MONTEVIDEO, URUGUAY--(MARKET WIRE)--Nov 11, 2008 -- The Mayor of Montevideo approved incentives for electric car ownership and use in Uruguay, according to industry pioneer ZAP (OTC BB:ZAAP.OB - News).

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

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

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

ZAP currently employs seven workers in Uruguay with a retail store and small manufacturing and distribution facility for electric bicycles and scooters. ZAP runs a seasonal rental outlet in Punta del Este, a beach resort 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. In California owners of qualified Xebra electric city cars and trucks can receive a $1,000 tax credit.

About ZAP

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

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.

     ZAP USA Media Relations
     Alex Campbell
     707-525-8658 ext. 241
     acampbell@zapworld.com
      
     ZAP Latin America
     Fernando Cancela
     707-525-8658 x 205
     fcancela@zapworld.com