ZENN Motor Company

ZENN Motor Company

September 24, 2009 12:56 ET

ZENN Motor Company Updates Business Strategy

TORONTO, ONTARIO--(Marketwire - Sept. 24, 2009) - ZENN Motor Company Inc. ("ZMC" or the "Company") (TSX VENTURE:ZNN), a leading developer of zero emission transportation solutions and technologies, wishes to update its stakeholders regarding its business strategy and focus.

The Company reaffirmed today that its primary market strategy for highway capable transportation will be through broad distribution of its ZENNergy™ drive, an electric drivetrain solution, powered by EEStor and integrating third party and proprietary technologies being developed by the Company. The previously announced cityZENN highway capable electric vehicle will not be developed into a standalone commercially available offering. Management believes that this refinement to the Company's business strategy and focus provides for the most efficient allocation of Company resources to maximize future profit potential.

"Integration of the ZENNergy™ drive in OEM vehicles has always been our long term objective. The advancement of the development of EEStor's technology, combined with the industry's increased focus on electric vehicle solutions in the past two years, helped us accelerate this decision to focus exclusively on the ZENNergy™ drive," stated Ian Clifford, Chief Executive Officer of ZENN Motor Company. "Given the timelines involved, introducing the cityZENN directly into the marketplace would have ultimately competed with our prospective OEM and Tier 1 supplier engagements and create unnecessary near-term confusion at the consumer level. At the end of the day, we want to partner with all OEMs so that consumers can drive a variety of electric vehicles across numerous automotive brands with one common denominator --they are all Powered by ZENNergy™."

"A significant amount of the work that our engineering team has done to-date on the cityZENN project applies directly to ZENNergy™ drive. Leveraging this work will greatly assist our discussions with prospective partners across the automotive industry and will allow our product marketing and engineering teams to focus wholly on bringing ZENNergy™ drive solutions to market," stated Clifford. "ZENNergy™ drive solutions will similarly be developed to address the other markets that ZMC holds the EEStor marketing rights for."

"We have the opportunity to either challenge a small part of the market as an OEM, or to leverage the numerous established OEMs with their respective brands and infrastructure," continued Clifford. "With access to global platforms through multiple partners, we believe we can be much more successful as a strategic technology provider than an automaker."

About ZENN Motor Company Inc.

ZENN Motor Company, Toronto, Canada, is dedicated to being a global leader in zero emission transportation solutions and technologies for markets around the world. Driven by quality, ingenuity and a philosophy of social responsibility, the ZMC team is redefining what is possible in both urban and business fleet transportation.

ZENNergy™ drive solutions, powered by EEStor's energy storage technology are expected to enable OEM and Tier 1 partners to deliver advanced electric transportation solutions to their customers. The Company has exclusive rights to deploy the technology in:

- New 4-wheeled passenger vehicles with a curb weight of up to 1,400 kilograms, net of battery weight (this does not include vehicles that are classified as Sport Utility Vehicles, Pickup Trucks, Trucks, Trams, Buses and certain high-performance sports cars);

- For Low-Speed Vehicles, golf carts and similar-styled utility vehicles and;

- The aftermarket conversion to ZENNergy™ drive of any 4-wheel vehicles that utilize internal combustion, electric, (or a combination thereof) drive systems and have been licensed for road use for more than one year

The current ZENN low-speed vehicle is perfect for urban commuters and commercial fleets such as resorts, gated communities, airports, college and business campuses, municipalities, and parks and is sold through a network of retailers across the United States and directly by the Company in Quebec.

Forward-looking Statement

Certain statements in this release, other than statements of historical fact, may include forward-looking information that involves various risks and uncertainties that face the Company; such statements may contain such words as "may", "would", "could", "will", "intend", "plan", "anticipate", "believe", "estimate", "expect" and similar expressions, and may be based on management's current assumptions and expectations related to all aspects of the automotive industry, consumer demand for zero emission transportation solutions and the global economy. Risks and uncertainties that may face the Company include, but are not restricted to: the EEStor energy storage technology may not be successfully commercialized at all, in a manner providing the features and benefits claimed by EEStor while under development, or on a timely basis or the Company may not be able to successfully incorporate this technology into its current or proposed products; the Company could fail in its efforts to develop a viable ZENNergy Drivetrain on a timely basis; steps taken by the Company to protect its proprietary rights may not be adequate or third parties may infringe or misappropriate the Company's proprietary rights; competitors may develop products which offer greater benefits to consumers, have greater market appeal or are more competitively priced than those offered by the Company; new products introduced by the Company may not be accepted in the market or to the extent projected; new laws and regulations may be enacted or existing ones may be applied or governmental action may be taken in a manner which could limit or curtail the production or sale of the Company's products; . These risks and uncertainties may cause actual results to differ from information contained in this release, when estimates and assumptions have been used to measure and report results. There can be no assurance that any statements of forward-looking information contained in this release will prove to be accurate. Actual results and future events could differ materially from those anticipated in such statements. These and all subsequent written and oral statements containing forward-looking information are based on the estimates and opinions of management on the dates they are made and expressly qualified in their entirety by this notice. Except as required by applicable laws, the Company assumes no obligation to update forward-looking statements should circumstances or management's estimates or opinions change. Readers are cautioned not to place undue reliance on any statements of forward looking information that speak only as of the date of this release. Additional information identifying risks and uncertainties relating to the Company's business are contained under the heading "Risk Factors" in ZMC's current Annual Information Form and its other filings with the various Canadian securities regulators which are available online at www.sedar.com.

Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

Contact Information