Fuji Heavy Industries Concludes Sales Agreement with German Diesel Engine Manufacturer, Farymann Diesel GmbH

-- Farymann-made new diesel engines for a host of industrial machines will be sold worldwide as Fuji Heavy's Robin DX engine series --

Tokyo , March 27, 2001-- Fuji Heavy Industries Ltd. (FHI) , a global manufacturer of transportation and aerospace-related products and the maker of Subaru automobiles, announced today that it has concluded an agreement that the company will market small single-cylinder diesel engines developed by Farymann Diesel GmbH for use with industrial machines and equipment. The new diesel engine series, dubbed the "Vector" series, will join FHI's well-known Robin engine family as the Robin DX series and be sold globally through FHI's sales channels.

The Robin DX series consists of two types of air-cooled, single-cylinder three-valve diesel engines: the DX27X (displacement: 265cc; maximum output: 3.9 kW / 3,600 rpm) and the DX33X (displacement: 330cc; maximum output: 5.3 kW / 3,600 rpm). Both diesel models feature flexibility as well as compatibility with other general-purpose gasoline engines used with various industrial machines and equipment. This compatibility allows manufacturers of such machines to install the DX series engines as their OEM engines without changing or modifying their designs.

The move to establish the cooperative relationship with Farymann constitutes another step for FHI to solidify the Robin brand with quality products. At the same time, FHI expects the relationship will strengthen both companies' global service network and their support to industrial machine manufacturers.

The new diesel engines will debut at stands of both FHI and Farymann at the Bauma 2001 26^th International Trade Fair, the largest trade show of construction machinery and equipment, to be held in Munich, Germany, between April 2 and 8, 2001.

[About Fuji Heavy Industries Ltd. (FHI)]
FHI is a technologically innovative manufacturer of a wide range of transportation and aerospace-related products and equipment, including the highly distinctive Subaru automobiles; buses, railcars, and aircraft; and a variety of diesel and gasoline engines for industrial machines. FHI (TSE:7270) posted consolidated net sales of 1.3 trillion yen and a net income of 31 billion yen in the fiscal year ended March 31, 2000.

[About Farymann Diesel GmbH]
Established in 1947, Farymann has been producing single-cylinder diesel engines mainly for industrial machines and construction equipment as well as generators and pumps for boats and other marine applications. The company is located in Lampertherim, Germany.