ZAP Announces Record Sales, Ships 15,000th Electric Bike

2 September 1998

ZAP Announces Record Sales, Ships 15,000th Electric Bike

    SEBASTOPOL, Calif.--Sept. 2, 1998--Electric vehicle manufacturer ZAP Power Systems (OTC BB:ZAPP) today reported record sales for the month of July.
    The company's sales for July 1998 were up 181 percent to $575,632 from $204,619 for the same period last year. The rise is attributed to increased demand for the company's line of electric bicycles and bicycle motor kits, shipments of its new ZAPPY (tm) folding electric scooter introduced in March 1998, and increased demand from its Southeast Asia distributors.
    Sales for the month of July were also the best in company history and 31 percent over June's record-setting sales of $439,144.
    While auto makers General Motors Corp. , Ford Motor company , and Chrysler Corporation have each only shipped a few hundred electric vehicles, ZAP announced that it has reached another milestone, having shipped its 15,000th electric vehicle since its incorporation in 1994.
    One of ZAP's distributors, CSW Total EV, an unregulated Central and South West Corporation business line, also recently announced they have received authority from the Securities and Exchange Commission to market ZAP's electric bicycles and electric scooters in an eight state region of the United States.
    ZAP sells electric bikes and scooters through its Web site, http://www.zapbikes. com, franchise electric vehicle outlet stores, and distributors worldwide.

    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.