April 14, 2004

Fuji Heavy Industries to Establish Subaru Sales Network in China
Deals Signed with Local Distributors


  Fuji Heavy Industries, Ltd. (FHI), a Japanese auto manufacturer known for Subaru, today announced that it recently signed exclusive distribution agreements with three automobile enterprises in China, setting out to establish a local sales network for imported Subaru brand cars.

  FHI signed the deals with Ji-Dong Trading Group Limited in Tangshan, Hebei Province; Shanghai Automotive Industry Sales Corp. (SAISC) in Shanghai; and Motor Image China Limited in Hong Kong. Each distributor will be responsible for establishing Subaru dealerships within its given area: Northern area of China for Ji-Dong Trading Group, Eastern area of China for SAISC and Southern area of China for Motor Image China.

  The agreements will help the distributors grow their own auto sales business and give FHI effective means to develop the Chinese market in a short period at minimum cost.

  FHI has set a goal to establish 100 local dealerships and sell some 5,000 units of Subaru cars annually throughout China by 2007.

  The import car market in China is growing steadily in recent years as overall demands for passenger cars continue to expand dramatically. Subaru has set a strategy to establish Subaru brand that is globally recognized image of “a car that pursues advanced driving performance” in the Chinese market. Subaru will focus on offering value-added, high-performance models, imported from Japan, to affluent individuals in the metropolitan areas.

  Since July 2002, FHI has test-marketed two Subaru models -- the Impreza Sedan WRX and the Forester Turbo-- in Guangdong Province through two dealerships of Motor Image China. Based on the findings from the trial and various feasibility studies, FHI believes the newly signed exclusive distribution agreements are the best approach for Subaru to develop its own sales network in China and expand business in one of the foreign markets of the greatest potential.


−Corporate Profile of Ji-Dong Trading Group Limited−
Company Name: Ji-Dong Trading Group Limited
Headquarters: Tangshan, Hebei Province
Representative: Pang Qing Hua
Year Founded: 1994
Paid-in Capital: 105 million yuan (approx. 1.5 billion yen)
Number of Employees: approx. 4,000
Main Business: Automobile dealership, auto parts manufacturing and real estate development
FY2003 Automobile Sales: 80,900 units
−Corporate Profile of Shanghai Automotive Industry Sales Corp.−
Company Name: Shanghai Automotive Industry Sales Corp. (SAISC)
Headquarters: Shanghai
Representative: Ye Yong Ming
Year Founded: 1985
Paid-in Capital: 100 million yuan (approx. 1.5 billion yen)
Number of Employees: approx. 3,000
Main Business: Automobile dealership, transportation, car rental, auto loans and services
FY2003 Automobile Sales: 21,000 units
−Corporate Profile of Tan Chong International Limited*
*Motor Image China Limited is a wholly owned subsidiary of Tan Chong International.
Company Name: Tan Chong International Limited
Headquarters: Hong Kong
Representative: Joseph Ong
Year Founded: 1998
Paid-in Capital: 1.5 billion Hong Kong dollars (approx. 22.5 billion yen)
Number of Employees: approx. 1,000
Main Business: Automobile dealership, mobile phone sales and real estate rental
FY2003 Automobile Sales: 17,000 units (global)



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