PRESS RELEASES

Zero Landfill

IIHS Test Results

NHRA XPlod

Reusing and Recycling

Firsts and recognition

Toyota Camry
to be produced
at SIA plant

Subaru to use Toyota hybrid system

FHI-Toyota announcement
in PDF format

US Toyota
press release
in PDF

November 29, 2006

Subaru - zero landfill

Subaru Indiana is the first zero landfill auto plant

By Lou Ann Hammond

Subaru is a national wildlife refuge

One of the first words I heard when I reached the Subaru Indiana Automotive plant was kaizen. What does Kaizen mean? It means improvement in a company, real improvement and innovative management practices. How has Subaru improved their automotive plant?

You know that can of garbage in front of your yard every week. The one the garbage man takes to a landfill every week? That garbage can full of trash is more garbage than Subaru sends to a landfill every year.

Subaru calls it Corporate Social Responsibility, but it goes beyond anything any other auto manufacturer has accomplished. In 2002, over 800 acres of SIA property was designated a National Wildlife Federation Backyard Wildlife Habitat, a first bestowed upon an automotive manufacturing site. In 2002, SIA received the International Organization for Standardization (ISO) 14001 Recertification, the cornerstone of the environmental management awards, recognizable worldwide. Subaru’s marketing campaign has been Think, Feel, Drive, but inside Subaru of Indiana Automotive (SIA) their campaign is Reduce, Reuse, Recycle.

Denise Coogan, Manager, Safety & Environmental Compliance, Subaru of Indiana Automotive (SIA), took us through some of the reduction projects that include a 79 percent reduction in solvents, a 61 percent reduction in sludge and a 6,000 gallon annual reduction in oil. These numbers allow Subaru to reduce Toxics Release Inventory (TRI) by 40 percent. The reuse projects are just as impressive; the 33,000 brass lug nuts that Subaru used to throw away now go back to the manufacturer and Subaru gets a small discount because of it. The extra paint that is sprayed when the car is getting painted is skimmed off the tub of water and parking lot stoppers and railroad ties are produced. 35,597 gallons of solvent are reused annually, along with 34 million pounds of packaging material. Solvent recovery system and sludge dryer were the most capital intensive, taking about 7-10 years to recover the expense.

All of this has helped Subaru achieve a 99 percent recycling rate. It’s simple things, such as chipping up 378,000 pounds of wood pallets and used them around the almost 35,000 trees that are on the plant grounds. Terry Jacot, Allegiant Global Services, helped Subaru achieve zero percent landfill in less than two years. In a plant tour, Jacot showed us the styrofoam pieces that are marked and crated to be sent back to Japan. They mark the pieces and try to get five trips out of each piece. The oil caps that are in the oil plugs, are pulled out and sent back. Each piece of refuse is looked at and decided if it will be used in its original form or a secondary form, such as tires being grated up and used in children’s playgrounds. On Allegiant’s website they say, "At the beginning of our program, this manufacturer shipped 23 compacted loads of refuse to the landfill each month, today they ship 2 compacted loads of refuse to a mass burn, energy cogeneration facility."

Even with all the reducing, reusing and recycling there is a small amount of leftover waste. Subaru could take that to the landfill and still have hero status, but they don’t. At a cost to Subaru, they take the waste to Covanta Energy, where Covanta extracts the BTU waste to energy. That’s right; Subaru pays Covanta to create electricity for the city of Indianapolis.

According to Bernie Heile, Director, Sales and Marketing Covanta Secure Services, "Covanta is a waste to energy facility based in Indianapolis. We extract the BTU out of the waste. The waste creates steam, which is turned into electricity. I understand that the average per capita expense for the electricity is measurably lower than cities that don’t do this." According to Coogan, "We send about 3 percent of all our material to Covanta. It is a lot cheaper to send it to a landfill then to pay Covanta to take it, so we pull as much recyclable out of the waste stream as we can."

Derrick Porter, Director of Corporate Communications, Covanta Energy, explains that "there are large boilers with a special grate system. Subaru’s waste goes into the waste to energy (WTE) mixed with household items. This not only reduces landfill, but reduces greenhouse gas (GHG), such as methane. This is Europe and Japan’s disposal method of choice. Some European countries (members of the EU-15) have banned landfilling of raw or biogenic (biodegradable) waste because they generate harmful greenhouse gases (methane) when put in a landfill. In fact, the ash residue from the burning is also used in those countries as aggregate for concrete or roadways, avoiding additional landfill space."

