"The incentives range from free parking for electric cars withinMontevideo, the capital of Uruguay, to no tolls on roads or bridges and noregistration for three years," said Fernando Cancela of ZAP Latin America.

Montevideo mayor Ricardo Ehrlich, a biologist, wants to make the capital ofUruguay the electric car capital of the world. Last month, as a way to helpUruguay invest in new technologies and industries, Ehrlich supported aproject to set aside land for a proposed ZAP electric vehicle assemblyplant. Electric vehicles assembled under the program would qualify fortax-free exportation throughout South America's MERCOSUR trade zone.

ZAP Latin America, based in Montevideo, Uruguay, is starting to sell Zapinoand Zappy3 scooters as well as electric bicycles and plans to begin sellingelectric cars and trucks under the new incentive plan in Uruguay.

ZAP currently employs seven workers in Uruguay with a retail store andsmall manufacturing and distribution facility for electric bicycles andscooters. ZAP runs a seasonal rental outlet in Punta del Este, a beachresort destination on the Atlantic where it will rent electric scooters,bicycles and showcase the ZAP Xebra.

More governments are working to provide incentives for electric cars. InCalifornia owners of qualified Xebra electric city cars and trucks canreceive a $1,000 tax credit.

About ZAP

ZAP has been a leader in electric transportation since 1994, deliveringover 100,000 vehicles to consumers in more than 75 countries. Currently,ZAP manufactures a line of electric vehicles, including electric city-carsand trucks, motorcycles, scooters, bicycles, and ATVs. ZAP sells one of theonly electric city-cars and trucks in production today and is developing ahigh-performance electric vehicle called the ZAP Alias. The Companyrecently announced a strategic partnership with Dubai-based Al Yousuf Groupto expand its international vehicle distribution. For product, dealer andinvestor information, visit http://www.zapworld.com.

This press release contains forward-looking statements. Investors arecautioned that such forward-looking statements involve risks anduncertainties, including, without limitation, continued acceptance of theCompany's products, increased levels of competition for the Company, newproducts and technological changes, the Company's dependence uponthird-party suppliers, intellectual property rights, and other risksdetailed from time to time in the Company's periodic reports filed with theSecurities and Exchange Commission.

ZAP USA Media RelationsAlex Campbell707-525-8658 ext. 241acampbell@zapworld.comZAP Latin AmericaFernando Cancela707-525-8658 x 205fcancela@zapworld.com