Subaru of America, Inc. Posts Best July Ever

   Total Sales Up 7% From Last Year; Best-ever July for Legacy and Impreza

    CHERRY HILL, N.J., Aug. 1 Subaru of America, Inc. (SOA), a
pioneer of crossover all-wheel drive vehicles designed for the active
lifestyle, announced today record sales for the month of July, with 16,105
total units posted.  Overall Subaru sales are up 7% from 2000 totals for the
same period.
    "Once again, Subaru continues to achieve strong sales gains in a
challenging market -- our fifth consecutive month of overall year-to-year
total sales increases and another record month," said Fred Adcock, Executive
Vice President, Subaru of America.  "The runaway sales success of Impreza and
recently introduced 2002MY Legacy and Outback lineup have cemented a firm
foundation for continued growth in the third quarter."
    Sales of Subaru Legacy established a new record for the month with
8,145 units posted, up 2% from last year's totals.  Legacy sales were
bolstered by continued demand for the award-winning Subaru Outback, up 10%
with 6,214 units posted.  Impreza maintained its remarkable sales success, up
266% and 39% respectively from 2000 totals for the same period.  Impreza sales
were fueled by the incredible enthusiasm for Impreza WRX, praised by both
enthusiasts and the automotive press for its unique combination of performance
and all-wheel drive control.  Subaru Forester recorded a total of 4,750 units,
down 10% from last year.

    About Subaru of America, Inc.
    Subaru of America, Inc. is a wholly owned subsidiary of Fuji Heavy
Industries Ltd. of Japan.  Subaru pioneered the concept of the passenger
car/sport-utility vehicle with the introduction of the Subaru Outback, the
"World's First Sport Utility Wagon(R)."  The Subaru Legacy (including Outback
models) is the best selling All-Wheel Drive car sold in America, based on the
Polk Company retail registration statistics as of 12/31/00.
    Headquartered near Philadelphia, the company markets and distributes
Subaru vehicles, parts and accessories through a network of 582 dealers across
the United States.  All Legacy and Outback models sold in the United States
are produced at the Subaru-Isuzu Automotive Inc. manufacturing plant near
Lafayette, Ind.  Over the past eight years, the company has achieved year-
over-year retail sales increases thanks to its popular line of car-based sport
utility vehicles, and is among the fastest growing brands in the automobile
industry.