ZENN Motor Company Reports Second Quarter 2011 Results

http://www.einnews.com/pr-news/431405-zenn-motor-company-reports-second-quarter-2011-results-

ZENN Motor Company Inc. ("ZMC" or the "Company") (TSX VENTURE:ZNN) today announced its unaudited financial results for the three and six months ended March 31, 2011. All amounts are expressed in Canadian dollars.

Financial Results

For the three and six months ended March 31, 2011, net loss from continuing operations were $1,532,784 or $0.04 per share and $2,276,272, or $0.06 per share, respectively, after unusual items. For the corresponding periods in the prior year, net losses from continuing operations were $1,051,660 or $0.03 per share and $2,124,512 or $0.06 per share, respectively.

In the current period, the Company expended $370, 486 in legal, professional and advisory fees related to shareholder matters surrounding the Company''s Annual and Special Meeting on March 22, 2011. As well, the Company wrote off previous investments in the amount of $201,760. Excluding these items, the loss from continuing operations in the three months ended March 31, 2011 decreased by approximately 9% as compared to the same period in the prior year and fell by 19.8% in the six months ended March 31, 2011, compared the same period in the prior year.

At March 31, 2011 the Company had cash, cash equivalents and short-term investments totaling $3,005,934 compared to cash, cash equivalents and short-term investments of $5,074,652, at September 30, 2010.

Company Update

As a result of its review of the Company''s infrastructure and business strategies, the Board of Directors has begun to actively implement strategic decisions to simplify the organization, reduce costs and focus the Company''s resources on its investment in EEStor, Inc. In connection with the implementation, the Company is pleased to announce that Mr. James Kofman, Chair of the Board, has been appointed Interim CEO to oversee the refocus of the Company''s business activities. In addition, the Company''s Chief Financial Officer, Vice-President Business Development and Vice-President Engineering have agreed to reduce their full time activities as part of a plan to transition out of the Company at various times over the next six months. Mr. Kofman commented, "The Board truly appreciates the assistance the Company''s senior executives have given in enabling the Company to reduce its efforts in operations and product development so that it can put a greater emphasis on an enhanced business relationship with EEStor."

Additional Information

Readers are encouraged to read the Company''s unaudited consolidated financial statements for the quarter ended March 31, 2011, 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. Working with EEStor''s electrical energy storage units (EESU) under development, ZMC aims 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 nonexclusive rights to purchase and deploy EEStor''s EESU technology, which rights are detailed in the Company''s AIF.