Electric Car Leader ZAP Plugs Into Europe; ZAP CEO in Talks With High Level Auto Execs.

LONDON -- Recognizing Zero Air Pollution as the way of the future, some of the world's top automobile manufacturers, distributors and engineering companies have invited ZAP (NYSE Arca:ZP) and its Chief Executive Officer, Steven Schneider, to Europe to discuss potential financial and strategic

According to CEO Schneider, "With large car and gas-dependent automakers closing plants, gas prices soaring and growing public awareness of the need to switch to alternative energy, ZAP's global market position is stronger than ever. We hope to forge partnerships with some of the automotive industry's most respected companies."

Attending some meetings with Schneider will be president of Brazilian Automaker OBVIO !, Ricardo Machado. ZAP and OBVIO ! have solidified a strategic partnership to develop and distribute new OBVIO ! cars worldwide. The OBVIO ! 828 and 012 models are high performance micro sport cars. They will run at any percentage of ethanol/gas mixture or pure ethanol and both models will also come in an electrical version.

According to OBVIO ! President, Machado, "In Brazil, we recently won the support of the Rio de Janeiro government that will help ensure we break sales records. We expect to create four thousand new jobs and boost Brazil's economic infrastructure. We hope to parlay this great business plan by bringing on European partners as well."

ZAP is seeking the best advanced technology vehicles to compliment its line of micro cars. Strong relationships with automakers and distributors in Asia and South America are credited with assisting record sales. The first six months of 2006 have surpassed revenues for all of 2005. Second quarter revenues showed a 376 percent increase over the same period a year ago.

About ZAP

ZAP stands for Zero Air Pollution. Its mission is to be the leading distribution portal of socially responsible and environmentally sustainable, advanced technology vehicles. ZAP is a pioneer at the forefront of electric and other fuel efficient transportation and believes that helping our stakeholders act responsibly, both with regards to our environment and the oil crisis, can go hand-in-hand with generating appropriate returns on our investments. The Smart Car Americanized for ZAP currently complies with regulatory requirements in all states except California and four other states. ZAP is not affiliated with, or authorized by, smart gmbh, the manufacturer of Smart automobiles, or the smartUSA division of Mercedes-Benz LLC, the exclusive authorized U.S. importer and distributor of those vehicles. For more information, visit http://www.zapworld.com.

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.