SANTA ROSA, Calif.--(BUSINESS WIRE)--Electric car pioneer ZAP (OTCBB:ZAAP) this week began project planning with the government of Shanghai's Yangpu District to develop a Green City Zone in Yangpu's downtown area, a university and research hub that is home to 1.24 million people. Based on an MOU partnership agreement signed in San Francisco on November 19, 2010, the project plans to reduce carbon emissions in Yangpu using electric vehicles (EVs) for its public transportation while installing an EV charging infrastructure, battery swap-out stations and maintenance support centers.

The partnership agreement with Yangpu government is a direct result of Governor Schwarzenegger’s trade delegation to Shanghai in September this year, sponsored by the Bay Area Council, and is one of the first formal initiatives between the two regions.

Party Secretary Chen Yin attended the signing ceremony in San Francisco on November 19, 2010. At the ceremony, Party Secretary Chen said that improving air quality, “green” urban mobility and development of clean energy infrastructure are some of the key initiatives of Yangpu in the next few years. He indicated that this agreement shows the beginning of growing ties between two of the world’s leading technology innovation centers, Yangpu and the Bay Area, especially in the development of clean technology. Within the 24 square mile district of Yangpu there are 14 universities surrounding the Knowledge Innovation Center (KIC), a technology community that includes Fudan University and Tongji University, making this area one of the leading research centers in China on Clean Tech.

“New plug-in vehicle technologies from ZAP, together with Jonway’s cost effective manufacturing in China, will accelerate the implementation of our Green Project with Yangpu. This truly bridges the best aspects of both the US and China, leveraging the strengths of the technological innovation in the Bay Area and Yangpu,” said ZAP CEO Steve Schneider.

According to the framework of the partnership, ZAP will provide an electric car charging infrastructure, battery swap out stations, as well as EV maintenance and repair depots in Yangpu. ZAP will work with Yangpu’s government agencies, local universities, and private corporations on plans to further expand zero-emission transportation in the city.

“We have just started the initial planning of this long term project. The hard work of implementation and operations is ahead of us. We believe that the project planning and resourcing will be a yearlong process. We are pleased to be part of Yangpu’s Green Project and share Party Secretary Chen Yin’s vision and commitment to delivering his objectives,” says ZAP Chairman Dr. Priscilla Lu.

To execute these plans and better access the Chinese market, ZAP Jonway will open its EV sales and operations office in the Yangpu District and plans to establish its research and development engineering center in the district to take advantage of the university communities.

About ZAP

Based in Santa Rosa, ZAP has been a pioneer in the electric vehicle industry since 1994, engaging in the design, development, commercialization and distribution of 100% pure electric vehicles and power systems, and delivering a wide range of vehicle designs to consumers and fleet customers in the United States and international markets for sixteen years. The company supplies electric trucks and vans to military, government and corporate fleets and offers personal transportation products including electric motorcycles, scooters, ATVs and some of the only electric city-speed vehicles in production today. ZAP is also developing a freeway capable electric vehicle called the ZAP Alias that was a finalist in the Progressive Insurance Automotive X PRIZE.

About Jonway

Jonway is the trade name of Zhejiang Jonway Automobile Co., Ltd., an automobile manufacturer based in Taizhou, Zhejiang, China that currently produces several thousand units per year of two SUV models, the A380 3-door and the A380 5-door. Built in 2009, Jonway’s modern 3.6 million square foot factory on 141 acres is ISO9000 certified and has the capacity to produce up to 30,000 units per year. It employs over 800 workers and distributes its vehicles in China through 80 factory direct dealers and hundreds of factory authorized dealers. Jonway Auto is a subsidiary of Jonway Group, which has been a leader in the manufacturing of motorcycles, ATVs and related products for more than 20 years.

Safe Harbor Statement

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 ZAP’s products, increased levels of competition, new products and technological changes, ZAP’s dependence upon third-party suppliers, intellectual property rights and other risks detailed from time to time in the ZAP’s periodic reports filed with the Securities and Exchange Commission.

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