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Lexus Breaks All-Time Sales Record

3 June 1998

Lexus Breaks All-Time Sales Record for Second Consecutive Month; Division Announces New Sales Forecast

    TORRANCE, Calif., June 2 -- Sales remain strong as the Lexus
Division of Toyota Motor Sales, U.S.A., Inc. posted its best-ever month with
sales of 14,620 in May, an improvement of 100 percent over the same period
last year.
    "At this pace, we expect Lexus to enjoy more than a 40 percent growth rate
in '98 compared with last year," said Bryan Bergsteinsson, Lexus group vice
president and general manager.  "Because of this outstanding growth, the
robust luxury market, the success of the new RX 300 and the continued demand
for popular models such as LS 400 and ES 300, we have raised the Lexus
Division 1998 forecast from 120,000 to more than 135,000.  When we reach this
objective, it will represent a sales increase in excess of 60 percent in just
two years.  This rate of growth is extremely rare in the automotive industry."
    The RX 300 continues its phenomenal pace with sales of 4,317 in May, which
represents an impressive 38 percent increase over last month.  As a result of
the tremendous success of the all-new RX 300, Lexus will increase
manufacturing capacity of the mid-sized luxury sport utility vehicle (SUV).
With the added production, Lexus increases its sales forecast for the RX 300
from the low 20,000s to more than 30,000 for the nine months of sales this
calendar year.
    The redesigned LX 470 prestige luxury SUV continued to be strong with
sales of 949, up 41.4 percent over the same period last year.
    "In their first full month of sales in April, our two new SUVs combined to
outsell the Mercedes M-Class," commented Bergsteinsson.  "In May, the RX
accelerated its pace with a gain of 38 percent.  The luxury market is strong,
and SUVs are in high demand, putting our two SUV entries in the right place at
the right time.  The RX 300 and LX 470 represent nearly 40 percent of Lexus
sales in May."
    The flagship LS 400 luxury sedan posted sales of 1,890, an increase of
26.6 percent over last May.  The hot-selling GS 400 and GS 300 high-
performance sport sedans finished the month with sales of 3,130, up 8 percent
over last month.
    The ES 300 near-luxury sedan holds its pace with sales of 4,023,
representing an increase of 20 percent over last month.  The SC 400 and SC 300
ended the month with sales of 311.