ZENN Motor Company Reports First Quarter 2011 Results

Marketwired

TORONTO, ONTARIO--(Marketwire - Feb. 25, 2011) - ZENN Motor Company Inc. ("ZMC" or the "Company") (TSX VENTURE:ZNN - News) today announced its unaudited financial results for the three months ended December 31, 2010. All amounts are expressed in Canadian dollars.Financial ResultsFor the three months ended December 31, 2010, net losses from continuing operations were $743,488 or $0.02 per share. For the corresponding period in the prior year, net losses from continuing operations were $1,072,852 or $0.03 per share. In the prior quarter (Q4 of fiscal 2010), losses from continuing operations were $980,423 or $0.03 per share.The 30% decrease in the loss from continuing operations in the current quarter as compared to the same quarter of the prior year, and the 24% decrease from the prior quarter (Q4 of fiscal 2010), are reflective of management's continued focus on cost reduction, while advancing ZMC's ZENNergy(TM) technologies and solutions. As previously announced, the Company's use of cash in this quarter has declined significantly from the prior year, averaging less than $200,000 per month during the current quarter as compared to an average of approximately $435,000 per month during fiscal 2010. Both the wind-down of ZMC's LSV business and general cost reduction efforts have resulted in the decrease in the Company's use of cash.At December 31, 2010 the Company had cash, cash equivalents and short-term investments totaling $4,501,745 compared to cash, cash equivalents and short-term investments of $5,074,652, at September 30, 2010.Company UpdateThe Company continues to develop its knowledge in deployment and control of high-density power storage for automotive applications. The Company's primary development activities are focused on the following three areas:




-- creating and then protecting the intellectual property associated with
its planned ZENNergy technology and solutions;
-- identifying and pursuing rights or relationships for additional
complementary technologies that could further enhance the capabilities
of the ZENNergy technologies and solutions as well as other potential
applications; and
-- developing the "go-to-market" plans for these solutions.

Progress updates on all of these initiatives will be communicated to the Company's stakeholders as they mature and when such disclosure will not impair the value of our intellectual property, breach any applicable non-disclosure agreements or otherwise negatively impact our competitive advantage.Additional InformationReaders are encouraged to read the Company's unaudited consolidated financial statements for the quarter ended December 31, 2010, the corresponding Management's Discussion and Analysis and the Company's Annual Information Form dated January 20, 2011. All of these documents have been filed and are available for viewing on SEDAR at www.sedar.com and posted on the Company's website at www.ZENNcars.com.About ZENN Motor Company Inc.ZENN Motor Company, Toronto, Canada, is dedicated to enabling emission-free, energy-efficient transportation through unique, yet widely applicable, technology offerings. Driven by quality, ingenuity and a philosophy of social responsibility, the ZMC team is redefining what is possible in the pursuit of zero emission transportation.ZENNergy technologies and solutions, to be powered by EEStor's electrical energy storage units (EESU) are expected to enable OEM and Tier 1 partners to deliver advanced electric transportation solutions to their customers. The Company has a Technology Agreement with EEStor that provides certain exclusive and non- exclusive rights to purchase and deploy EEStor's EESU technology, which rights are detailed in the Company's AIF.Forward-looking StatementsCertain statements in this release, other than statements of historical fact, may include forward-looking information that involves various risks and uncertainties that face the Company; such statements may contain such words as "may", "would", "could", "will", "intend", "plan", "anticipate", "believe", "estimate", "expect" and similar expressions, and may be based on management's current assumptions and expectations related to all aspects of the automotive industry, consumer demand for zero emission transportation solutions and the global economy. Risks and uncertainties that may face the Company include, but are not restricted to: the EEStor energy storage technology may not be successfully commercialized at all, in a manner providing the features and benefits expected while under development, or on a timely basis or the Company may not be able to successfully incorporate this technology into its current or proposed products; the Company could fail in its efforts to develop viable ZENNergy technologies and solutions or do so on a timely basis; steps taken by the Company to protect its proprietary rights may not be adequate or third parties may infringe or misappropriate the Company's proprietary rights; the Company has a history of losses from operations and may not be able to obtain financing, if and when required, to fund future expenditures for general administrative activities, including sales and marketing and research and development, expansion, strategic acquisitions or investment opportunities or to respond to competitive pressures; competitors may develop products which offer greater benefits to consumers, have greater market appeal or are more competitively priced than those offered by the Company; the Company may be exposed to product liability claims which exceed insurance policy limits; the Company is dependent on the ability and experience of a relatively small number of key personnel; new products introduced by the Company may not be accepted in the market or to the extent projected; new laws and regulations may be enacted or existing ones may be applied or governmental action may be taken in a manner which could limit or curtail the production or sale of the Company's products; and the Company may be negatively affected by reduced consumer spending due to the uncertainty of economic and geopolitical conditions. These risks and uncertainties may cause actual results to differ from information contained in this release, when estimates and assumptions have been used to measure and report results. There can be no assurance that any statements of forward-looking information contained in this release will prove to be accurate. Actual results and future events could differ materially from those anticipated in such statements. These and all subsequent written and oral statements containing forward-looking information are based on the estimates and opinions of management on the dates they are made and expressly qualified in their entirety by this notice. Except as required by applicable laws, the Company assumes no obligation to update forward-looking statements should circumstances or management's estimates or opinions change. Readers are cautioned not to place undue reliance on any statements of forward looking information that speak only as of the date of this release. Additional information identifying risks and uncertainties relating to the Company's business are contained under the heading "Risk Factors" in ZMC's current Annual Information Form and its other filings with the various Canadian securities regulators which are available online at www.sedar.com.Information contained in this release relating to EEStor, Inc. or the energy storage technology being developed by EEStor has not been reviewed by EEStor and EEStor does not assume any responsibility for the accuracy or completeness of such information.Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
Contact:
Catherine Scrimgeour
ZENN Motor Company
Manager, Public Affairs
416-535-8395 ext. 201
cscrimgeour@ZENNcars.com

Larry Goldberg
ZENN Motor Company
Chief Financial Officer
416-535-8395 ext. 210
lgoldberg@ZENNcars.com
www.ZENNcars.com
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