Subaru Reports Best July Sales in Company's History

- Total Sales Up 13 Percent From Last Year; Forester Sales Hit Record High for Second Consecutive Month -

CHERRY HILL, N.J., Aug. 1 -- Subaru of America, Inc., the only car company that offers symmetrical all-wheel drive as standard equipment on every vehicle in its product line, reported July sales of 18,327 units. This represents a sales increase of 13 percent from July 2002, and is the best July sales in the company's 35-year history. The Forester model line also posted another significant increase reaching a new all-time high for the second consecutive month.

"We are extremely pleased to report the best July sales in our company's history and the second consecutive month of record high Subaru Forester sales," said Fred Adcock, Executive Vice President, Subaru of America, Inc. "We attribute our success once again to the outstanding Subaru dealer organization and the premium value our products represent in the marketplace."

The Subaru Forester recorded an all-time record of 6,353 units, a 14 percent increase from July 2002. The Legacy model line achieved a sales total of 7,720 units, while the Subaru Outback recorded sales of 5,488 units for the month. The Impreza line recorded sales of 3,176 units for July, up 5 percent from the same period last year, while Baja posted 1,078 units for the month.

Enthusiasm and demand for Subaru brand vehicles remains strong, and momentum is expected to continue. Much of the success of Forester sales can be linked to its recently earned distinction of "best small SUV ever tested" by the Insurance Institute for Highway Safety (IIHS), in the most recent series of side impact crash tests. Additionally, customer feedback from the Lance Armstrong "Driven by What's Inside" campaign continues to be positive. The month of July also featured congratulatory ads for Lance Armstrong's 5th consecutive Tour de France victory.

"The entire Subaru family congratulates Lance on his incredible 5-time victory of the Tour de France," said Adcock. "Subaru is a proud believer in Lance Armstrong and all who are driven by what's inside."

For additional information about Subaru of America, Inc. and Subaru vehicles, visit our media website at www.media.subaru.com.

About Subaru of America, Inc.

Subaru of America, Inc. is a wholly owned subsidiary of Fuji Heavy Industries Ltd. of Japan. Headquartered near Philadelphia, the company markets and distributes all-wheel drive Subaru vehicles, parts and accessories through a network of nearly 600 dealers across the United States. Subaru is the only car company that offers symmetrical all-wheel drive as standard equipment on every vehicle in its product line. Subaru has been the best-selling import wagon in America for the past 20 years, based on R.L. Polk & Company new vehicle retail registration statistics calendar year-end 2002.