�@Fuji Heavy Industries, Ltd. (FHI), a global manufacturer of transportation and aerospace-related products and the maker of Subaru automobiles, today announced its new mid-term management plan, entitled the Fuji Dynamic Revolution-1 (FDR-1). Covering the fiscal years ending March 31, 2003 through 2007, the FDR-1 consists of FHI's basic management vision, as well as its new policies, product and brand strategies, and specific financial and operational goals.

�@With FHI's principal vision stated as an aim to be a global player with premium brands, the FDR-1 calls for specific targets within that greater goal: develop technology that translates into moving experiences for its users; provide high-value premium products in view of the total value chain; offer the best products, sales, and services within brand categories; and secure a highly profitable corporate structure.
�@In addition, the plan makes clear that FHI will focus on automobile operations as its core business, and it reorganizes the company structure as it functions to change FHI's corporate culture accordingly. As for non-automotive divisions, the company will discontinue certain unprofitable operations, select other promising growth divisions and make them independently operating internal companies, and concentrate its management resources on growth areas.

�@By the end of the fiscal year ending March 31, 2007, FHI plans to increase sales to \1,840 billion, a 35 percent jump from sales in the fiscal year ended March 31, 2002, while it aims to achieve operating income of \110 billion (up 24 percent), net profit of \57 billion (up 88 percent), and worldwide sales volume of 760,000 units (up 37 percent).

�@As FHI's core business, the SUBARU Automotive Business Unit will set up a cross-functioning SUBARU Strategy Development Division for the planning of future growth and innovation. With driving, safety, and environment as the foundations of Subaru's product development strategies, the Automotive Business Unit will enhance its product portfolios with innovative designs, new platforms, and next-generation hybrid power sources. The auto maker will also promote optimal production capability and sales networks in Japan and the U.S. in order to improve FHI's new value chain.

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