SOURCE: ZAP

June 02, 2008 06:00 ET

ZAP Acquires Interest in Electric Wheel Motor Company

SANTA ROSA, CA--(Marketwire - June 2, 2008) - Electric transportation pioneer ZAP (OTCBB: ZAAP) announced today that it has acquired an ownership interest in an electric motor company to develop and manufacture a new line of wheel motors for future vehicle developments and global distribution.

Under the agreement, ZAP is collaborating and investing in the development of a line of wheel motors for various types of electric vehicles, from an electric bike or scooter to an electric car. ZAP and its partner have also agreed to work together on the optimum process for manufacturing all motors and controllers. ZAP has been granted exclusive rights to the wheel motors under the agreement for international distribution.

"So many have focused on batteries as a way to improve the performance of electric vehicles, but wheel motors are truly a giant leap forward," said Gary Starr, who manages product development for ZAP. "Today's ZAP wheel motor vehicles can nearly double the range of similar vehicles we brought to market ten years ago."

ZAP and their partner expect to increase the power, performance and efficiency of wheel motors through the use of a proprietary, brushless, multi-pole wheel-motor technology. ZAP is developing a 7000-watt wheel motor for larger vehicle applications.

ZAP was one of the first electric vehicle companies to market wheel motor powered vehicles with its ZAPPY3 electric scooter, which uses a 350-watt motor. Last year, ZAP introduced the Zapino scooter with its 3000-watt wheel motor, which ZAP says is one of the most powerful systems available on the market today.

Wheel motors can significantly increase the power-to-weight ratio of electric drivetrains. Having motors built into the wheels decreases the weight, eliminates the transmission, and saves space inside the vehicle for more battery capacity and features. Eliminating a chain or belt transmission increases the efficiency and can result in less noise, vibration and overall maintenance.

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, 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. 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 detailed from time to time in the Company's periodic reports filed with the Securities and Exchange Commission.