Porter goes on to point out, "The results are that WTE/Covanta provides clean renewable alternative energy that is available continuously. Unlike other renewable energy such as wind power (which may only be available 20-30% of the time), our facilities run 24hrs a day for every day of the year. They can operate as "base load" energy similar to a coal fired plant, however, without the greenhouse gas emissions of a coal plant (and the avoided methane emissions from a landfill). Covanta processes approximately 5% of the county’s waste (15 million tons) and produces a little less than 10% of the countries renewable energy. In fact, EPA concluded in 2003 that WTE produces electricity with less environmental impact than almost any other source of electricity."

According to Tom Easterday, Senior Vice President, SIA, has looked at solar wind for electricity and they have worked with the EPA’s energy star program. Fuji heavy Industries, SIA’s parent company, has a division that specializes in wind power generation and SIA is looking at using that. SIA would have to get permits, but the more important aspect of the wind generation is making sure it fits with their natural wildlife habitat."

Toyota will begin building their Camrys in the SIA plant in 2007, building up to 100,000 when at capacity. The discussions, according to Easterday, have already been had, not only with Toyota but with their suppliers. Toyota is already environmentally conscious, but they will learn more from Subaru.

Kaizen, desu ne.

they pay to have waste made into energy for the city of Indianapolis

November 21, 2006

Subaru Leads Industry in IIHS Test Results

I am pleased to share the outstanding results from this yearís Insurance Institute for Highway Safety (IIHS) awards. The 2007 Subaru Legacy, Forester and Tribeca all earned the TOP SAFETY PICK designation. In fact, Subaru had the most IIHS TOP SAFETY PICK designations of any single automotive brand. The three Subaru models, with available Subaru Vehicle Dynamics Control (VDC), were among only 10 other 2007 TOP SAFETY PICKS in the industry.

We all know how important safety is to Subaru customers. Subaru has long been committed to both active and passive safety in our product. This latest validation from a respected third party such as IIHS confirms our commitment and leadership in this area.

The press generated from past IIHS awards has driven sharp increases in showroom traffic and this time our news is the strongest ever. As of this afternoon, every major television network has run the story listing Subaru on top ñ and nearly 1,000 news articles have already been published. For some highlights of this coverage, please see the attachment to this letter on Subarunet.

To get additional details about the awards and to view video of the crash tests, please visit: HYPERLINK "http://www.iihs.org/" http://www.iihs.org/

Please ensure that your entire sales staff is armed with this information immediately so they can share it with prospects and take advantage of this news. Be sure to fully leverage these awards in your advertising to get the word out.

You can contact your District Sales Manager or your Regional/Distributor Sales and Product Training Manager with any questions.

This has been an exciting year for Subaru, we are on an all-time record sales pace and our products continue to receive award after award. This latest accolade is outstanding news for the Subaru brand and will help us close 2006 in record fashion!

March 29, 2006
NHRA Communications

F5 Fujita and SPT to be title sponsor of pit pass segment on NHRA Xplod Sport Compact Racing Series Telecasts

Glendora, CA— NHRA has announced that F5 Fujita and SPT (Subaru Performance Tuning) will be the title sponsor for the Pit Pass segment of each NHRA Xplod Sport Compact Racing Series telecast on ESPN2 during the 2006 season.

The F5 Fujita/SPT Pit Pass is a behind the scenes look at the pit action from the NHRA Xplod Sport Compact Racing Series. The technically-oriented segment will feature Subaru SPT-ESX Modified owner/driver Ali Afshar. Joining Afshar for the Pit Pass segment will be Julie Stepan, a four-time NHRA Sport RWD class winner.

“We are real excited about being part of this show and bringing the latest innovations and technology to the growing number of viewers,” says Afshar.

NHRA is the premier sanctioning body for sport compact drag racing. It is presenting the 11-race, $2.5 million NHRA Xplod Sport Compact Racing Series at nine tracks across the country from April through October. The series features the largest guaranteed sport compact event purse of more than $27,000 paid out per event. In addition, the series offers a year-end championship fund of $144,000, bonus program payouts near $20,000, along with the most lucrative contingency payout program in the sport at more than $2.5 million.

The series is highlighted by its five championship classes (Pro RWD, Pro FWD, Modified, Hot Rod and Honda Tuning All Motor). In addition, and at all nine of the stand-alone NHRA Xplod Sport Compact Racing Series events, the NHRA Xplod Stylefest showcases a compliment of the lifestyle and entertainment elements synonymous with today’s sport compact scene. More information is available at nhrasportcompact.com.

