ZAP Issues One Billion Dollar Purchase Order to DaimlerChrysler Group for Smart Cars; ZAP Discloses Ongoing Discussions with Manufacturer of Smart Car in Europ

Several fuel cell powered Sprinter Vans also are currently being
used in day-to-day delivery operations with dispatching companies in the
United States and Germany.

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auto
dealers, and continues to receive more as a result of its marketing
efforts.

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states.-compliant
condition.S.com/tcp/zap/factsheet .

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Schneider
has confirmed that ZAP has been in discussions with smart GmbH, a
Company of DaimlerChrysler Group, which included a meeting in
Stuttgart, Germany, with smart GmbH officers to explore the
possibility of working together to fill U. To read or
download the Company's Investor Fact Sheet visit
http: //www. 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 on 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.

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Business Editors/Energy Editors/Transportation Writers

SANTA ROSA, Calif. To build sufficient
capacity to supply the full U. marketplace.com. The city buses alone have already covered more than
300,000 miles (500,000 km) and transported more than two million passengers,
who have been convinced by the advantages of this quiet, emission-free
technology. The aim is to reduce fuel consumption and
exhaust emissions, while at the same time enhancing driving pleasure, power
development and comfort.

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DaimlerChrysler Unveils New Fuel Cell Vehicle in Geneva

"With this car, we are continuing our highly successful practical tests on
an even larger scale," said Dr.

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This involves
optimization of the vehicles and their components, the establishment of an
infrastructure, and the increased acceptance of hydrogen technology among
drivers and passengers.

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S. ZAP says that its business model of creating an advanced
transportation dealer network has been helped recently by rising gas
prices and the demand for more fuel-efficient cars.
ZAP placed the purchase order directly to the DaimlerChrysler Group in
an effort to expedite delivery of U. demand, the Company has been in
discussions with a number of major automotive industry leaders in
Europe and Asia that have direct experience in the manufacture and
sales of high-efficiency vehicles. 180 patent applications in the field of fuel cell
technology underscore the pioneering achievements of DaimlerChrysler.
The fuel cell is the key technology for emission-free driving of the
future and is the long-term objective of DaimlerChrysler's five -stage Energy
for the Future roadmap. DaimlerChrysler is continuing to optimize the
internal combustion engine, since the potential of gasoline and diesel engines
has by no means been exhausted.

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The new F-Cell, built on the Mercedes-
Benz B-Class, is extending the family of fuel cell vehicles to the segment of
sports tourers. Partnerships are an important part of fuel cell technology
development . DaimlerChrysler
and BP, partners in the Department of Energy's fuel cell vehicle and
infrastructure validation program, recently dedicated the first hydrogen
station in the plan. Hybrid drive is a significant
interim solution along the road to emission-free mobility with the fuel cell.

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Delivery of the Smart Cars represented by the current level of
purchase orders is conditional upon ZAP's execution of strategic
relationships with major automotive manufacturing partners that will
enable it to support the full sales pipeline.
In order to focus expertise and resources, and to press ahead with the
development of the fuel cell, DaimlerChrysler has entered into a strategic
alliance with Ford Motor Company and the fuel cell specialist Ballard Power
Systems.

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ZAP CEO Steve Schneider said the $1 billion purchase order was
placed in response to an inquiry from smart GmbH, a Company of the
DaimlerChrysler Group, which was first made in March. compliant Smart Cars to
consumers . ZAP is still waiting for confirmation that smart GmbH will
fulfill the purchase order.com/tcp/zap . These vehicles must prove their worth in the most varied of
climatic conditions.

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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. The size and weight of the drive system have
been considerably reduced, while the performance and reliability have been
steadily enhanced.

Automotive is defined as vehicles that are self powered such as cars, trucks, racing cars, snowmobiles and motorcycles.

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Excluded are California and four other states
that follow different emissions testing procedures, which are not yet
completed. Mr. These partnerships and the common goal will propel fuel
cell transportation to maturity.

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S. to fill this
demand, including discussions involving cooperation with other
automobile manufacturers.S.S.
ZAP has not agreed to accept all Smart Car purchase orders at this
time.
Thanks to a reduction in fuel consumption and a further enhanced storage
capacity , the operating range has now been increased to almost 250 miles
(400 km).
Since late 2004 , 60 Mercedes-Benz F-Cell's have been in operation with
customers in the United States, Germany, Japan and Singapore. Moreover, the fuel cell has an efficiency factor approximately twice
that of the internal combustion engine.

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ZAP owns
the technology developed by Smart-Automobile LLC to Americanize the
popular European-made Smart Car for the U. For investor-specific
information, visit http: //www.

