SEBASTOPOL, Calif., March 15, 2002 (PRIMEZONE) -- ZAP (Nasdaq:ZAPPQ) today announced it has signed Memorandums of Understanding to merge with three privately owned companies involved in alternative fuel vehicles, automotive sales and distribution.
RAP Group, Inc. (RAP), Daybreak Auto Recovery, Inc. (Daybreak) and Voltage Vehicles are three Sonoma County, California-based companies with strategic relationships in automotive services looking to accelerate their growth in the alternative transportation market. All three mergers with ZAP are contingent upon the signing of definitive agreements and ZAP's Plan of Reorganization being approved by its creditors and shareholders and confirmed by the U.S. Bankruptcy Court.
According to ZAP officials, the mergers are expected to enhance ZAP's financial base and provide access to the three companies' services and relationships. The move is expected to advance ZAP's goal of becoming a leading full-service brand in the electric and alternative fuel transportation industry. Upon completion of the mergers, ZAP plans to step up its role in building a national distribution network to support the manufacturing for its growing line of products.
Voltage Vehicles is a Sonoma County-based Nevada Corporation that has exclusive distribution contracts with electric vehicle manufacturers in the independent auto dealer network, including one of the only full-performance electric cars certified under Federal Motor Vehicle Safety Standards. In May 2001, ZAP formed a joint venture with Voltage Vehicles to develop, design, manufacture, and distribute electric vehicles including ZAP's current line of electric vehicles.
RAP is a California Corporation with an auto dealership focused on the independent vehicle market and advanced technology vehicles. A Voltage Vehicle authorized dealer, RAP currently markets electric scooters, bikes and other electric vehicles from its location on River Road in Fulton, California.
Based in Sebastopol, California, Daybreak is one of Northern California's largest automotive recovery and transfer companies serving more than 30 national and regional financing companies. Daybreak, which also provides specialty automobile transport services, holds strategic relationships with a national network of automotive dealers and institutional lenders.
"We believe that ZAP will rapidly emerge from their reorganization and we want to be part of that," said Steve Schneider, President of Voltage Vehicles. "ZAP has one of the strongest brand names in the electric vehicle industry, and for our target market, branding is an important marketing tool."
For further information, visit http://www.zapworld.com/news/mous.htm.
Founded in 1994, ZAP manufactures and distributes electric bicycles, scooters, motorbikes and other alternative transportation and recreational products. For further information, call 707-824-4150 or visit http://www.zapworld.com.
Certain statements and information included in this press release constitute "forward-looking statements" within the meaning of the Federal Private Securities Litigation Reform Act of 1995. Such forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of the Company to be materially different from any future results, performance or achievements expressed or implied in such forward-looking statements. Additional discussion of factors that could cause the actual results to differ materially from management's projection, forecasts, estimates and expectations is contained in the Company's Form 10-K and other SEC filings.