TORONTO, ONTARIO--(Marketwire - Jan. 27, 2012) - ZENN Motor Company Inc. (TSX VENTURE:ZNN.V - News) (the "Company") today announced its audited financial results for the three months and year ended September 30, 2011. All amounts are expressed in Canadian dollars.

Financial Results

For the three months and year ended September 30, 2011, net losses from continuing operations were $752,780 or $0.02 per share and $4,418,072 or $0.12 per share, respectively. For the corresponding periods in the prior year, net losses from continuing operations were $980,423 or $0.03 per share and $4,141,528 or $0.11 per share, respectively.

The loss from continuing operations before unusual items for the three months and year ending September 30, 2011 were $626,835 and $3,472,654, respectively, which results in a 36% and 16% decline when compared to same periods in the prior year. The decrease in the current period is reflective of further cost cutting measures implemented as a result of a strategic review and refocus of the business initiated by the Board of Directors in May 2011. These cost savings are expected to continue into the Company's 2012 fiscal year. The unusual items in the current period are legal expenses and reimbursement of a Director's expenses in connection with board changes and severance costs.

At September 30, 2011 the Company had working capital of $1,095,105 and cash, including cash and short-term investments, totaling $1,680,165, compared to working capital of $4,580,376 and cash of $5,074,652, respectively, at September 30, 2010.

Company Update

James Kofman Chairman of the Board and Interim CEO commented: "It has been a difficult and challenging year for ZENN. The Company significantly reduced its cash burn rate by reducing its headcount and re-focusing the business. ZENN suspended its independent development of technologies that were intended to be complimentary to those being developed by EEStor in order to conserve its cash and ensure the pace of its developments were in line with the pace of development at EEStor. It also ceased investing in complimentary technologies. Unfortunately, while shareholders, employees and the Company's directors were all hoping that there would be a public announcement from EEStor in 2011 about technological progress, no such announcement was made. The Company has worked hard to enhance its relationship with EEStor this past year. However, it is subject to a very strict non-disclosure agreement with EEStor and is not permitted to comment on the state of development of EEStor's technology until such time as EEStor makes a public statement or otherwise authorizes ZENN to comment. Representatives of the Company have maintained a regular dialogue with EEStor, have visited the facilities and have had ongoing discussions regarding the status of technology development efforts. Other than permittivity testing completed in 2009, ZENN has not had the contractual right to test any technology being developed by EEStor or to have independent experts verify the performance of technology being developed. However we are ready for such independent verification when EEStor has developments it is prepared to allow testing on." Mr. Kofman added that "In 2011 we aligned the compensation of all Directors and the CEO with the public announcement of significant technological progress at EEStor. Everyone at ZENN is as eager as shareholders are to get to a public announcement about the progress of EEStor's technology and we consistently encourage EEStor to provide regular public updates on the progress of its technology, but unfortunately both the pace of development of the ultracapacitor technology and any announcement regarding progress are not within the control of ZENN or its Directors. We are well aware of the frustration this can lead to for shareholders, but we have no choice but to respect the NDAs we are subject to. Going forward ZENN will need to strengthen its financial position. It is important to all shareholders that ZENN has the financial resources to ensure that it can capitalize on its investments in EEStor if and when the technology is ultimately developed."

Additional Information

Readers are encouraged to read the Company's audited consolidated financial statements for the year ended September 30, 2011, the corresponding Management's Discussion and Analysis and the Company's Annual Information Form dated January 27, 2012. 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.

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