EXHIBIT 99.1
                                                                    ------------



PRESS RELEASE                                       CONTACT: Alex Campbell
May 11, 2004                                        -------  (707) 525-8658 x241
                                                             alex@zapworld.com




 ZAP SIGNS $10 MILLION EXCLUSIVE DISTRIBUTION AGREEMENT FOR 60 MPG SMART(R) CAR

         SANTA ROSA, California (May 11 , 2004) - Transportation pioneer ZAP
(OTC BB: ZAPZ ) announced today that it has signed a $10 Million purchase
agreement with SMART-Automobile LLC to be the exclusive distributor and licensed
manufacturer in the United States for its 60-MPG SMART Car.

         With record gas prices hitting the U.S., officials at ZAP and
SMART-Automobile are excited to be selling one of the most fuel-efficient cars
on the planet. Reports indicate that SMART cars can achieve more than 60 miles
per gallon in fuel economy, rivaling even hybrid gas-electric cars.
SMART-Automobile president Thomas Heidemann says he believes the partnership
with ZAP will allow them to jump-start U.S.-sales, with plans to distribute
15,000 units annually by 2005.

         "I believe ZAP is the best partner because they have been leaders for
fuel efficiency and are focused on creating an auto dealer distribution network
for these types of vehicles," said Heidemann. "I wanted to be associated with a
company like ZAP that has the ability to capitalize on this sort of opportunity.
I have other cars in mind for ZAP's dealer network."

         ZAP entered the car market in 2003 with the sale of electric cars. The
company's new ZAPCAR(TM) earned five trophies at Michelin's Challenge Bibendum,
the world's largest competition for fuel-efficient cars. The SMART cars will be
distributed in the U.S. as part of ZAP's auto dealer program specializing in
advanced transportation technologies, including more fuel-efficient automobiles
powered by gasoline, electric and other fuels.

         "This partnership with SMART-Automobiles LLC and MR. Heidmann
exemplifies the relationships that ZAP is actively seeking and we welcome more
vehicles and partnerships from automotive companies around the world," said ZAP
CEO Steve Schneider. "These partnerships help bring more advanced technology
vehicles to market which helps ZAP lead the auto industry towards greater fuel
efficiency and social responsibility."

         Aside from the fuel-savings, officials with ZAP and SMART-Automobile
believe the styling and design of the car will have market-appeal in the United
States. Like the popular Mini Cooper(R), the ultra-compact, two-passenger SMART
cars are the product of European innovation, encompassing a number of "smart"
designs to create an economical car that requires less space and fuel. SMART
designers chose to create a two-passenger coupe that provides ample room for two
adult passengers. At eight feet in length, the car is short enough to back into
a parallel parking spot; two can park bumper-to-bumper in a single parking
space.



         Other "smart" features and options of the SMART car include a 61-hp,
3-cylinder turbocharged engine, equipped with an advanced electronic
stabilization program, or ESP, an anti-skid design that throttles the engine
torque along with an anti-lock braking system. The unique 6-speed automatic gear
transmission with kickdown function allows the user to switch between
"automatic" and "manual" gear shifting via a control program that changes gears
in response to varying driving characteristics. There is also an emphasis on
safety, with a unibody safety cell, steel-reinforced construction, higher
passenger elevation for enhanced visibility, and front and rear "crashbox"
low-speed dent resistant panels. The SMART package is rounded out with
additional sport features and options like dual airbags, power winders, power
locking and options like air-conditioning and convertible roof. The new SMART
cars are available to ZAP dealers in select states. For dealer and sales
information, visit http://www.zapworld.com or call +1-707-525-8658.

         Smart-Automobiles LLC is an independent, privately-held company that
oversees the direct importation and modification of automobiles to meet U.S.
standards.

ABOUT ZAP

         ZAP has been a leader in clean transportation technologies since 1994,
delivering more than 85,000 vehicles to customers in more than 60 countries. A
public company, ZAP is traded on the Over-the-Counter stock exchange under the
symbol ZAPZ. The company offers a variety of advanced technology vehicles,
including electric cars, bicycles, scooters, motorbikes, underwater scooters and
more. For more information, visit http://www.zapworld.com or call
+1-707-525-8658.

         Forward-looking statements in this release are made pursuant to the
"safe harbor" provisions of the Private Securities Litigation Reform Act of
1995. 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.

                                      # # #