2006 Auto Sales Zoom ZAP Past All of 2005

•Sales Exceed $5.5 Million Through May
•CEO Says Sales for First Five Months of 2006 Surpass All of 2005

SANTA ROSA, CA - June 13, 2006: Automotive pioneer ZAP announced that sales for the first five months of 2006 have surpassed all of 2005, primarily due to new automobile distribution, announced Chief Executive Officer Steve Schneider.

Schneider announced that sales for the first five months of 2006 have reached $5.5 million, surpassing sales of $3.6 million for all of 2005, noting the increase is due to the launch of ZAP's car division.

"Sales for the Smart Car Americanized by ZAP, over 200 so far, have already pushed first quarter revenues up 141 percent over the same period last year," said Schneider. "Our sales for the first five months of 2006 exceed sales for all of last year. In addition, we expect our new XEBRA electric vehicle to provide an additional source of revenue for the Company."

ZAP is delivering Smart Cars to its authorized dealers across the USA. The Smart Car is the most fuel-efficient, all-gas turbo in the country at 40 MPG and the only micro car available at a time of record gas prices. The Smart Car has received the regulatory approval through its registered importers to allow for distribution in the USA by ZAP.

ZAP is launching distribution for its new XEBRA electric vehicle and last week announced that it has over a half million-dollar backlog. A 100 percent electric vehicle, ZAP says that the XEBRA is designed to be a gas-free alternative for in-town driving.

ZAP is commencing auto sales through authorized and licensed ZAP dealers throughout the country. ZAP is seeking to expand its distribution through partnering with a select group of dealers marketing advanced technology vehicles. A publicly owned company based in Northern California, ZAP is also working to develop a new ethanol-powered micro car from Brazil.

About ZAP

ZAP has been a leader in advanced transportation technologies since 1994, delivering over 90,000 vehicles to consumers in more than 75 countries. ZAP is at the forefront of fuel-efficient transportation with new technologies including energy efficient gas systems, hydrogen, electric, fuel cell, ethanol, hybrid and other innovative power systems. 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.