SOURCE: ZAP

May 15, 2008 20:07 ET

Electric Car Firm ZAP Sparks China Earthquake Relief Fund With $50,000 Donation

ZAP Challenges Others to Match or Exceed Its $50,000 Donation

DEZHOU, SHANDONG PROVINCE, CHINA and SANTA ROSA, CA--(Marketwire - May 15, 2008) -

California electric car pioneer ZAP (OTCBB: ZAAP) is starting a relief fund with the factory for its Xebra electric car and truck to aid victims of the May 12 earthquake in Sichuan, China.

ZAP is asking the public and Corporate America to make donations to assist the relief efforts in China. ZAP will match donations up to $50,000 to the American Red Cross.

ZAP CEO Steve Schneider said that one of the factories that builds electric vehicles for ZAP is very close to the epicenter of the 7.9 magnitude quake. Chinese authorities estimate the death toll could reach 50,000.

"Mr. Lu, the President of the Shandong Jindalu Xebra factory, told us the government was asking for assistance, so we responded quickly," said Schneider. "ZAP has a very special relationship with China and its partners and we wanted to help."

Others are stepping forward to help with Earthquake Relief. China's most famous athlete, NBA star Yao Ming, was planning to donate $285,000 to the relief effort.

Investors who would like to make stock donations to benefit the Sichuan Earthquake relief can do so through a program with the American Red Cross (https://www.redcross.org/donate/donatestock.html), similar to a program that helped raise funds for the Katrina Hurricane Relief and others. ZAP announced arrangements with leading discount stock brokerage firm, Muriel Siebert & Co., Inc., a subsidiary of Siebert Financial Corp. (SIEB), whereby, in order to maximize the value of contributions, Siebert will eliminate commission charges on stock donated to the American Red Cross for this effort. Donors do not need Siebert accounts and may call John Lally or Carol Liversedge at 800-728-3352 for more information.

Muriel Siebert, chairwoman, president and CEO, said, "We are honored and delighted to help."

ZAP and its partners are the first automotive venture to design a vehicle and have it manufactured by an automaker in China for export to the United States; and it's electric. ZAP has contracted electric vehicle production with factories in five different cities in China.

According to ZAP Founder Gary Starr, "Mr. Lu has been a leader in social responsibility by pioneering with ZAP in the manufacturing of one of the world's first cost-effective electric vehicles."

Starr said that the Xebra factory has made several initiatives in support of the environment and to improve employee relations. As part of its commitment to fight global warming with ZAP, the factory has planted 1000 trees at a park nearby. The factory has also worked to meet the highest standards for employee relations in China. All workers have health insurance, unemployment insurance and retirement insurance. They are also entitled to overtime if they work more than eight hours in a day and are served complimentary meals by the factory. The factory relocated last year to a modernized production facility.

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. 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. 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 http://www.zapworld.com.

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 detailed from time to time in the Company's periodic reports filed with the Securities and Exchange Commission.

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