SOURCE: ZAP

January 07, 2008 07:00 ET

ZAP Electric Car Offers Zero Fuel Costs for One Year

SANTA ROSA, CA--(Marketwire - January 7, 2008) - Electric car pioneer ZAP (OTCBB: ZAAP) announced today that it is offering free electricity to charge your electric car for one year.

When you reserve a Xebra electric sedan or pickup online at http://www.zapworld.com you will get a free Kill-A-Watt Smart Power Meter and free electricity for one year.

"We know that our Xebras can save consumers money on fuel costs, so we wanted to prove it," said ZAP Chairman Gary Starr.

Customers participating in this program would have zero fuel costs for one year. The program is good for any order through Valentine's Day, February 14, 2008. For more details, visit http://www.zapworld.com/electric-vehicles/electric-cars/xebra-sedan.

Starr says that the Xebra is the offspring of more than three decades of thought and evolution in electric transportation. The Xebra is a unique vehicle aimed at filling the need for a gas-free, all-electric car that is practical and affordable. ZAP created the Xebra electric vehicle through a strategic partnership with a Chinese automaker. It is one of only a few street-legal electric vehicles in mass-production today that can travel faster than 25 MPH.

ZAP calls the Xebra a 'City Car,' a unique design suitable for urban, non-freeway driving. The car is ideal for households that want a fun, inexpensive vehicle for running errands around the city or for municipal and corporate fleet use. Unlike the hybrids currently on the market in the U.S., the ZAP car needs no gas at all; just plug into any conventional outlet, 110 or 220 volts.

ZAP says customers all over the country have fallen in love with gas-free Xebra driving:

--  Aspen, Colorado -- "This is the perfect vehicle for the constant short
    trips my employees and I need to make in the area," said Liz Shapiro, owner
    of Above & Beyond Concierge service.
    
--  Elkhart, Indiana -- Jon Faux said he squeezed over 50 miles of range
    out of his Xebra and loves the money he saves on gas.  "The research I've
    conducted on my electric rates reveals that I'm getting the cost equivalent
    of about 600 miles to the gallon."
    
--  Olympia, Washington -- "I love my ZAP!  I had a chance to show if off
    during a couple events and Show & Tell at a couple schools.  I'd love to
    see more of these on the streets," says Dee Williams.
    
--  Long Island, New York -- "I love my Xebra Sedan and use it as my
    'station car' to commute from my home to the train station for my train to
    the city every day. I used to drive a Ford Think and loved it until they
    recalled it. Ever since then I've been searching for a production electric
    and am so pleased I found the Xebra Sedan," said Barry R.
    
--  Salem, Oregon -- Les and his wife are teachers and bought a Xebra for
    their 16-year-old daughter.  "She's in love with her car and we are happy
    knowing that she can safely drive around our city, but won't be speeding up
    and down the freeway," says Les. "However, the Xebra's speed and range
    limitations really aren't limiting at all. She can get to the mall, movie
    theater, after-school activities, and music lessons easily."  Daughter: "My
    favorite thing about my car is that I never have to ask my parents for gas
    money."
    
--  Dawson Springs, Kentucky -- Jim Seibert, owner of Tri-County
    Refrigeration said: "It's the cheapest thing I've ever seen.  I LOVE
    IT!!!!!!!!!!!! I mean c'mon? I paid a little over $10,000 (that ain't
    much).  I have put 1000 miles on it in a little over a month.  It's perfect
    for local service calls."
    


ZAP says part of the excitement is that Xebra customers represent a new wave of environmental advocacy. They don't only buy the cars to drive around in, but to make a statement and use it as a vehicle for change. Steve Isom at http://www.EVCarolina.com helped introduce a new state law in South Carolina that provides a tax credit for electric cars. Joe Lambrix of Olympia, Washington has started his own non-profit http://pluginolympia.com helping businesses install free charging stations for electric cars around town.

ZAP says that a majority of its first customers have been consumers, but as more businesses, government and corporate fleets learn about the vehicle, they have been approaching ZAP. Recently UPS leased a fleet of 42 Xebras to help with their peak holiday small parcel deliveries. The City of Richmond, California was the first city to use Xebra trucks in its fleet.

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, hydrogen, electric, fuel cell, ethanol, hybrid and other innovative power systems, ZAP has a joint venture to manufacture electric and hybrid vehicles with Youngman Automotive Group, one of China's leading manufacturers of buses and trucks. ZAP is developing a high-performance crossover SUV electric car concept called ZAP-X engineered by Lotus Engineering. ZAP is also developing a new generation of vehicles using advanced nanotech batteries with Advanced Battery Technologies. 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.

Forward-looking statements in this release are made pursuant to the "safe harbor" provisions of the Private Securities Litigation Reform Act of 1995. 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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