Subaru Announces Mid-Year Price Increase

CHERRY HILL, N.J., Jan. 26, 2004 -- Subaru of America, Inc., the only car company that features Symmetrical All-Wheel Drive as standard equipment on every vehicle in its product line, today announced a mid-year price increase on all 2004 model year Subaru Legacy, Outback, Impreza, and Forester models, effective this month. The MSRP for these vehicles will increase by $125.

  Prices on 2004 model year Baja models will remain unchanged.

  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. For additional information please visit www.media.subaru.com.

                         SUBARU OF AMERICA, INC.
          Model-year 2004 Manufacturer's Suggested Retail Prices

                                                         4-speed electronic
                                         5-speed manual    automatic trans
                                             trans              (4EAT)

   Legacy
   Legacy L Sedan                           $20,020            $20,820
   Legacy L Wagon                           $20,720            $21,520
   Legacy L 35th Anniversary
    Edition Sedan                           $20,820            $21,620
   Legacy L 35th Anniversary
    Edition Wagon                           $21,920            $22,720
   Legacy 2.5 GT Sedan                      $25,220            $26,220
   Legacy 2.5 GT Wagon                      $26,120            $27,120

   Outback Wagons
   Outback Wagon                            $23,470            $24,270
   Outback Limited Wagon                    $27,020            $27,820
   Outback H6-3.0 35th Anniversary
    Edition Wagon                   (Automatic is standard)    $27,220
   Outback H6-3.0 L.L.Bean Edition  (Automatic is standard)    $30,420
   Outback H6-3.0 VDC Wagon         (Automatic is standard)    $32,620

   Outback Sedans
   Outback Limited Sedan            (Automatic is standard)    $26,720
   Outback H6-3.0 Sedan             (Automatic is standard)    $28,920
   Outback H6-3.0 VDC sedan         (Automatic is standard)    $31,120

   Baja
   Baja Sport                               $21,995            $22,795
   Baja Turbo                               $23,995            $24,995
   Baja Turbo Leather Package       (Automatic is standard)    $26,295

   Impreza
   Impreza 2.5 TS Sport Wagon               $18,020            $18,820
   Impreza 2.5 RS Sedan                     $19,520            $20,320
   Impreza WRX Sedan                        $24,620            $25,620
   Impreza WRX Sport Wagon                  $24,120            $25,120
   Impreza Outback Sport Wagon              $19,220            $20,020

   Forester
   Forester 2.5 X                           $21,020            $21,820
   Forester 2.5 XS                          $23,270            $24,070
   Forester 2.5 XS w/ Premium Package       $24,270            $25,070
   Forester 2.5 XS w/ Premium Package
   (includes leather-trimmed
    upholstery)                     (Automatic is standard)    $25,820

   Forester 2.5 XT                          $25,095            $25,895
   Forester 2.5 XT w/ Premium Package
    (includes leather-trimmed
     upholstery)                    (Automatic is standard)    $27,645

*The destination and delivery fee is $550 on all models except in Alaska ($685). Prices shown do not include destination and delivery charges, licenses and state or local taxes. Independent distributors' destination and delivery rates may vary; prices are subject to change without notice.

   Contacts:  Lisa Fleming
              Subaru of America, Inc.
              (856) 488-5093
              lfleming@subaru.com

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