EXHIBIT 99.1
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ZAP SIGNS DEFINITIVE STOCK AGREEMENT FOR SMART CAR

         SANTA ROSA, California (November 5, 2004) - Advanced automotive
technology Company ZAP (OTC BB:ZAPZ) announced today that it has signed a stock
conversion agreement with Smart-Automobile, LLC for the $8 million in preferred
stock that were issued in conjunction with the April 2004 $10 million
distribution agreement.

         This agreement outlines the formula for converting the $8 million of
ZAP Preferred Shares into ZAP Common Stock by Smart-Automobile based upon
certain performance objectives.

         The Company has also filed with the Secretary of State of California to
Amend and Restate its Articles of Incorporation to fix the rights and conditions
of Preferred Stock.

         ZAP and Smart-Automobile are preparing to launch marketing and
distribution for the car in the U.S. pending federal approval. ZAP has a
near-term goal of 150 dealer outlets by early 2005 and is planning its first
public display for the cars at the San Francisco International Auto Show, open
to consumers November 21-28 at The Moscone Center in downtown San Francisco.

         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 world leader in cleaner transportation technologies
since 1994, celebrating its tenth year in business. The Company has delivered
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
cars, bicycles, scooters, motorbikes, underwater scooters and more. For more
information, visit http://www.zapworld.com or call 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.

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Media Contact: Alex Campbell, (707) 525-8658 x 241, acampbell@zapworld.com
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Investor Relations: Steven Kim, (707) 525-8658 x 298, skim@zapworld.com
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