Fuji Heavy Industries and Saab Continue Partnership with New Cross-over Vehicle Alliance

Tokyo, Japan, July. 09, 2004 - (JCN Newswire) - Fuji Heavy Industries
Ltd. (FHI), the Japanese auto manufacturer of Subaru vehicles, and
Swedish automaker Saab Automobile AB (Saab), a wholly-owned subsidiary
of General Motors Corp. (GM), agreed on collaboration for a new
crossover vehicle. 

The project represents an expansion of the cooperation between FHI and
Saab that was initiated last year with Saab vehicle sales through select
Subaru dealer outlets in Japan, and was followed this year with the
introduction of the Saab 9-2X premium sports compact in the U.S. and
Canadian markets. 

"We continue to see a working relationship between FHI and Saab as a
very natural fit," says Bob Lutz, GM's vice chairman for product
development. "It makes sense for FHI and Saab to work together early in
the development process to deliver their own distinct interpretations of
a sporty and versatile "cross over" product." 

The new collaboration between FHI and Saab will integrate the
development of a new Saab crossover vehicle with FHI's crossover project
for Subaru. Both vehicles will be produced at FHI's U.S. manufacturing
facility. 

"We are pleased that our alliance with GM enables us to continue to work
together with Saab," said Kyoji Takenaka, president and CEO of FHI "This
collaboration provides many benefits such as economics of scale, higher
joint volume for FHI's US manufacturing facility, etc. and most
importantly, creates a win-win situation for both FHI and Saab."


About Fuji Heavy Industries, Ltd.

Fuji Heavy Industries Ltd. (FHI) is one of Japan's leading industrial
manufacturers, best known for distributing automobiles under the Subaru
brand. The Company has a long history of technological expertise dating
back to its days as an aircraft manufacturer. FHI is recognized
internationally for its all-wheel drive (AWD) and horizontally-opposed
engine technologies as well as its sophisticated, small-size
continuously variable transmission (CVT).
FHI's corporate philosophy is to achieve a perfect balance between
society and its own individuality as a manufacturer. Throughout the
fields of automotive engineering, aerospace, industrial products,
ecology and transport systems, and bus manufacturing and prefabricated
housing, the Company strives to promote full-scale global environmental
preservation through the development of distinctive products under
stringent safety standards.For further information, please visit the
Fuji Heavy Industries, Ltd. home page at: www.fhi.co.jp/
<http://www.fhi.co.jp/> 

Contact
Fuji Heavy Industries, Ltd.
Kazuto Sakamoto
sakamoto@ho.subaru-fhi.co.jp
+81 3 3347 2029