Al Yousuf Group Provides a $10 Million Financing Arrangement for ZAP

SANTA ROSA, CA and DUBAI, UAE, Aug 05 (MARKET WIRE) --

Electric vehicle manufacturer ZAP (OTCBB: ZAAP) announced today that the
Al Yousuf Group, a Dubai-based conglomerate and investor, is providing a
$10 million financing arrangement to provide future working capital to
ZAP and help meet the growing demand for ZAP electric vehicles. The
financing arrangement allows for advances by ZAP over the next few years.

ZAP says that orders for its full line of electric vehicles have been
increasing and ZAP's business plan of setting up dealers is growing. A
year ago, ZAP had about 20 automotive dealers, a number that has risen to
50 today. The Company has been expanding its scooter sales and has sold to
almost 70 scooter and bicycle dealers in the past year. ZAP added that
demand for dealerships is growing in the US and abroad and expects the
Company to add a significant number of dealers and distributors over the
next 12 months.

"This is the opportunity of a lifetime for ZAP and we are ready to seize
the moment," said ZAP Chairman Eqbal Al Yousuf, who is President of the Al
Yousuf Group, one of the largest distributors of automobiles in the Middle
East.

ZAP introduced the Xebra in June of 2006. The designers of the Xebra said
that because electric vehicles are different than gas they required a
different approach. The main goals with the Xebra were to be practical,
affordable and, mostly, available in an era of record gas prices when few
electric alternatives exist. The vehicle is designed for in-town driving
at speeds up to 40 MPH and can recharge at any normal outlet like a cell
phone. Many Xebra owners say it costs about 50 cents to fuel up where gas
cars fill up for $50 or more. The Xebra is manufactured in China so that
the vehicles can be made affordable on a global basis.

ZAP believes another reason the Xebra is growing in popularity is because
families are demanding more economical cars. Rather than buy a brand new
gas car on a tight budget, many multi-car families are opting for a new
Xebra to handle all those short trips around town while saving
wear-and-tear on their older gasoline model. Business fleets have also
been trying out the vehicles, including Domino's Pizza, UPS, Coca-Cola, El
Pollo Loco and many more. City and county fleets have also started adding
ZAP vehicles to their fleets.

About ZAP

ZAP has been a leader in advanced transportation technologies since 1994,
delivering over 100,000 vehicles to consumers in more than 75 countries.
ZAP is positioning its business plan at the forefront of fuel-efficient
transportation with new technologies including energy efficient gas
systems, electric, hybrid and other innovative power systems. ZAP has a
joint venture called Detroit Electric to manufacture electric and hybrid
vehicles with Youngman Automotive Group. Detroit Electric is developing a
freeway capable electric vehicle called the ZAP Alias. The venture has
future plans however they are dependent upon both parties receiving
outside financing. ZAP is also developing a new generation of vehicles
using lithium batteries. The Company recently announced a strategic
partnership with Dubai-based Al Yousuf Group to expand its international
vehicle distribution. ZAP also makes an innovative, new portable energy
technology that manages power for mobile electronics from cell phones to
laptops. For product, dealer and investor information, visit
http://www.zapworld.com.

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 upon
third-party suppliers, intellectual property rights, and other risks.

Contact:
Alex Campbell
ZAP
707-525-8658 x 241
acampbell@zapworld.com

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