ZENN Motor Company Completes Additional Equity Investment in EEStor, Inc.

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TORONTO, ONTARIO--(Marketwire - July 2, 2009) - ZENN Motor Company Inc. ("ZMC" or "the Company") (TSX VENTURE:ZNN) announced today that it has increased its equity investment in energy storage developer, EEStor, Inc. with an additional US $5.0 million investment. The investment represents the exercise of the maximum additional investment option available to the Company which was to acquire 117,757 shares at the same price-per-share as the original equity investment granted to ZMC pursuant to the share purchase agreement between ZMC and EEStor dated April 30, 2007. The Company's intention to exercise this additional investment option was previously announced on May 21, 2009.
The additional equity investment option was triggered by EEStor's successful completion of permittivity testing on their Composition Modified Barium-Titanate powders, a key milestone under the Technology Agreement between ZMC and EEStor as outlined in the Company's press release of May 21, 2009.
The Company now owns approximately 10.7% of the equity of EEStor, Inc., an increase from the 3.8% previously held. The investment was made through the Company's wholly owned subsidiary ZENN Capital Inc.
The Company's ability to maximize its investment in EEStor is a result of certain EEStor shareholders not exercising their follow-on investment rights. These investors had also elected not to participate at the time of the Company's initial EEStor investment in April 2007. This investment represents a way for ZMC's shareholders to participate in the additional market applications that EEStor may develop for its technology, in addition to the Company's automotive applications.
Under its Technology Agreement with EEStor, ZMC holds the worldwide exclusive rights to incorporate EEStor's energy storage technology for new passenger vehicles up to 1,400 kilograms curb weight (net of batteries); golf carts, Low Speed Vehicles and certain utility vehicles; and the conversion of any class of used internal combustion 4-wheel vehicles to electric.