Lotus Engineering to Develop Innovative Microsports Cars for Obvio! - A new Brazilian OEM.

RIO DE JANEIRO, Brazil -- British automotive engineering consultancy, Lotus Engineering, has been selected by Obvio! Automotoveiculos S.A., based in Rio de Janeiro, to develop two 'trybrid' high-performance microsports cars for markets across the globe, in a deal potentially worth over PS70 million.

The lightweight urban microsports cars, designated 828 and 012, are the first products for the new Brazilian OEM. The full engineering programme will include the development of an advanced vehicle safety structure based on aerospace technology, the integration of 'trybrid' engines that will run on gasoline, bio-ethanol or natural gas, and other powertrain variants.

Ricardo Machado, Chief Executive, Obvio!, said: "Lotus Engineering was a clear first choice as our engineering consultancy. It has an impressive track record in managing complex engineering projects and in developing exciting, efficient cars; its wide range of expertise will be invaluable to us. We will now move forward together at a fast pace to bring these high performance 'ultra-safe urban microsports cars' to the US, European and Japanese markets."

Mike Kimberley, Chief Executive, Group Lotus, said: "I am delighted that Lotus Engineering has been selected by Obvio! to deliver the entire design and development programme for these ground-breaking cars. Lotus Engineering has a very strong heritage in developing innovative solutions for clients and we look forward to working with Obvio! in what we believe will be a radical new approach from a dynamic new automotive player."

Lotus Engineering will work with a range of Brazilian 'supplier partners' to develop two variants of the new chassis concept which will be engineered incorporating Niess Elliptical Survival Rings, already well-proven in the aerospace industry. Providing exceptional chassis performance as well as class-leading safety, the concept also allows for very light structures - target weight for the 012 is 750kgs (1,648 lbs) and for the 828 is 600kgs (1,318 lbs). This will enable the vehicles to feature exceptionally good performance characteristics while also running with highly efficient and economical power plants.

Obvio! is committed to ensuring its highly distinctive and innovative new models are fun to drive and are practical for everyday use. They are configured with the driver and two passengers sitting three-abreast and also feature scissor-opening doors to aid access and parking in tight spaces.

Initially, power will come from a 1.6-litre unit produced by Brazilian engine manufacturer Tritec Motors. Lotus Engineering will develop a new engine management unit, which will give the engine "trybrid" capabilities, running automatically on natural gas, bio-ethanol or gasoline. In parallel, Lotus will develop 170hp and 250hp turbocharged variants for higher performance models in the Obvio! range. Electrically-powered variants of both cars are expected to follow shortly after the trybrid models.

Obvio! has already signed a US$700m contract to supply a total of 50,000 units per annum, spread between the 012 and 828 models, to its exclusive North American distributor, California-based ZAP - Zero Air Pollution (OTCBB:ZAAP). Distributors for other major world markets will be appointed over the next 18 months. The Brazilian firm has committed to exceeding all worldwide safety regulations for passenger cars, while exciting performance will be achieved through an impressive power-to-weight ratio and class-leading driving dynamics.

A core Obvio!-Lotus engineering management team will be based in a dedicated project centre at Lotus' Hethel headquarters. It will manage the engineering programme for the two vehicles, which will be delivered by Lotus Engineering facilities worldwide and for the first time by a group of high-profile Brazilian-based tier one suppliers who will be heavily involved from the very earliest stages. The two vehicles will be built in Brazil, with production expected to start late in 2008.

Mr. Kimberley concluded: "This agreement means a great deal to us - not only are we delivering a very strong technical offering but we will once again have the opportunity to 'connect' our iconic Lotus brand to Brazil. Three of the country's most famous sports personalities, Emerson Fittipaldi, Nelson Piquet and Ayrton Senna, played a major role in helping Team Lotus to win 79 Grands Prix and seven Constructors' Championships in Formula One. With this heritage behind us, we are proud to be able to play a leading role in the development of the Brazilian car industry."

Notes to Editors:

About Lotus Engineering

Lotus Engineering provides comprehensive and versatile consultancy services to many of the world's OEMs and Tier 1 suppliers, offering a full engineering service from initial concept and project design through development to full production prototype build. This includes third party "niche vehicle" engineering and manufacture worldwide.

Lotus Engineering's expertise in engineering high performance lightweight sports cars has been exploited by OEMs around the world. Lotus Engineering is working on a range of alternative fuel projects for various clients and recently developed a bio-ethanol fuelled Lotus Exige 265E concept car for sister company Lotus Cars.

About OBVIO!

OBVIO! Automotoveiculos S.A. is a new developer and manufacturer of high-safety, high-performance automobiles in Rio de Janeiro, Brazil. OBVIO! has assembled a network of strong suppliers to incorporate the latest advances in automotive engineering into a new generation of automobiles that meet the challenges of today's urban driving environment. OBVIO! is setting up a manufacturing facility in Xerem at Duque de Caxias city, in Rio de Janeiro, to run on a 100% outsourcing model. OBVIO! cars incorporate many state-of-the-art composite technologies, materials and features for urban cars that are fun, safe and fuel efficient.

For more information, visit http://www.obviousa.com.

Basic Vehicle requirements / specifications:
Aluminium Structure - Composite Body Panels
Left Hand Drive and Right Hand Drive configurations
Seating 3 across car - bench type seat
2 - door 'Scissor' design
Mid - rear Transverse engine Rear Wheel Drive
Engine (base 828 model):
-- Tritec I4, 1.6L (CVT Transmission) other variants to be decided
-- Trybrid Full-flex engine, from 100% ethanol to 100% gasoline -
optimised for E85 - and NCG - Natural Compressed Gas
Target vehicle dimensions(mm) for 828 (012 in brackets):
-- Length 2650 mm (3200 mm)
-- Width 1650 mm (1800 mm)
-- Height 1500 mm
The structure and systems strategy is to maximise commonality.
Electric variants of the 828 and 012 models.