Electric Bicycle, Scooter Pioneer ZAP Finalizes Mergers With Two Automotive Companies

SEBASTOPOL, Calif., June 27 ZAP, the Company that popularized the U.S. market for electric bikes and scooters, announced that July 1, 2002 will be the Effective Date for mergers with Voltage Vehicles and The RAP Group, Inc., two companies specializing in automotive distribution and marketing.

The mergers are a part of ZAP's Plan of Reorganization approved June 20 by the federal court in Santa Rosa, California. June 28, 2002 will be the date of record for a reverse-split in ZAP stock. Shareholders in ZAP on the close of June 28 will receive Warrants to purchase additional shares of common stock at prices ranging from $1.50 to $10.00. According to the Plan, through the exercise of Warrants, ZAP has a mechanism that will give it the opportunity to raise working capital to meet projected sales, and thereby give all shareholders a potential of improving their position. ZAP's Plan of Reorganization is available at its website www.zapworld.com.

Voltage Vehicles is a Sonoma County-based Nevada Corporation with exclusive distribution contracts for advanced transportation in the independent auto dealer network, including rights to one of the only full-performance electric cars certified under federal safety standards. The RAP Group owns an auto dealership focused on the independent automotive and advanced technology vehicle markets. A Voltage Vehicle authorized dealer, RAP showcases an array of advanced transportation at its dealership in Fulton, California.

"ZAP has one of the strongest brand names in the electric vehicle industry, and for our target market, branding is an important marketing tool," said Steve Schneider, President of Voltage Vehicles.

In other news this week, ZAP announced a partnership with Daka Development, a company specialized in innovative products for the alternative energy lifestyle. ZAP will distribute an array of new products for Daka, including a new water scooter design. Daka is partly owned by one of Britain's most famous inventors Sir Clive Sinclair whose innovations include pocket calculators, pocket TVs, personal computers and more.

Founded in 1994, publicly owned ZAP is best known for its patented ZAPPY® folding electric scooter that helped pioneer the market for electric motorized scooters in 1997. The Company develops and markets a range of advanced transportation vehicles, including bicycles, motorbikes and aquatic vehicles. For more information about ZAP, call 800-251-4555 or visit www.zapworld.com.