ZERO Motorcycles Awarded Additional State Grant

New Funding To Support Advanced Electric Powertrain Development

SANTA CRUZ, Calif. (September 28, 2010) - Zero Motorcycles, the global leader in the electric motorcycle industry, has been awarded a second grant in California to further the development of advanced electric powertrain systems. The most recent award comes from the Monterey Bay Unified Air Pollution Control District (MBUAPCD) where Zero was awarded a $177,906 grant in partnership with the city of Santa Cruz. The new grant adds funding to the $900,000 grant from the California Energy Commission awarded last month. Additional matching funds from the City of Santa Cruz and others provides Zero with total funding for the project of $2,018,000.

"We are thrilled to receive this grant and are further inspired by their enthusiasm," said Gene Banman, CEO of Zero Motorcycles. "Our intention with this new powertrain development program is to continue advancements in the powersports industry while supporting the local economy."

This newest grant will be used in Zero's research and development program in Santa Cruz, California, which will in turn create new jobs. Zero now has the financial momentum and expertise to develop electric motorcycle powertrains that exceed current levels of performance, range and efficiency.

"Zero Motorcycles is an exciting company creating sustainable zero emissions electric transportation and we fully support their expansion in Santa Cruz," said Bonnie Lipscomb, Director of Economic Development and Redevelopment for the city of Santa Cruz. "We are thankful companies like Zero grow while creating local jobs that support a greener environment for all of us - it's the best kind of public-private partnership."

**About Zero Motorcycles: **
Zero Motorcycles is the next step in motorcycle evolution and represents the ultimate electric motorcycle technology. Unencumbered by conventional thinking about how to design, manufacture, and sell high performance electric motorcycles, they are on a mission to turn heads and revolutionize the industry by combining the best aspects of a traditional motorcycle with today's most advanced technology.

Zero Motorcycles' complete product lineup is available for purchase exclusively through the Zero Motorcycles website: www.zeromotorcycles.com.

ZERO Motorcycles Awarded Additional State Grant