Press Release

Integrity Automotive Completes Application for Advanced Technology Vehicles Manufacturing Loan From the U.S. Department of Energy

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Posted 08 January 2009 @ 07:33 pm ET

SHEPHERDSVILLE, KY -- (Marketwire) -- 01/08/09 -- Integrity Automotive, LLC along withelectric vehicle partner ZAP (OTCBB: ZAAP) announced today importantprogress in the Kentucky company's plan to manufacture all-electricvehicles. Integrity has completed its application for a $200 million loanfrom the U.S. Department of Energy's (DOE) Advanced Technology VehiclesManufacturing Loan Program.

"These are major steps forward in our effort to make Kentucky the firststate in the nation to manufacture all-electric vehicles," said Randall S.Waldman, Integrity Automotive's Chief Executive Officer. "We are veryoptimistic that the new DOE Advanced Technology Vehicles loan program willprovide the capital needed to begin production of ZAP all-electric cars andtrucks here in Kentucky later this year."

"The Small Business Administration says that up to 80 percent of new jobsin America are created by small businesses," said ZAP CEO Steve Schneider."As a US company ZAP contracted offshore manufacturing to meet its businessgoals of affordable electric vehicles and we hope the US government willrecognize our efforts to create new jobs at home."

In a speech today, President-elect Obama said: "To finally spark thecreation of a clean energy economy... we will put Americans to work in newjobs that pay well and can't be outsourced -- jobs building solar panelsand wind turbines; constructing fuel-efficient cars and buildings; anddeveloping the new energy technologies that will lead to even more jobs,more savings, and a cleaner, safer planet in the bargain."

Kentucky state government last year approved economic developmentincentives for Integrity Automotive, and issued a new regulation making ZAPelectric vehicles legal for use on limited access Kentucky highways.Franklin and Simpson County, Kentucky, officials reached an agreement withIntegrity last year to locate the automaker's Kentucky manufacturingfacility at a 270-acre site there.

"We are confident that we meet all of the criteria for funding under DOE'sAdvanced Technology Vehicles loan program," said Gary Dodd, President ofIntegrity Automotive. "We will be ready to utilize the federal loan fundsrapidly when they are approved by the Department of Energy. We arecommitted to bringing electric-vehicle manufacturing jobs to Kentucky, andare poised to begin an exciting new chapter in our state's economicdevelopment."

Integrity Automotive, LLC, (www.integritymotives.com) is a privately heldKentucky company headquartered in Shepherdsville, Kentucky, outsideLouisville. It will solely own and operate its future electric-vehiclemanufacturing facility in Franklin, Kentucky. Integrity has an exclusiveworldwide manufacturing agreement with ZAP of Santa Rosa, California(www.zapworld.com), to build ZAP electric vehicles and other fuel-efficienttransportation products at the new Franklin, Kentucky facility, subject tocertain terms and conditions. Integrity's Franklin plant is projected toproduce over 100,000 vehicles annually and employ up to 4,000 people.

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.

Contact:Integrity ManufacturingFrank Jemley502.296.4499frankj@atticusventures.comZAPAlex Campbell707-525-8658 x 241acampbell@zapworld.com


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