ZAP to Unveil Electronic Cars at CES

    SEBASTOPOL, Calif.--Jan. 2, 2003--ZAP (OTC BB:ZAPZ), the Northern California pioneer in electric bicycles and scooters, will unveil a new ZAP brand of electronic automobile January 9 at the Consumer Electronics Show (CES) in Las Vegas, the world's largest consumer technologies event with more than 100,000 annual attendees from over 100 countries.
    ZAP says it will also be unveiling a new technology that appears to triple the performance of battery-powered automobiles.
    Voltage Vehicles, a subsidiary of ZAP, has signed an exclusive agreement with a European-based group of companies involved in the design and manufacturing of electric automobiles. The group has started production on several different types of light electric utility vehicles for urban transportation and commercial use. A representative from the European group, Riccardo Coles, says they are working with ZAP to launch their initial sales in North America.
    "We feel the timing for electric cars is now," said Coles. "There has never been more of a need throughout the world for clean transportation technologies. According to air quality studies, pure electrics are much more efficient and produce much less pollution than other technologies, including the new hybrids. We looked throughout the world for the best way to launch our new cars and decided that the USA is the right place and ZAP is the right company. We believe that ZAP has a recognizable brand in this industry and the right distribution strategy."
    Coles added that the group of companies he represents is forming a new car company that will focus on electronic propulsion technologies. All of the companies, says Coles, have experience in making traditional automobiles. One of them, Studio Linia 2 of Torino, Italy, has designed some of the most famous brands of Italian automobiles.
    Through its subsidiary Voltage Vehicles, ZAP is working to establish a distribution network for its electronic transport in the independent auto dealer market as well as ZAP Outlets for entrepreneurs. Voltage Vehicles has licensed for the distribution of vehicles from a number of different vehicle manufacturers.
    The first car available under the venture is a 25 MPH neighborhood electric car. The venture also includes freeway-capable cars, vans, pickups, and commercial vehicles. ZAP's new neighborhood car is a compact 2-door with climate controls and all the equipment and features of conventional automobiles. The car utilizes several innovations in electronic propulsion design and engineering. For example, the instrumentation for the car can be accessed via a control pad on the steering wheel.
    ZAP's announcement today includes plans for a new commercial vehicle that can be built in different configurations for use in construction, agriculture and excavation. One of the designs includes a backhoe and loader and Company officials say the new electric excavator offers a new experience compared to internal-combustion.
    "Eight hours on a quiet pollution-free backhoe with no engine vibration is like relaxing or playing an arcade game, not like work," said ZAP CEO Steve Schneider. "Electric drive technology is almost silent so it can eliminate noise restrictions and extend working hours to around-the-clock production. Whether in suburban areas or high density city locations, contractors can meet time sensitive deadlines without noise regulation."
    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.