ZAP (OTCBB: ZAAP)
SANTA ROSA, Calif.–(BUSINESS WIRE)–For the year ending December 31, 2006, ZAP (OTCBB:ZAAP – News) reported annual financial results in which sales for its electric and other fuel-efficient vehicle technologies tripled due to increasing demand spurred by rising gas prices.
Sales for the year ending December 31, 2006 were $10.8 million compared to $3.6 million in 2005. The increase of $7.2 million was due to sales of advanced technology vehicles of $8.3 million for 2006 versus $432,000 in 2005. The increase in sales of advanced technology vehicles was offset by a subsequent drop in sales of fossil fueled vehicles. For ZAP, 2006 marked the launch of automotive marketing and distribution, highlighted by the introduction of the XEBRA electric sedan and truck in June through its network of automotive dealers.
ZAP officials say the volatility in gas prices helped fuel the higher demand for its vehicles. According to the U.S. Department of Energy, U.S. retail gas prices climbed over $2.80 per gallon for five consecutive months in 2006 versus two months in 2005.
“We believe US consumers are feeling the pinch of higher gas prices, which are reaching historic levels and pushing millions to search for less expensive alternatives,” said ZAP CEO Steve Schneider who noted that using electricity to fuel vehicles costs a fraction of gasoline. He added: “Concerns of global warming and the environment have pervaded our daily lives, which is bringing unprecedented attention to the advanced technology vehicle industry.”
Schneider noted that with the XEBRA, ZAP is currently marketing the only production electric vehicles that meet all DOT standards for on-road use in the United States. ZAP is working to capitalize on these trends with the announcement in February 2007 that it will develop a new generation of electric vehicles, including the ZAP-X compact SUV, designed by Lotus Engineering. ZAP is also in a venture to make fuel-efficient ethanol and electric micro-sports cars with Brazilian automaker OBVIO ! Automotoveiculos S.A. of Rio de Janiero.
ZAP reported that the net loss for 2006 decreased by 50 percent compared to 2005, from $23.5 million in the year ended December 31, 2005 to $11.9 million in 2006. The decrease was primarily due to a significant one-time gain on the discharge of liabilities related to an automotive distribution contract.
About ZAP
ZAP has been a leader in advanced transportation technologies since 1994, delivering over 90,000 vehicles to consumers in more than 75 countries. At the forefront of fuel-efficient transportation with new technologies including energy efficient gas systems, hydrogen, electric, fuel cell, ethanol, hybrid and other innovative power systems, ZAP is developing a high-performance crossover SUV electric car concept called ZAP-X engineered by Lotus Engineering. The Company recently launched a new portable energy technology that manages power for mobile electronics, like cell phones and laptops. For more product, dealer and investor information, visit http://www.zapworld.com.
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.
Contact:
ZAP
Alex Campbell, 707-525-8658 ext. 241 (Media)
acampbell@zapworld.com
or
Sherri Haskell, 707-525-8658 ext. 232 (Investors)
shaskell@zapworld.com
Source: ZAP
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