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$68 Million in Kentucky Manufacturing Incentives Fast Tracks Electric Vehicle Talks at ZAP Headquarters With Integrity Manufacturing

Aug 18, 2008 - 6:36:01 AM

News Source MARKET WIRE

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SANTA ROSA, CA -- (Marketwire) -- 08/18/08 -- Randall S. Waldman and Larry Cottingham ofIntegrity Manufacturing LLC are in Santa Rosa, California today formeetings with the management of electric vehicle pioneer ZAP (OTCBB: ZAAP).

Integrity Manufacturing has been working with the State of Kentucky to helpprovide incentives to attract more manufacturing and assembly to the state.On Friday The Kentucky Economic Development Finance Authority gavepreliminary approval for $68 million in state incentives for a large-scalemanufacturing initiative with Integrity. The project is expected to bringeconomic development, new factory production and up to 2,500 jobs toKentucky.

Integrity Manufacturing has become a US manufacturing success story and isone of the fastest growing companies in Kentucky. According to Integrity,they have achieved rapid growth in the past year by offering competitivemanufacturing to products once made in China and other overseas markets.

CNN reports that manufacturing in China is becoming more expensive. Laborrates are rising by 10 to 15 percent annually. Also new environmental,health and quality reforms are increasing the costs of Chinesemanufacturing. Coupled with the weak dollar the rising yuan, US companiesare finding Chinese outsourcing less favorable than in the past. (See "InChina, outsourcing is no longer cheap" at URL:http://money.cnn.com/2008/08/11/smallbusiness/china_no_longer_cheap.fsb/index.htm.

"Made in the USA" is more than just a slogan; it's a mission to IntegrityCEO Randall Waldman, the visionary behind Integrity's success. Waldman saysthat every product that leaves his plant is stamped with USA-KY to showwhere it was made. According to Waldman, Integrity's Louisville plant iscurrently manufacturing for HomeDepot, EMD along with 20 other Fortune 1000companies. On Friday, Integrity signed a $100 million contract withBoston-based BioDefense Corp. to produce their MailDefender security devicethat will be marketed throughout the world, a project expected to create125 new jobs.

ZAP manufactures its electric vehicles primarily in China and Integrity hasinvited ZAP to consider expanding its manufacturing in the state as part ofKentucky's economic development. Orders for ZAP's full-line of electricvehicles have been increasing and ZAP has been working to find ways ofexpanding it manufacturing.

Integrity says the prospect of building electric vehicles in Kentucky hasattracted support from throughout the automotive industry. Waldman says hehas been approached by a number of individuals and companies withautomotive manufacturing expertise who wish to play a role in the electricvehicle project.

Auto dealer Larry Cottingham is also visiting ZAP today. Earlier this yearCottingham started a one-man campaign to expand the use of electricvehicles in the state. Over time Cottingham attracted help from Waldmanwith Integrity Manufacturing as well as several local political leaders.Two weeks ago his hard work paid off as a coalition of state legislators,led by Governor Steve Beshear, passed a law clearing the road for moreelectric vehicle use in the state, including ZAP's Xebra electric sedan andtruck.

About Integrity Manufacturing:

Integrity Manufacturing was formed in February 2007 with 7 employees.Integrity has grown to over 400 employees and is the fastest growingcompany in Kentucky. Integrity Manufacturing has a combined square footageof over 250,000 square feet in three Kentucky locations. IntegrityManufacturing is the recipient of the 2007 "Emerging Business" awardpresented by Business First in Kentucky. Integrity's sales haveconsistently grown by focusing on industries that represent current andcontinued growth such as energy, transportation and material handling. Tolearn more about Integrity Manufacturing visit their web site athttp://www.integrity-manufacturing.com.

About ZAP

ZAP has been a leader in advanced transportation technologies since 1994,delivering over 100,000 vehicles to consumers in more than 75 countries.ZAP is positioning its business at the forefront of fuel-efficienttransportation with new technologies including energy efficient gassystems, electric, hybrid and other innovative power systems. ZAP has ajoint venture called Detroit Electric to manufacture electric and hybridvehicles with Youngman Automotive Group. Detroit Electric is developing afreeway capable electric vehicle called the ZAP Alias. Future plans for theventure are dependent upon both parties receiving outside financing. ZAP isalso developing a new generation of vehicles using lithium batteries. TheCompany recently announced a strategic partnership with Dubai-based AlYousuf Group to expand its international vehicle distribution. ZAP alsomakes an innovative, new portable energy technology that manages power formobile electronics from cell phones to laptops. 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 risks.

Contact:
Alex Campbell
ZAP
707-525-8658 x 241
acampbell@zapworld.com



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