Headquartered in Glendora, Calif., NHRA is the primary sanctioning body for the sport of drag racing in the United States. It presents 23 national events through its POWERade Drag Racing Series. NHRA has 80,000 members and 140 member tracks. NHRA-sanctioned sportsman and bracket racing series’ provide competition opportunities for drivers of all levels. NHRA develops the stars of tomorrow by offering the NHRA Lucas Oil Drag Racing Series, NHRA Xplod Sport Compact Racing Series, NHRA Summit Racing Series and the NHRA Street Legal Program presented by AAA. NHRA also offers the O’Reilly Auto Parts Jr. Drag Racing League for youth ages 8 to 17.

Contact: NHRA Communications 626-914-4761

Reusing and Recycling

Manufacturing without waste at SIA.

Subaru of Indiana Automotive manufacturing facility in Lafayette, Indiana, is committed to being a world-class leader in environmental performance.

Zero Landfill

Application of this attitude to manufacturing and using ISO 14001 guidelines for environmental management have resulted in zero landfill status as well as a number of environmental firsts by Subaru of Indiana Automotive (SIA).

Altogether, 97 percent of excess/leftover steel, plastic, wood, paper, glass and other materials go to recycling outlets. The remaining 3 percent is shipped to the city of Indianapolis and incinerated to help generate steam.

"Our Backyard is Wildlife Habitat!"

Walking the grounds of SIA in Lafayette, you have to be careful not to disturb the wildlife. Deer, coyotes, beavers, blue herons, Canada geese, rabbits, squirrels, meadowlarks, ducks, and other animals live here in peaceful coexistence with SIA. In fact, part of the SIA property has been designated a wildlife habitat.

Firsts and Recognition

1995 — First to be ISO 9000 Certified (quality management)
1998 — First to be ISO 14001Certified (environmental management)
2002 — First with on-site solvent recovery system that produces dry still bottoms
2003 — Governor's Award for Environmental Excellence in the category of Recycling/Reuse by the Indiana Department of Environmental Management
2003 — First to be designated a Backyard Wildlife Habitat by the National Wildlife Federation
2004 — First to reach zero landfill
2004 — First to dry paint and wastewater sludge on-site
2004 — National Registry of Environmental Professionals award for excellence in Environmental Management in the category of Solid and Hazardous Waste

March 13, 2006
Toyota Motor Corporation
Fuji Heavy Industries Ltd.

Fuji Heavy Industries’ U.S. Plant to Build Toyota Camry

FHI to Develop Toyota Vehicles; Subaru Hybrids to Use Toyota System

Tokyo—TOYOTA MOTOR CORPORATION (TMC) and FUJI HEAVY INDUSTRIES
LTD. (FHI) announced today that the Toyota Camry is to be built at Subaru of Indiana
Automotive, Inc. (SIA), FHI’s North American production base. The two companies
also announced that FHI will develop Toyota vehicles and that they will further
consider the development of an FHI hybrid vehicle based on the Toyota Hybrid
System.

Under this arrangement, SIA, which currently produces the Subaru Legacy, Outback,
Baja and Tribeca on its two production lines, is to produce the Camry for the North
American market with a production capacity of 100,000 units a year starting around
the spring of 2007. The hitherto Subaru production will be consolidated onto one
line; the other line, following modifications that will introduce Toyota production
technology and the Toyota Production System, will be used to produce the Camry.
Along with allowing SIA to achieve an annual production capacity of about 240,000
vehicles, the new arrangement is expected to create about 1,000 additional jobs at
SIA once full Camry production is in place. In joint preparation, the dispatch to TMC
of about 10 FHI production engineers started on Feb. 1

Concerning Toyota vehicle development by FHI, both companies intend to promptly
decide on a project that is expected to involve about 100 FHI engineers. To discuss
development requests from TMC and mid-to-long-term joint product development, as
well as with a view toward mutually advancing the technological development
capabilities of both companies, the dispatch to TMC of about 20 FHI vehicle engineers
started on Feb. 1

As for the development of an FHI hybrid vehicle based on the Toyota Hybrid System,
the two companies agreed that—toward the early realization of an FHI hybrid
vehicle—they would consider from now a detailed framework, including the provision
of Toyota hybrid technology, personnel exchanges and other issues.

Furthermore, both companies recognized the need to continue discussion on a
comprehensive business cooperation framework, made possible through even
stronger ties and geared toward advancing their long-term mutual competitiveness.

Today’s announcement is the result of a memorandum of understanding signed by FHI
and TMC last October stating they would begin looking into the synergic effects of the
shared use of their management resources for research and development and in the
field of production, as well into the synergic effects of supplementing each other’s
technological development.