Statement from Josephine S. Cooper, Group Vice President, Toyota Motor North America Re: DOT's Proposed Federal Fuel Economy Rule to be Attributed to

WASHINGTON, Aug. 23, 2005 -- We applaud the Administration for moving to advance the goals of greater fuel economy and energy security for the nation with the new CAFE rule issued today. The proposed reforms will provide an opportunity to improve the effectiveness of the CAFE program while protecting the economic health of the auto industry.

We are still reviewing the new proposal to evaluate its impact on our product plans and the competitive environment. While we may face some challenges, we will make every effort to meet or go beyond the new targets. As a leader in producing environmentally friendly vehicles, we welcome the opportunity for improvement and think we are in a good position to meet this challenge head-on.

We will cooperate with NHTSA to provide our perspective as they finalize the new rule. Toyota has always met or exceeded applicable CAFE standards and we will continue to place a high priority on engineering fuel efficient vehicles as the new rules phase in.