---

Subaru Reports May Sales

2 June 2000

Subaru Announces Strong Sales Figures for May; Brand Posts Best May Total Sales Since 1987, Best Month Since October 1987

    CHERRY HILL, N.J., June 1 Subaru of America, Inc. (SOA)
today announced sales figures for the month of May.  Subaru recorded a sales
total of 15,693 units for the month, an increase of 37 percent from May 1999
sales figures.  Year-to-date totals of 69,054 are up 18 percent from 1999
year-to-date totals (58,322).  This marks the company's best May sales totals
since 1987 and the best sales month since October 1987.
    The Legacy model line led sales with 8,452 units posted, up 42 percent
from May 1999 Legacy sales of 5,934 units.  Outback accounted for 5,860 units
for the month, up 52 percent from May 1999.  Forester posted sales of 5,486
units for the month, an increase of 35 percent from the same period last year
and the best since the model's introduction in CY1997.
    "May 2000 was a great month for Subaru," says Subaru of America, Inc.
Senior Vice President, Sales, Fred Adcock.  "Legacy and Forester continued to
post strong sales with the third-best-ever sales month for Legacy and best-
ever sales for Forester.  We anticipate continued sales growth with the
exciting, new 2001 Legacy Outback H-6, available in October."

    A Tradition of Award-Winning Vehicles:
    The 2000MY Subaru Legacy recently earned the highest rating among seven
midsize four-door cars subjected to 40 mph frontal offset crash tests
conducted by the Insurance Institute for Highway Safety.  The Legacy received
the highest possible rating -- "good" overall evaluation for crashworthiness
-- as well as a "best pick" designation from the Institute.  Additionally,
Subaru Outback and Forester were awarded "Best Bet for 2000 -- Compact Class"
and "Best Bet for 2000 -- Midsize Sport Utility Class" respectively, by Jack
Gillis' "The Ultimate Car Book".

    About Subaru of America, Inc.
    Subaru of America, Inc. is a wholly owned subsidiary of Fuji Heavy
Industries Ltd. of Japan.  Headquartered near Philadelphia, the company
markets and distributes Subaru vehicles, parts and accessories through a
network of 590 franchised dealers across the United States.  All Legacy and
Outback models sold in the U.S. are produced at the company's American
manufacturing plant, Subaru-Isuzu Automotive, Inc. near Lafayette, Ind.
    Over the past eight years, the company has nearly tripled its revenues and
seen its sales increase by nearly 100 percent thanks to its popular line of
car-based sport utility vehicles.  The company is among the fastest growing
brands in the automobile industry and was recently named "Most Improved Car
Company in the World" by the London-based Financial Times Automotive World
Magazine.

    For more information, contact Rob Moran of Subaru of America,
856-488-3326, or rmoran@subaru.com.