Subaru Achieves Best-Ever Sales in 2004

-- Best-Ever December Sales, Best-Ever Month for Forester, and Success of the Redesigned 2005 Legacy and Outback Drives the Company's Second Consecutive Record-Setting Year --

CHERRY HILL, N.J., Jan. 4 -- Subaru of America, Inc., today announced that for the second consecutive year, the company recorded an all- time sales record, selling a total of 187,402 units in 2004. Subaru recorded best-ever sales in December, up 27 percent, and the company also achieved its best-ever month for Forester. Additionally, sales of its all-new 2005 Legacy and Outback were up 50 percent from December 2003 and up 12 percent for the year.

"We would like to congratulate our dealers on again delivering best-ever year-end sales for Subaru in 2004," said Fred D. Adcock, executive vice president, Subaru of America, Inc. "We were particularly pleased with the sales of our all-new 2005 Legacy and Outback models that managed to broaden the appeal of the Subaru brand and post a 23 percent gain since the vehicles' June launch. We also experienced a 29 percent increase in Legacy Sedan sales over that same period, due in large part to the popularity of the all-new Legacy 2.5 GT Sedan."

Subaru Legacy recorded sales of 89,453 units, up a strong 12 percent from last year, while Outback accounted for approximately 70 percent of total Legacy sales or 62,594 units. The Subaru Forester posted sales of 58,424 units for the year. Subaru Impreza recorded sales of 32,209 total units, while Subaru Baja recorded 7,316 units. These totals represent a second consecutive record-setting year for Subaru of America, Inc. which has seen year-over-year sales growth in nine of last 10 years.

Subaru recorded its best-ever December in 2004, with total sales of 19,324 units, up 27 percent from December 2003. Subaru Forester also posted a best- ever month, up 24 percent over the prior year with sales of 6,568 units. Subaru Legacy posted a sales gain of 50 percent with unit sales of 9,415, while the Outback accounted for 6,713 units or approximately 71 percent of total Legacy sales. Subaru Impreza recorded 2,749 units, while Baja posted 592 units for the month.

"Even with the challenging sales environment and the increasingly competitive marketplace, Subaru of America, Inc. recorded its best ever revenue of approximately $4.3 billion," said Thomas J. Doll, executive vice president and CFO, Subaru of America, Inc. "This is an exciting time for the Subaru brand, and with the new products in the pipeline including the new Subaru B9 Tribeca making its world debut this month at the North American International Auto Show, we expect to see continued sales growth."

For a complete sales chart and additional information about Subaru of America, Inc. and Subaru vehicles, visit our media website at http://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 in Cherry Hill, N.J., 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 features Symmetrical All-Wheel drive as standard equipment on every vehicle in its product line. For additional information visit http://www.subaru.com/.