SOURCE: ZAP

ZAP

June 11, 2009 09:00 ET

ZAP Completes $2 Million Private Placement

Funds for Operations and to Help Accelerate R&D

SANTA ROSA, CA--(Marketwire - June 11, 2009) - Electric transportation pioneer ZAP (OTCBB: ZAAP) (www.zapworld.com) has closed on a $2 million private placement from the Banks Group LLC.

Jeffrey G. Banks, the Group's principal and a current investor in ZAP, said, "I strongly believe in ZAP's market attractiveness, especially as they begin transition into domestic production. Given the company's knowledge, experience and leadership position, there is no doubt in my mind that we've made a predictably smart EV investment." He added, "ZAP has sharpened their focus on market segments that are growing, offering a much greater potential for both near and long-term success."

"Mr. Banks' confidence in our business plan and affirmation through his investment speaks loudly about our opportunities in electric transportation," said Steven Schneider, CEO of ZAP. "ZAP continues to innovate and lead the movement in electric transportation."

Funds from the private placement will be released in stages through 4th Q 2010 and used for general and administrative operating expenses and to continue its accelerated R&D on new electric vehicles in the planning pipeline. It is anticipated the R&D will be seen in new vehicles to be produced by Zap Motors Manufacturing's new production and assembly facility in Kentucky, an applicant for a $200 million loan under the US Department of Energy - Advanced Technology Vehicles Manufacturing and Incentive Program.

For more news and information on ZAP, please visit www.IRGnews.com/coi/ZAAP.

About ZAP

ZAP has been a leader in electric transportation since 1994, delivering over one hundred thousand vehicles to consumers in more than seventy-five countries. ZAP manufactures a line of electric vehicles, including electric city-cars and trucks, motorcycles, scooters, bicycles, and ATVs. ZAP sells some of the only electric city-speed cars, trucks and vans in production today and is developing a freeway capable electric vehicle called the ZAP Alias. For product, dealer and investor information, visit www.zapworld.com.

Forward-Looking Statement

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.

Contact Information

  • Contact:
    Investor Relations Group
    Investor Relations
    212-825-3210
    Rachel Colgate or Michael Crawford

    Media Relations
    Laura Colontrelle