Toyota and Mazda Agree to Hybrid System Technology License

Tokyo, Mar 29, 2010; Toyota Motor Corporation (TMC) and Mazda Motor Corporation (Mazda) have reached an agreement on the supply under license of hybrid technology used in the Toyota Prius. Leveraging this agreement, Mazda plans to combine the hybrid system with its next-generation SKY* engine that is currently under development, and develop and manufacture a hybrid vehicle in Japan. Mazda is aiming to commence sales of a hybrid vehicle starting in Japan by 2013.

Positioning response to environmental issues as a management priority, TMC began sales of the Prius, the world's first mass-production hybrid vehicle, in 1997. Since then, over 2.3 million TMC-produced hybrid vehicles have been delivered to customers in over 70 countries and regions.

TMC recognizes the importance of benefiting the environment by encouraging the popularization of its eco-friendly technologies, which are represented by its hybrid systems. Accordingly, TMC has announced that it will consider requests from other companies to supply hybrid technology.

Based on its long-term vision for technology development, Sustainable Zoom-Zoom, Mazda aims to increase the average fuel economy of Mazda vehicles sold globally 30 percent by 2015, compared to its 2008 level. In order to offer all of its customers driving pleasure as well as outstanding eco-friendly and safety performance, Mazda is implementing a Building Block Strategy. Under this strategy, Mazda will enhance the core aspects of its vehicles - including engines, transmissions and weight reduction - and then progressively add electric devices such as idling stop, regenerative braking and hybrid systems.

Through this partnership, each company intends to offer technologies and products with outstanding environmental benefits to as many people as possible.

*Concept name for engines and transmissions that are intended for launch from 2011 onward.

About Mazda

Mazda Motor Corporation started manufacturing tools in 1929 and soon branched out into production of trucks for commercial use. In the early 1960s, Mazda launched its first passenger car models and began developing rotary engines. Still headquartered in Hiroshima in western Japan, Mazda today ranks as one of Japan's leading automakers, and exports cars to the United States and Europe for over 30 years. For more information, please visit www.mazda.com.

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 2009, ended March 31, 2009, the Toyota Group sold approximately 7.56 million vehicles in 170 countries and regions under the Toyota, Lexus, Daihatsu, and Hino brands. For more information, please visit www.toyota.co.jp/en/index.html.