FHI to Enter Car Sales Business in South Korea

Tokyo, January 21, 2010 – Fuji Heavy Industries Ltd. (FHI), the manufacturer of Subaru automobiles, today announces that sales of Subaru-brand vehicles will start from April in South Korea working through its local distributor, Subaru Korea Co., Ltd (see profile below).

Subaru Korea Co., Ltd is the company, set up by KOS group (Yongsan-Gu, Seoul, Korea; Chairman, Ho Jeung Hong), will operate sales, distribution and after-sales servicing businesses of Subaru cars.

The imported car market is currently stable growing in the South Korean automobile market. Especially the categories of mid-size sedan and compact SUV, that the Subaru’s product range fits well, rise in popularity. Furthermore Subaru’s authentic driving performance and all-round safety by its unique Symmetrical All-Wheel Drive system will appeal to the Korean market, where mountains are spread nationwide and the temperature range is larger throughout the year. By offering Subaru’s uniqueness, FHI will establish and increase penetration of the Subaru brand in the market.

Starting on April 2010, the available models are the LEGACY, OUTBACK and FORESTER. Subaru Korea has set an initial sales target of 600 units in the first year and aims to increase that number to 3,000 units by 2015. Subaru Korea is in the process of developing its own dealer network and scheduled to open Subaru outlet in Seoul and Pusan at first then expands to the other metropolitan areas in South Korea.

About Fuji Heavy Industries Ltd.

Fuji Heavy Industries Ltd. (FHI), the maker of Subaru automobiles, is a leading manufacturer in Japan with a long history of technological innovations that dates back to its origin as an aircraft company. While the automotive business is a main business pillar, FHI's Aerospace, Industrial Products and Eco Technologies divisions offer a diverse range of products from general-purpose engines, power generators, and sanitation trucks to small airplanes, crucial components for passenger aircrafts, and wind-powered electricity generating systems. Recognized internationally for its AWD (all-wheel drive) technology and Horizontally-Opposed engines in Subaru, FHI is also spearheading the development of environmentally friendly products and is committed to contributing to global environmental preservation.