ZAP Acquires Smart Car DOT Intellectual Property from Smart Automobile LLC.

SANTA ROSA, Calif. -- Automotive pioneer ZAP (NYSE Arca:ZP) announced today that it has reached an agreement to acquire all ownership interest from Smart Automobile LLC for the intellectual property that helped engineer the Smart Car Americanized for ZAP to meet U.S. Department of Transportation (DOT) compliance.

Previously ZAP had a license agreement with Smart Automobile and the new agreement reached takes the place of previous agreements granting ZAP full ownership in the DOT rights. ZAP acquires all intellectual property owned by Smart Automobile which makes the Smart Car DOT compliant, including all testing related to various crash and engineering, analyses, tests performed by Smart Automobile and those contracted out to third parties, as well as all physical assets, including molds, tooling and parts.

Smart-Automobiles LLC is an independent, privately-held company that oversees the direct importation and modification of automobiles to meet U.S. standards.

The Smart Car has received regulatory approvals through its registered importers to allow for distribution in the USA by ZAP. ZAP is now distributing the Smart Car, a fuel-efficient all-gas turbo car, in the USA through a new automotive dealer network specializing in advanced technology vehicles.

ZAP recently launched sales for a new electric car called the XEBRA and previously announced a partnership with Brazilian manufacturer OBVIO! for the manufacture and distribution of cars utilizing ethanol and other technologies for the U.S. market.

A publicly owned company based in Northern California, ZAP's mission is to establish an automotive company that manufactures and distributes advanced technology vehicles that offer economic, environmental and sustainable benefits over currently available modes of transportation

About ZAP

ZAP has been a leader in advanced transportation technologies since 1994, delivering over 90,000 vehicles to consumers in more than 75 countries. ZAP is 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. The Smart Car Americanized by ZAP currently complies with regulatory requirements in all states except California and four other states. ZAP is not affiliated with, or authorized by, smart gmbh, the manufacturer of Smart automobiles, or the smartUSA division of Mercedes-Benz LLC, the exclusive authorized U.S. importer and distributor of those vehicles. For more information, visit http://www.zapworld.com.

Forward Looking Statements

Statements in this press release that relate to future plans or projected results of ZAP are 'forward-looking statements' within the meaning of Section 27A of the Securities Act of 1933, as amended by the Private Securities Litigation Reform Act of 1995 (the "PSLRA"), and Section 21E of the Securities Exchange Act of 1934, as amended by the PSLRA, and all such statements fall under the 'safe harbor' provisions of the PSLRA. ZAP's actual results may vary materially from those described in any 'forward-looking statement' due to, among other possible reasons, the continued acceptance of ZAP's products, increased levels of competition, new products and technological changes, ZAP's dependence on third-party suppliers, intellectual property rights, and the realization of any of the other risks described in ZAP's Annual Report on Form 10-KSB, or in any of ZAP's other filings with the Securities and Exchange Commission. Readers of this press release are cautioned not to put undue reliance on forward looking statements.