Toyota to Lease 200 Plug-in Hybrid Vehicles in Japan

Tokyo, June 3, 2009; TOYOTA MOTOR CORPORATION announces it will lease a plug-in hybrid vehicle in Japan in collaboration with local governments selected under the Japanese Ministry of Economy, Trade and Industry's EV & PHV Towns program1, which aims to promote the widespread use of electric vehicles and plug-in hybrid vehicles.

TMC is developing a plug-in hybrid vehicle-based on the third-generation "Prius"- equipped with a lithium-ion battery that can be charged via external power sources such as household electricity. This will be the first time a lithium-ion battery is to be employed in a Toyota vehicle for propulsion. Starting at the end of 2009, TMC plans to lease approximately 200 of the vehicles to designated users such as government ministries, local governments and corporations.

A plug-in hybrid vehicle operates as an electric vehicle when used for short distances and can operate as a conventional hybrid vehicle when used for medium to long-distance trips. This means it can be used regardless of remaining battery power or availability of battery-charging infrastructure in place. Furthermore, plug-in hybrid vehicles are expected to achieve higher fuel efficiency than conventional hybrid vehicles, limit consumption of fossil fuels, reduce CO2 emissions and atmospheric pollution, and, by charging with off-peak electricity, promise a more economical vehicle powering solution.

TMC believes that, in response to the diversification of energy sources, plug-in hybrid vehicles are currently the most suitable environmentally considerate vehicles for widespread use. TMC therefore intends to encourage the marketing of plug-in hybrid vehicles while introducing a total of 500 vehicles globally-primarily to fleet customers-to further use and understanding of the vehicles. TMC will introduce approximately 150 vehicles in the United States, as well as more than 150 vehicles in Europe, including 100 in France. TMC is also considering introducing plug-in hybrid vehicles in the United Kingdom, the Netherlands and Germany.

TMC has positioned hybrid technologies as core environmentally considerate vehicle technologies and is using them in the development not only of plug-in hybrid vehicles but also electric vehicles and fuel-cell hybrid vehicles. TMC will continue its efforts to achieve sustainable mobility by developing and putting into practical use these next-generation vehicles, which are hoped to contribute to reducing petroleum consumption, reducing CO2 emissions and responding to the diversification of energy sources.

About Toyota

Supported by people around the world, Toyota Motor Corporation , has endeavored since its establishment in 1937 to serve society by creating better products. Today, the Company manufactures vehicles and parts at 53 production sites in 27 countries and regions around the globe and is an active member in the communities it serves. In fiscal 2008, ended March 31, 2008, the Toyota Group sold approximately 8.91 million vehicles in 170 countries and regions under the Toyota, Lexus, Daihatsu, and Hino brands.