This category will list the companies that manufacture and support the manufacture of automotive products.

trasco daimlerchrysler

ZAP reported that it has received over $1 billion in advance
purchase orders for the Smart Car Americanized by ZAP from U. ZAP is currently in discussions with a number of potential
partners to meet the strong American demand for the Smart Car. Once ZAP finalizes the required
strategic partnerships and has approval from all government agencies,
it will determine its delivery schedule for Smart cars in the United
States. - The new F-Cell is extending the family of fuel cell vehicles from
DaimlerChrysler
- More than ten years of the automotive fuel cell: DaimlerChrysler , the
pioneer, is pressing ahead with development
- The concept of the Compact Sports Tourer with sandwich floor is
predestined for emission-free fuel cell drive

GENEVA , At the 2005 Geneva Motor Show,
DaimlerChrysler, the pioneer of fuel cell drive, is presenting the next
generation of its fuel cell vehicles. DaimlerChrysler is also committed to optimizing fuel
quality worldwide and is supporting the fuel evolution from crude oil to
largely CO2-neutral fuels derived from biomass.

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ZAP recently
announced that a model of the Smart ForTwo Coupe had received full
regulatory approval from the federal government, clearing the way for
sale in 45 U. importer
and distributor of those vehicles. For more
information, visit http://www.
In 2003, DaimlerChrysler launched the world's most extensive series of
practical tests for the fuel cell in cars, vans and regular service buses.

daimlerchrysler jurgen

About ZAP

ZAP, Zero Air Pollution(R), has been a leader in advanced
transportation technologies and energy products since 1994.trilogy-capital.

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ZAP has been
evaluating a number of ways to expand its efforts to bring the Smart
Car and other energy-efficient automobiles to the U.S.trilogy-capital. With
the Mercedes-Benz B-Class F-Cell, a further significant milestone has been
reached along the road to market maturity for the fuel cell. In this first
test phase, approximately 190,000 miles (300,000 km) have already been covered
under highly diverse conditions and documented with these vehicles. DaimlerChrysler has the opportunity of sharing goals with other
companies and government entities, such as UPS and the EPA.

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----ZAP
(OTCBB:ZAPZ), pioneering the next generation of advanced
transportation and energy technologies, announced today that it placed
a purchase order for $1 billion worth of Smart Cars with smart GmbH, a
Company of the DaimlerChrysler Group.S. ZAP has ordered the cars from smart GmbH, a Company of the
DaimlerChrysler Group, to be delivered in a fully U. The Smart Car is manufactured by
global automotive company DaimlerChrysler .html

Cautionary Statement

This press release contains forward-looking statements.

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S.S.

ZAP purchases its vehicles
from non-affiliated direct importer Smart-Automobile LLC.zapworld. The new F-Cell continues with the unique sandwich concept
developed by Mercedes-Benz that makes it predestined for this type of drive
unit.

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Last week, ZAP delivered the first Smart Car Americanized by ZAP
through its first authorized dealerships to a Nevada couple that had
placed an order for the Smart Car over a year ago. demand for the Smart Car.
In the long term, the fuel cell provides the best opportunities for
securing uncompromisingly environment-friendly mobility for the automobile:
the fuel cell runs on either pure hydrogen or hydrogen media, and is thus a
genuine zero-emission power unit: electrical energy is released in a chemical
reaction between the hydrogen and atmospheric oxygen to drive an electric
motor.

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ZAP
Americanizes the Smart Car to meet U.
The DaimlerChrysler researchers and engineers have been working since 1990
towards automotive application of this technology .
More than 100 fuel cell vehicles are currently in everyday application,
providing DaimlerChrysler engineers with invaluable information for the
ongoing development of this future-oriented technology .

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S. federal and state safety and
emissions standards.
Sporty, dynamic driving is reconcilable with emission-free operation, as
is impressively demonstrated by the technical data: the high-torque electric
motor will develop more than 100 kW -- 35 kW more power than its predecessor
generation . The component reliability and longevity have also been further
improved. In 1994 the first fuel
cell vehicle, NECAR 1, was presented; more than 20 other research vehicles and
prototypes have since followed.
Since 2003, 30 Mercedes-Benz Citaro city buses with fuel cell drive have
been on the move in regular route service in ten major European cities. Three
buses are also in operation in, Perth Australia and another three will operate
in Peking, China.

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Thomas Weber, member of DaimlerChrysler 's
Board of Management with responsibility for Research and Technology and for
the development of the Mercedes Car Group.