ZAP Announces 2005 Model Year Smart Cars Have Entered U.S.

Earlier this week, ZAP announced that a petition for import eligibility has been granted by the United States Department of Transportation for the 2005 Model Year "Smart Car Fortwo Coupe & Cabriolet."

SANTA ROSA, California (July 21, 2005) - ZAP (PCX:ZP), pioneering the next generation of advanced transportation and energy technologies, announced today that 2005 model year Smart Cars have entered the United States.

The 2005 Model Year Smart Cars are the first of the new models ZAP intends to Americanize and offer through its distribution network, specializing in fuel-efficient and advanced automotive technologies, according to ZAP CEO Steve Schneider.

"ZAP intends to offer the newest model year Smart Cars available to its customers," said Schneider. "The money and time spent on earlier model year cars have paved the way for ZAP and its import partners to federalize the newest models. The earlier models from our initial fleet are undergoing final processing now and will be distributed to authorized dealers that undergo our service and parts certification training."

Earlier this week, ZAP announced that a petition for import eligibility has been granted by the United States Department of Transportation for the 2005 Model Year "Smart Car Fortwo Coupe & Cabriolet."

ZAP recently announced the first deliveries of Smart Cars Americanized by ZAP to dealers in eight states as well as the beginning of its dealer service training and certification program. The Smart Car is the stylish, fuel-efficient micro-car from Europe, one of the only available in the country at a time of record gas prices.

About ZAP

ZAP, Zero Air Pollution(R), has been a leader in advanced transportation technologies and energy products since 1994. ZAP has a 10-year license on the technology developed by Smart-Automobile LLC to Americanize the popular European-made Smart Car for the U.S. marketplace. ZAP Americanizes the Smart Car to meet U.S. federal and state safety and emissions standards through registered importers. 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. ZAP purchases its vehicles from non-affiliated direct importer Smart-Automobile LLC. For more information, visit For investor-specific information, visit . To read or download the Company's Investor Fact Sheet, visit

Cautionary Statement

This press release contains forward-looking statements. 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 on 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.

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