Bill Expands Federal Electric Car Tax Credit

SANTA ROSA, CA, Feb 04 (MARKET WIRE) --
US electric vehicle developers like ZAP (OTCBB: ZAAP) of Santa Rosa,
California, are asking Americans to join in supporting a new bill that
would give more tax credits to more kinds of electric vehicles.

The new legislation, S271, would increase the number of plug-in vehicles
able to receive the tax credits from 250,000 to 500,000. The tax credits
would expand beyond conventional four-wheel automobiles to include
three-wheel and two-wheel vehicles, as well as low-speed neighborhood
electric cars. Electric vehicles like ZAP's Alias and others would receive
a tax credit equal to a percentage of the purchase price up to $4,000.

Called the FREEDOM Act of 2009, bill S271, would revise the 1986 Internal
Revenue Code providing tax credits for the manufacture, conversion and
acquisition of plug-in electric vehicles. It builds on legislation
authored by Senate Finance Committee members Maria Cantwell (D-WA) and
Orrin Hatch (R-UT). Along with former Senator Barack Obama (D-IL), they
introduced the law in 2007 that provided up to $7,500 for consumers
buying new plug-in electric vehicles. This bill was enacted into law last
October as part of the Energy Bill of 2007.

ZAP Founder Gary Starr recently provided input in Washington for these
incentives, saying that more tax credits would jump-start the electric
vehicle industry, create more jobs and lessen dependence on foreign oil.
Starr has been an advocate for electric vehicles since the 1970s, and has
assisted in creating electric vehicle legislation on the federal, state
and local level for over 20 years.

"Back in the 1970s Jimmy Carter said America's reliance on imported oil
was the moral equivalent of war; and later he went on to help create the
US Department of Energy," said Starr. "This idea has lost its way over the
years because back then 30 percent of our oil was imported; today more
than 60 percent is imported and rising. With President Obama's support
and the support of Congress, we can renew this commitment."

Starr added: "There are many smaller automakers that are making plug-in
transportation today and these tax incentives would allow Americans to
jump-start the adoption of electrics immediately. The Small Business
Administration says up to 80 percent of new jobs in America are created by
small business and 90 percent of all innovation is created by
entrepreneurs. It is critical that Congress supports more automotive
innovation in the US and we ask Americans to urge their Federal
representative to move quickly to pass this legislation and make it go
into effect immediately."

About ZAP

ZAP has been a leader in electric transportation since 1994, delivering
over 100,000 vehicles to consumers in more than 75 countries. ZAP
manufactures a line of electric vehicles, including electric city-cars and
trucks, motorcycles, scooters, bicycles, and ATVs. ZAP sells some of the
only electric city-speed cars, trucks and vans in production today and is
developing a freeway capable electric vehicle called the ZAP Alias. 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
detailed from time to time in the Company's periodic reports filed with
the Securities and Exchange Commission.

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Contact:
Alex Campbell
ZAP Media Relations
707-525-8658 ext. 241
acampbell@zapworld.com

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