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Zap and its subsidiary Jonway Autos have sold 2,000 electric vehicles since June. Zap credits China's EV incentives and growing charging infrastructure for the success. The group has also hosted 150 interested dealerships at promotional events in the hopes of building a strong sales network. Zap also introduced a sub-$10k SUV powered by a 1.5-liter engine, which it feels might be a good candidate for CNG power. Read more in the press release below.

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ZAP and Jonway Auto Hits Sales Milestone of Over 2000 EVs since June and Hosted Over 150 New Dealership Applicants

SANTA ROSA, Calif., Sept. 11, 2014 /PRNewswire/ -- ZAP (ZAAP), an Electric Vehicle (EV) automotive company incorporated in California Bay Area, and its subsidiary Jonway Auto sold over 2000 Electric Vehicles since June 2014 when EV mass production started at its electric vehicle type-approved certified factory. The Companies' strategy is to continue to build its EV product expertise and sales presence with new dealership networks skilled at developing EV markets for the different regions in China. The Chinese government has allocated funding and deregulated the installation of charging stations to stimulate the build out of charging infrastructures. Corporations and government are financially incented to purchase EVs for their daily transportation and deliveries. Leasing and rental companies have expanded significantly over the last year in order to address the preferred model of leasing EVs by corporations and consumers and more rapidly accelerate adoption. These leasing and logistics companies are the focus of ZAP and Jonway Auto.

To support the strategy of addressing this new market, ZAP and Jonway Auto hosted the first of a series of promotional events to qualify new dealerships last week at its headquarter. More than 150 dealership participants attended and showed strong interests and enthusiasm for ZAP Jonway's products. Jonway Auto invited applicants who are interested and skilled at marketing and sales of the new product line. The intention is to build up a new network of dealers that are better resourced and could potentially be targeting EMS delivery and transportation vertical markets. ZAP and Jonway Auto unveiled its new SUV models. Alex Wang, Co-CEO of ZAP and Jonway Auto presented the new vision for the company's direction and the overall corporate strategy and plan focused on renewable energy vehicles and to narrow the focus of gasoline vehicle models offered, in order to channel the company's resources appropriately. The new 1.5 liter SUV priced at below $10,000, announced at the event, targets the broader mass market, where buyers would find great value and quality given the competitive price. This new cost competitive SUV model will be an ideal platform for launching the CNG SUVs.

This new dealership event precedes a follow on EV dealership qualification event planned later on this year when ZAP and Jonway Auto will be expanding to add more EV dealers that can support the new EV products and sales strategy of the Company. Jonway Auto's EV models are uniquely positioned in the Chinese market to take advantage of the government incentives as certified type approved EVs. ZAP and Jonway Auto's EV SUV is the first type approved EV SUV in the Chinese market, and well-engineered to qualify for the stimulus program offered by the central and local governments for EVs. Jonway Auto intends to bring on these new dealers with the qualifications to support EV marketing and sales, targeting government and fleet delivery markets and to develop new distribution networks with customer service centers trained to provide the EV technical support all over the country.

The focus of the new dealership networks will be to provide the centers for selling or leasing minivan EV fleets and government EV SUVs. Jonway Auto is working with a number of logistic companies in China to deliver the EV products either in a leasing program or for sale in the urban delivery transportation markets.

The event qualified 27 dealerships that are the first group of new dealers from various regions in China who will begin training for the new products in October with the target of selling and supporting the sales network before yearend.

About ZAP and Jonway Auto
ZAP and Jonway Auto designs and manufactures quality, affordable new energy and electric vehicles (EVs). Jonway Automobile has ISO 9000 manufacturing facilities, certified for EV manufacturing, and engineering, sales and customer services facilities in China. Jonway has production capacity of up to 50,000 vehicles per year, over 1 million square feet of factory space, and over 65 acres of land and established sales distribution network in China. ZAP, an early pioneer of EVs, brings to both companies a broad range of EV product technologies. ZAP is headquartered in Santa Rosa, California and Jonway Auto is located in Zhejiang Province of the People's Republic of China. Additional information about ZAP Jonway is available at http://www.zapworld.com.

This press release contains certain forward-looking statements is defined in the Private Securities Litigation Reform Act of 1995. The words "anticipate," "believe," "estimate," "expect," "intend," "plan," and similar expressions that may tend to suggest a future event or outcome are not guarantees of performance, which cannot be predicted or anticipated. These forward-looking statements are based largely on expectations and are subject to a number of risks and uncertainties, many of which are beyond the control of the Company. Actual results could differ materially from these forward-looking statements.


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