Cash for Clunkers Available on ZAP Electric Car

* Reuters is not responsible for the content in this press release.

Thu Jul 30, 2009 9:00am EDT

  SANTA ROSA, CA, Jul 30 (MARKET WIRE) -- 
Electric car pioneer ZAP (OTCBB: ZAAP) is participating in its own "Cash
for Clunkers" program with up to $4,500 in sales incentives and tax
credits on top of the savings over the lifetime of the vehicle, not to
mention 90 percent fewer carbon emissions.

    ZAP says it can offer up to $3,300 trade-in allowance towards a ZAP Xebra
Sedan for qualifying gas vehicle trade-ins at its Voltage Vehicles
dealership in Santa Rosa, California. On top of that, Xebra buyers qualify
for a 10 percent Tax Credit based on the full purchase price. Only 100
Xebra sedans will be eligible for the incentive program. The offer matches
the $3,500 to $4,500 saving from the US government, but expect an electric
vehicle to save much more over its lifetime and provide more environmental
benefits. Trade-in vehicles must have a clear title. ZAP's "Cash for
Clunkers" program is good until November 1, 2009 and good only at
participating dealers.

    "ZAP electric cars get about 150 miles per gallon, so on a fuel cost basis
alone they can save 7 times more than the fuel economy program offered by
the government, plus we can offer a competitive rebate," said Schneider.
"At the same time, electric cars will reduce CO2 emissions by about 75
percent over the average trade-in under the federal Cash for Clunkers
program."

    Schneider cited studies that an electric car reduces CO2 emissions by more
than 90 percent compared to a gas car, so in place of a gas car he
estimates an electric car can eliminate roughly 10,000 pounds of CO2 from
a drivers' carbon footprint annually. On top of the point-of-sale
incentives, electric car drivers can expect to save as much as $1,000 a
year on fuel costs. Electric car owners can save even more with the
elimination of oil changes, smog checks, parts replacements and other
routine maintenance.

    Called the Consumer Assistance Recycle and Save Act of 2009, or more
commonly "Cash for Clunkers" or "Cash for Guzzlers," the $1 billion
federal program will provide a voucher of up to $4,500 to help offset the
cost of new car purchases or leases over the next five months. New
passenger cars will qualify under the program only if they have a fuel
economy of at least 22 MPG. If the new model gets four more miles to the
gallon than the old car, you qualify for the $3,500 credit.

    About ZAP

    ZAP has been a leader in electric transportation since 1994, delivering
over one hundred thousand vehicles to consumers in more than seventy-five
countries. ZAP manufactures a line of electric vehicles, including
electric city-cars and trucks, motorcycles, scooters, 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
www.zapworld.com.

    Forward-Looking 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 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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