is helping him understand the importance of planning for future generations.

"Driving my new zebra-striped ZAP around the streets of Austin, I have had so many thumbs ups, waves, and people expressing interest, I quickly realized the importance of what we would be offering to Austin in terms of a new alternative," he says.

ZAP calls the new XEBRA a "City Car," a unique design ideal for urban, daily driving. Recently ZAP introduced a new pickup design, the XEBRA PK, which can be used as a standard truck, a flat bed, delivery or dump truck. ZAP is setting sales records this year with its micro-car strategy for auto dealers and the introduction of the all-electric XEBRA. Studies show that electric cars are less expensive to fuel, costing 2 to 3 cents per mile versus 10 cents and more for gas. They also reduce greenhouse gas emissions by more than 90 percent over internal combustion, including power plant emissions.

About ZAP

ZAP has been a leader in advanced transportation technologies since 1994, delivering over 90,000 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 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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