Lexus Introduces Two New IS 300 Models

IS 300 SportCross and New Five-Speed Manual Transmission Sport Sedan to Arrive
                                  In August

    TORRANCE, Calif., July 16 A year after the successful
launch of Lexus' first compact sport sedan, the luxury carmaker will introduce
two new versions of the IS 300 for 2002: the versatile IS 300 SportCross and
an IS 300 sedan featuring a five-speed manual transmission.  Both new IS 300
models will be available next month.
    The Lexus IS 300 sedan, currently on the market, offers a compelling
challenge to European sport sedans, packaging a high-performance powertrain,
rear-drive chassis layout, and a sports-car inspired interior in a taut,
wedge-shaped body.  For 2002, the manufacturer's suggested retail price (MSRP)
for the automatic sedan remains at the current price of $30,805.
    Lexus will offer the 2002 IS 300 sedan equipped with the five-speed manual
transmission as a separate model that will also feature slightly firmer
suspension tuning than the automatic model.  MSRP for this new model will be
$29,435.  The crisply shifting five-speed manual transmission will satisfy
drivers who prefer more control over the 3.0-liter inline six-cylinder
engine's broad power band.  The IS 300 engine, also shared with the larger GS
300 performance/luxury sedan, produces 215 horsepower at 5,800 rpm and
218 lb.-ft. of peak torque at 3,800 rpm.  The engine delivers both high-
revving power and strong low-end and mid-range torque, due in large part to
Variable Valve Timing with intelligence (VVT-i).
    Lexus expects to sell 1,600 during the remainder of 2001 with a projected
4,800 units sold in the following years.

    Younger Buyers
    "When we introduced the IS 300 for 2001, we promised that we'd offer a
manual transmission model for 2002, and we're fulfilling that promise," says
Lexus Group Vice President and General Manager Denny Clements.  "The IS 300
has been attracting younger customers to Lexus showrooms, and many of them
have been waiting for a manual transmission."
    Lexus also expects the 2002 IS 300 SportCross to appeal to younger
customers, many of whom have small families or need room for outdoor
activities, such as mountain biking.  The SportCross has the same sporty
performance as the sedan and combines a unique, European-influenced design
with the bonus of greater utility from a five-door body style.  The rear
tailgate, split fold-down rear seatback and fold-down front passenger seatback
allow the SportCross to carry long or oddly shaped items that might not fit
easily in conventional sedans.  Because it is based closely on the IS 300
sedan, the IS 300 SportCross avoids some of the typical styling cues that
define conventional wagons.
    "Like the IS 300 sedan, the IS 300 SportCross was initially designed for
the European market, and there is a sizeable -- and vocal -- portion of our
customer base that appreciates that we've brought these models to the U.S.
with no compromise in design or performance," says Clements.  Lexus plans to
sell approximately 5,000 SportCross models annually.  Base MSRP for the
innovative, new IS 300 SportCross will be $32,305.

    Not A Sedan, Not A Wagon - Something In Between
    The Lexus IS 300 SportCross blurs the lines between body types, offering a
new silhouette that admittedly places unique design ahead of maximum utility.
    "We wanted to preserve the image of dynamic performance with the IS 300
SportCross," says Nobuaki Katayama, chief engineer for the car.  "We felt that
a conventional wagon body would detract from that image, and on the other hand
we also knew that IS 300 customers were less inclined to require the full
utility of a boxy shape."
    The IS 300 SportCross uses the hood, front fenders and front doors from
the IS 300 sedan.  The roof, rear quarter panels, rear doors and rear side
glass are all unique to the SportCross.  The tailgate area shares no parts
with the sedan, but does feature the same taillight design.  A subtle rear
roof spoiler adds a touch of flair to the car's profile.
    Sharing the same engine and five-speed automatic transmission as the IS
300 sedan, the SportCross also features the racing-inspired E-Shift steering
wheel shifting controls, as featured on the IS 300 and larger GS 300
performance/luxury sedan.  The five-speed manual transmission will not be
available in the IS 300 SportCross.

    The Utility Bonus
    The IS 300 SportCross includes several features that will help owners get
the most from its expanded utility, including a tonneau cover to keep
valuables out of site, a luggage box, a cargo area "false floor" to keep small
items hidden, plus a folding passenger seat with a seatback table and rear
power outlet for "tailgating."  A rear wiper/washer will be standard
equipment.  Taking advantage of the extra room in the cargo area of the
SportCross, Lexus upgraded this model's audio system to nine speakers from the
sedan's eight.

    New Safety Technology for 2002
    Like the IS 300 sedan, the IS 300 SportCross will be offered in one high-
content equipment level, with just a few options and option packages
available.  All IS 300 models for 2002 will benefit from new safety technology
and interior detail enhancements.  The standard anti-lock brake system (ABS)
already includes Electronic Brakeforce Distribution (EBD) and for 2002 will
add the Lexus Brake Assist feature.  Brake Assist can determine an emergency-
braking situation, and, if the driver has not stepped hard enough on the brake
pedal to engage the ABS, the system supplements the braking power applied.
    New standard side curtain airbags for 2002 offer supplemental head
protection for front occupants in side impacts.  (Front seat-mounted side
airbags are already standard on the 2001 IS 300.)
    The 2002 IS 300 SportCross and the IS 300 automatic sedan also will offer
the Lexus Vehicle Skid Control (VSC) system as an option in addition to the
standard full-range traction control (TRAC).  A Torsen torque-sensing limited-
slip differential comes with the VSC option and will remain a separate option
for the manual-transmission sedan.
    Inside, all IS 300 models for 2002 get a new electrochromic auto-dimming
rearview mirror with integral compass as standard equipment, while the outside
driver's side rearview mirror also has the electrochromic auto-dimming
feature.
    The available DVD-based Lexus Navigation System features a unique pop-up
screen and easy-to-use remote touch controls that are located between the
driver and front passenger seats.  The system searches routes twice as fast as
Lexus' previous system.  The user can input either a specific address or
search among the database's nearly 800,000 points of interest.  Directions are
provided via a map on the screen as well as from the voice guidance.
    All 2002 IS 300 models will continue to offer the long roster of standard
equipment that makes the 2001 model such a good value in its segment:  17-inch
wheels, low-profile performance-tread tires, automatic climate control, high-
intensity discharge (HID) headlights, and a premium, high-power audio system
with both a cassette player and a single-feed, in-dash, six-disc CD changer.

    A New Look for Lexus
    While the tightly drawn, sharp-edged lines of all three IS 300 models are
like nothing else in the Lexus product line, the grille and headlight
detailing make the car immediately identifiable as a Lexus.  Interior surfaces
blend modern and classic sports car touches, including drilled aluminum pedals
and stainless steel doorsill scuff plates with rubber pads.  The IS 300
includes supportive height-adjustable sport seats as standard equipment.
    A chronograph-style combination gauge cluster inspired by sports watches
sits within the speedometer and gives the IS 300 a unique interior appearance.
The chronograph cluster allowed designers to package eight instrument readouts
within clear view through the standard leather-wrapped, three-spoke steering
wheel.  The instrument panel also includes LCD-type digital odometer and trip
meter displays and an exterior temperature gauge.
    Every IS 300 comes with a 48-month/50,000-mile basic limited warranty with
roadside assistance for 48-months/unlimited miles.  Powertrain and restraint
system coverage is provided for 72 months/70,000 miles.  Corrosion perforation
protection is covered for 72 months, regardless of mileage.