SANTA ROSA, CA -- (Marketwire) -- 06/30/09 -- Electric transportation pioneer ZAP (OTCBB: ZAAP) president Gary Dodd and CEO Steven Schneider said today that they are encouraged by the U.S. Department of Energy's (DOE) announcement last week naming the initial three Advanced Technology Vehicles Manufacturing Loan Program (ATVMLP) recipients.

ZAP Motor Manufacturing Kentucky, the Kentucky-based company of which Dodd is CEO, has a $200 million application being actively processed by the ATVMLP staff. "We are very optimistic that our company will be among the companies to receive DOE funding," Dodd said. "We will build our assembly plant in Franklin, Kentucky. Argonne National Laboratory has announced it will locate its new battery R&D facility in Kentucky, and the National Alliance for Advanced Transportation Batteries, of which Zap Motors Manufacturing Kentucky is a member, has also announced it will build its battery manufacturing plant in Kentucky. Both facilities will be close to our plant site."

"Last week's announcement by Secretary of Energy Chu," according to Dodd, "signals the beginning of a new level of national commitment to the massive undertaking that lies ahead. The task involves an extensive transformation of America's personal and commercial transportation."

"Our country's objectives must be to dramatically reduce air pollution, improve fuel economy and release our nation from its dependency on foreign oil," Dodd continued. "This effort will include the re-tooling of existing automotive assembly plants in order to substantially improve the fuel economy of combustion engine vehicles, increase the production of hybrid and plug-in hybrid vehicles, and to support the ongoing research and development necessary for the inevitable widespread expansion of 100% electric vehicles through advanced battery and motor technologies."

"ZAP has been in the 100% plug-in electric vehicle business for 15 years," said Schneider. "In 2010, ZAP will offer extended range, rapid re-charge, 100% electric commuter vehicles and commercial trucks based on new battery, battery management system and wheel motor technologies that we've been developing during the past five years. ZAP will continue to offer its new line of vehicles in the $10,000 to $20,000 base price range, making electric vehicles practical and affordable for all American consumers."

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.

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.