July 11, 2006 08:00 ET

ZAP Rolls Out Electric XEBRA to First ZAP Car Dealers

New Electric Vehicle Appears to Be the Only Cost-Effective Alternative in the Nation as Oil Futures Hit Record High

SANTA ROSA, CA -- (MARKET WIRE) -- July 11, 2006 -- Automotive pioneer ZAP (NYSE Arca: ZP) announced today amid new record oil prices that it has delivered the first of its new XEBRA™ electric vehicles to five ZAP car dealerships in California, Arizona, Florida and two in Oregon.

BusinessWeek Online reported yesterday that August futures for light sweet crude reached a record of $75.78 per barrel in electronic trading on the NYMEX. Economists say that gas prices have not had a massive impact on the economy as a whole, but the $3.00-plus per gallon price tag has been harder on consumers, wiping out wage increases over the past 12 months.

Some are already making the choice to start driving electric. So far this summer, ZAP has seen interest surge for the XEBRA, with concerns over rising gas prices generating over half a million dollar backlog in XEBRA orders from dealers and fleet buyers. ZAP calls the XEBRA a 'City-Car,' designed to travel at a top speed of 40 MPH and pricing under $10,000. ZAP's idea with the XEBRA is to create an economical alternative to gas cars, useful for around town fleet driving or multi-car families.

"Everyone keeps talking about this new documentary 'Who Killed the Electric Car?' but electric cars are alive and well at ZAP," said CEO Steve Schneider.

A publicly owned company based in Northern California, ZAP's business plan is to establish a dealer network marketing advanced technology vehicles. ZAP is also working to develop other vehicles as part of its automotive business plan, including a new ethanol powered micro-car from Brazil.

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, ethanol, 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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