（ July 31,2006 ）
Fuji Heavy Industries Ltd.

<Reference for the 1st Quarter of FY2007 Consolidated Financial Results>

(in 100 millions of yen)
(in thousands of units)
  ACTUAL RESULTS
1st Quarter of FY 2006
Apr.2005 to Jun.2005		 ACTUAL RESULTS
1st Quarter of FY 2007
Apr.2006 to Jun.2006		 FORECAST
FY2007
Apr.2006 to Mar.2007
Net Sales
Domestic
Overseas		 2,999
1,292
1,707		 3,295
1,213
2,082 		 9.9%
△ 6.1%
 21.9%		 15,500
6,400
9,100		 5.0%
5.9%
4.3%
Margin Percentage
Operating income
0.4%
12
3.3%
108		 834.7
3.2%
500		 △ 14.3%
Margin Percentage
Ordinary income
0.1%
4
2.9%
96 		-
3.2%
500		 6.9%
Margin Percentage
Net income
-
△ 12
1.4%
46		 -
1.9%
300		 92.2%
Analysis of
increase/decrease
in operating income		   Gain factors
Foreign exchange
Increase in sales mix
Decrease of expenses and others
Reduction in costs		 52
31

16
11

Loss factors
Increase in R&D expenses 14
Gain factors
Increase in sales mix
Reduction in costs		 107
27

Loss factors
Increase of expenses and
others
Increase in R&D expenses
Foreign exchange
96
71
50
Exchange rate YEN/US$ 107 115 110
Capital investment 95 87 930
Depreciation and amortization 125 146 605
R&D expenses 97 111 540
Interest bearing debt 4,124 3,835 3,700
Performance of
operation		   Net sales to increase
Net income to increase		 Best net sales
Net sales to increase
Net income to increase
Domestic sales units
Small Cars
Minicars		 50
19
31		 45
16
29		 △  8.9%
△ 13.5%
△  6.1%		 264
97
167		 14.5%
△ 0.8%
25.8%
Overseas sales units
North America
Europe
Others		 71
43
12
16 		79
47
16
17		 11.7%
7.9%
32.5%
6.6%		 347
220
65
62		 1.8%
4.9%
1.0%
△ 7.3%
Total sales units 120 124 3.2% 611 6.9%

* Figures of Total Sales are the sum of retail sales units of the Japanese subsidiary dealers, wholesale units of the overseas subsidiary distributors, and wholesale units of FHI to other distributors/dearlers.
copyright (c) FUJI HEAVY INDUSTRIES Ltd. 2007 All Rights Reserved.