Subaru of America, Inc. Strengthens Field Operations -- Company Appoints New Leadership; Postures for Sales Growth --

CHERRY HILL, N.J., June 1 -- Subaru of America, Inc. today announced that it has strengthened its field operations in the U.S. with new executive appointments. The company has set its sights on breaking the 200,000-unit sales mark this year with the incremental volume of its first- ever, seven-passenger vehicle, the 2006 Subaru B9 Tribeca now arriving in dealer showrooms.

"To support its growth targets, Subaru is looking to further strengthen its field operations and sales network," said Kunio Ishigami, chairman, president and CEO, Subaru of America, Inc. "We are tirelessly evaluating our operations to continue to enhance the Subaru purchase and ownership experience. These executive appointments provide us with the leadership necessary to reach our growth objectives for the vitally important US market."

Hiroshi Kamagami was appointed vice president of market development for Subaru of America, Inc. (SOA). In this position reporting to executive vice president Fred Adcock, he is responsible for market development strategies for the company. Mr. Kamagami was appointed to this position from vice president of sales and marketing coordination for SOA. Prior to joining SOA in February of 2004, he was the manager of the North American Sales and Marketing Department for Fuji Heavy Industries, Ltd. (FHI). From 1989-1995 Mr. Kamagami served as marketing director for Subaru Canada, Inc. Mr. Kamagami joined FHI in 1983 and has since held a number of positions. He worked in the finance department, was an FHI management trainee in SOA's Mid Atlantic Region based in Maryland, and served in the Asia Oceania Latin America Sales and Marketing Department. Mr. Kamagami graduated from Chuo University in Tokyo, Japan.

Tony Graziano will lead operations at Subaru Central Region as the new regional vice president. Prior to this appointment, Mr. Graziano was regional vice president of the Subaru Mid-America Region and the Subaru Penn-Jersey Region. Prior to joining Subaru of America, Inc. in 1998 as regional sales manager, Mr. Graziano spent 13 years at American Honda Motor Co., Inc. where he held a variety of positions for both field and corporate offices in areas of district sales, sales training, management and merchandising, and marketing. Mr. Graziano holds a bachelor's degree in business and finance from Mount Saint Mary's College in Emmitsburgh, Md.

Mike Hafertepe was promoted to regional vice president of the Subaru Mid- America Region from director of field operations at Subaru of America, Inc. As director of field operations, Mr. Hafertepe was responsible for the company's sales and market development efforts including field and distributor operations, business management and retail environment. Mr. Hafertepe joined Subaru in 2000 as regional sales manager for the Subaru Mid-America Region. Prior to joining Subaru, Mr. Hafertepe spent 14 years with Nissan North America, Inc., where he held management roles in sales, marketing, distribution, field operations and dealer operations. Mr. Hafertepe earned a bachelor's degree in political science and business administration from Augustana College in Rock Island, Ill.

Jim Pernas now heads the Subaru Western Region as regional vice president. Prior to this appointment, Mr. Pernas was the regional vice president of the Subaru Central Region. Mr. Pernas joined Subaru in 1987 as a management trainee and has since advanced through the sales department in a variety of roles including director of field operations for Subaru of America, Inc., regional sales manager at the Subaru Penn-Jersey Region, the market development manager at Subaru Central Region, as well as a number of field positions in sales and parts at the Subaru Mid-America Region. Mr. Pernas holds a bachelor's degree in business administration from the University of Notre Dame.

The Subaru field offices are responsible for all regional operations including distribution of cars and parts, service, local advertising, merchandising, sales incentives and dealer relations within their territories. Subaru has five regional offices serving five regions of the U.S.:

   - Subaru Central Region        Aurora, Colo.
   - Subaru Mid-America Region    Itasca, Ill.
   - Subaru Penn-Jersey Region    Westampton, N.J.
   - Subaru Southeast Region      Austell, Ga.
   - Subaru Western Region        Portland, Ore.

"Subaru is poised for growth," said Mr. Adcock. "In addition to our strengthened field operations, we have an outstanding product lineup that includes a combination of style, performance, quality and value that is second to none."

In 2004, Subaru set an all-time sales record with 187,402 units. Through May of this year, Subaru sales were up five percent. The company anticipates sales in 2005 to exceed the 200,000-unit milestone.

Within one year, Subaru is delivering to market completely redesigned Legacy and Outback models, a new Forester and Impreza, and the new outstanding flagship for the brand, the Subaru B9 Tribeca.

"We have the right product to reach our sales milestone. We have an outstanding dealer organization that is prepared for this challenge and shares in our enthusiasm for the future of Subaru," said Mr. Ishigami. "The opportunity is at hand and we will deliver."

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 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/.