Press Release: California Firm Signs Agreement With China

For Immediate Release (C-03-97)
Contact: Communications Office (916) 324-9670
February 7, 1997

555 Capitol Mall, Suite 525
Sacramento, CA 95814
(916) 324-9670
FAX (916) 445-5563

SACRAMENTO--California Environmental Protection Agency (Cal/EPA) and electric bicycle manufacturer Zap Power Systems of Sebastopol, California, will host a press conference on Monday, February 10, 1997 at 11:00 AM in Sacramento to announce results of their recent trip to China and ZAP's agreement with China regarding electric vehicles.

WHO:

• James M. Strock, Secretary for Environmental Protection
• Gary Starr, Managing Director, ZAP Power Systems
• Margaret Wong, President of McWong International, Inc. Principal, ZAP China

WHAT: Press Conference, Electric Bicycle Demonstration (Test Rides Available to the Media; Video and Photos from China Available Upon Request)

WHEN: 11:00 AM, Monday, February 10, 1997

WHERE: State Capitol, Governor's Press Room, Room 1190 Demonstration, (Immediately Following) West Steps, State Capitol

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ZAP's Press Release Dated February 10, 1997 Is As Follows:

California Firm Signs Electric Bicycle Agreement With China

SACRAMENTO--Zap Power Systems of Sebastopol, California announced today that though its entity ZAP China, it has entered into an agreement with the Shanghai Forever Company Ltd. to cooperate on the production and marketing of electric bicycles in China.

The 50 year old governmental/publicly owned Forever Company will distribute the Zap Forever Bicycles through its 1,400 sales outlets in China. The bicycle factory, which as produced over 90 million bicycles and currently manufactures over 3 million bicycles a year, will also cooperate with ZAP in the manufacture of the Zap electric bicycle.

Under the terms of the agreement, Zap will provide Forever with up to 5,000 ZAP motors for a six month sales test program. After the test program, the parties will form a joint venture to develop, manufacture, and distribute the electric bicycle and other electric bicycle products including electric tricycles, electric scooters, electric motorcycles and electric wheel chairs.

"Governor Wilson's recent mission to Asia demonstrated outstanding potential for its introduction of California world-leading environmental technologies to China. We intend for today's agreement to the be first of many joint efforts with Asian partners," said James M. Stock, California Secretary for Environmental Protection.

"Exporting emerging technologies and fostering new partnerships in Asia is driving California exports," said Julie Meier Wright, Secretary of the California Trade and Commerce Agency, who accompanied Wilson on the Asian trade mission. 

"California is showing itself to be at the forefront of entrepreneurial energy in the global market."

Zap Managing Director Gary Starr said, "This contract is the result of over 10 years of work in developing the correct relations. Our partner in this venture, Sacramento based McWong International, is a leader in China/U.S. business trade joint ventures."

Mr. Fan Da Zheng, President of the Shanghai Light Industry Holding Company Group who oversees 790 companies including Forever, welcomed the cooperation between Forever and Zap. "If the relationship is based on mutual trust and mutual benefits the venture will be a great success. The project has my support and will have good potential. Since Forever is one of the largest manufacturers in China, it is the right partner," he said. 

"Shanghai has recently banned the license of new gas mopeds and bicycles and intends to replace 80 percent of existing gas powered bicycles. Today there are over 470,000 such vehicles in just the city of Shanghai, and the government plans to encourage electric vehicles to take their place."

Starr said, "This contract is not only a milestone for ZAP, it is an historic moment in transportation. With this relationship, ZAP can be one of the leaders in low cost electric vehicles. Additionally, as its economy prospers, China is in the unique position to skip the polluting gas moped and scooter phase altogether and leapfrog directly from its millions of human powered bikes to clean electric vehicles. The pollution savings and growth possibilities are staggering."

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