SOURCE: ZAP

January 23, 2008 07:00 ET

Coca-Cola Rolls Out New Distribution Model With ZAP

Small, Efficient ZAP Trucks Save Time and Money on Urban Deliveries

MONTEVIDEO, URUGUAY and SANTA ROSA, CA--(Marketwire - January 23, 2008) - The Coca-Cola Company and alternative transportation pioneer ZAP (OTCBB: ZAAP) announced a project to use 30 of its compact trucks for a new beverage distribution system in Montevideo, Uruguay.

Officials from Coca-Cola subsidiary Montevideo Refrescos SRL (Monresa) and ZAP say that they are testing new efficient motors as part of the project, and if it is successful, they might expand to large cities around the world where rising gas prices, traffic congestion, pollution and parking shortages restrict the use of large delivery trucks. Officials say that the new distribution model using these trucks averages about one-fifth the fuel consumption of the former model.

"We want to create an alternative way for goods and services to be transported in urban areas," said ZAP Director of International Affairs Fernando Cancela. "Urban deliveries are becoming more and more challenging with traffic congestion and parking shortages. These ZAP Xebras will help Coca-Cola create a new distribution system that will be better for our cities as well as for their bottom line."

Recently Coca-Cola announced a pledge to the environment as part of its policy of corporate social responsibility. As a beverage company, they will focus on three areas of great impact: water use; packaging; and energy use and climate protection. Jorge Apesetche, Distribution Manager for Monresa (Uruguay) says this project with ZAP is the kind of initiative Coca-Cola wants to make to do their part.

"Our commitment is not just good corporate responsibility; it's good business," said Apesetche. "The bottom line is that our business depends on the health and sustainability of our planet and the natural resources that we all share. ZAP Xebras will help improve our distribution operations, save money, time and the environment."

Coca-Cola subsidiary Monresa has received the initial order for 30 ZAP Xebras and is now placing them into service delivering beverages throughout Montevideo, the capital of Uruguay. The ZAP Xebras will be incorporated into a mobile distribution hub model where larger delivery trucks would no longer be used throughout the city, but would transfer beverages into ZAP trucks at distribution hubs. Modified with enclosed, lockable beds, the ZAP Xebras will navigate the more narrow, inner-city streets, making deliveries to smaller retail locations. Because the ZAP trucks will operate more easily in this environment, officials from Coca-Cola say their drivers can deliver vehicles and collect payment at the same time, whereas collections were not practical with the larger trucks.

Coca-Cola's distribution model is similar to the one used recently by United Parcel Service (UPS) in Northern California where a fleet of 42 ZAP trucks and sedans were used to expand small parcel deliveries during peak holiday demand. UPS delivery vans transferred smaller packages to a locked storage unit, then a Xebra transports the packages into dense urban and residential areas where parking and traffic are easier for the smaller vehicles.

ZAP is expanding the distribution for the Xebra worldwide as part of a strategic partnership with Shandong Jindalu vehicle company of China. ZAP is now distributing the cars and trucks designed for city-speed transportation. ZAP recently formed a joint venture with one of China's newest car companies, Youngman Automotive Group, to manufacture electric and hybrid cars, buses and trucks.

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. 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 has a joint venture to manufacture electric and hybrid vehicles with Youngman Automotive Group, one of China's leading manufacturers of buses and trucks. ZAP is developing a high-performance crossover SUV electric car concept called ZAP-X engineered by Lotus Engineering. ZAP is also developing a new generation of vehicles using advanced nanotech batteries with Advanced Battery Technologies. 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.

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.