ZAP (fka ZAAP)

[Gregory_]

See below. Looks like we'll have to wait until 2009 for the Obvio. Hmm...

It looks like they plan to sell at least $120,000,000 of cars their first year!! $280,000,000 the second year! This is all based on their figures below of 7,500 cars at $16,000. If some of those are the $28,000 cars, the figures will be even higher.

In the 10QSB
In 2006, ZAP Automotive introduced the following automobile products:

· the 100% electric XEBRA sedan with an MSRP of approximately $10,500;

· the 100% electric XEBRA utility vehicle truck with an MSRP of approximately $11,200; and

· the Smart micro-car with an MSRP of approximately $25,000 (no longer distributed after September 30, 2006).

Our future offerings that are currently in the developmental stage include:

· the OBVIO 828, an economy micro-car from Brazil with an estimated MSRP of $14,000,

· the OBVIO 012, a sports-coupe from Brazil with an estimated MSRP of $28,000; and

· the ZAP-X, a 100% electric vehicle which will use Lotus Engineering’s Aluminum Performance Crossover (“APX”) design .

· The ZAP Alias, which has a target price of $30,000 per vehicle and an estimated range of 100 miles per charge

We are also in discussions with a number of other foreign manufacturers and hope to establish additional relationships within the next twelve to thirty-six months.

OBVIO!

In September 2005, we entered into an exclusive (in North America) distribution contract with the Brazilian automobile manufacturer OBVIO! for the future importation of two models of micro-cars – an economy 828 model and a full performance 012 model. The cars will have butterfly doors, seating capacity to accommodate three persons, up to 250 horsepower output and accessories such as iMobile and air conditioning. This car will function on multi-fuel technology, meaning they will have the ability to be powered by ethanol, gasoline, or any combination thereof. We are also working with OBVIO! to produce a 100% electric version. OBVIO! expects to deliver its first cars into the United States market in 2009.

There are currently over four million flex-fuel vehicles in the United States and most of these vehicles are sport-utility vehicles or others in the “light truck” class. Sedans, wagons, and others are usually only available in flex-fuel configurations as part of fleet vehicle purchases by corporations. A recent poll conducted by Maritz® showed that 84% of consumers would consider purchasing a vehicle capable of running on E85, a fuel blend of 15% gasoline and 85% ethanol, and consumers were willing to pay a median premium of $1,000 more than for a gasoline only vehicle. Unlike most flex-fuel vehicles in the U.S. which can run on up to 85% ethanol, OBVIO! vehicles will have the capability to run on 100% ethanol.

The initial retail price of the 828 model is expected to be approximately $16,000 and the retail price of the 012 model is expected to be $28,000. OBVIO! is scheduled to deliver 7,500 cars during the first year of production, 17,500 cars during the second year and 25,000 thereafter. We intend to capture market share of the flex-fuel segment by offering cars that are sporty, fun to drive, and high-performance, but yet efficient and economical.