Subaru of America, Inc. Shatters June Sales Records - Outback Sales Are Best Ever

    - Total Sales Up 24 Percent From 2000; Best Monthly Total Since 1987;
                        Impreza Sales up 113 Percent -

    CHERRY HILL, N.J., July 3 Subaru of America, Inc. (SOA), a
pioneer of crossover all-wheel drive vehicles designed for the active
lifestyle, achieved its best June ever with total sales of 17,733 units.  The
total represents an impressive 24% increase from June 2000 and represents the
brand's fourth consecutive month of year-to-year total sales increases.
Overall, Subaru sales are up 7% from the same period in 2000.
    "June was another tremendous achievement for Subaru, with record sales for
Outback teamed with strong demand for Forester.  The redesigned Impreza lineup
continues to exceed expectations, achieving its highest sales total in more
than 7 years," said Fred Adcock, Executive Vice President, Subaru of America,
Inc.  "We look forward to even greater success throughout the second half of
2001."
    Subaru Outback established a new all-time record with 6,867 units posted,
pushing total Legacy sales to their highest level since December of 1996.
Subaru Forester finished the month with 4,915 units recorded, surpassing last
year's totals by 5%.  Subaru Impreza continued its strong sales momentum with
3,571 unit sales, up a whopping 113% from 2000 totals for the same period and
the model line's best June since March of 1994.

    About Subaru of America, Inc.
    Subaru of America, Inc. is a wholly owned subsidiary of Fuji Heavy
Industries Ltd. of Japan.  Subaru pioneered the concept of the passenger
car/sport-utility vehicle with the introduction of the Subaru Outback, the
"World's First Sport Utility Wagon." The Subaru Legacy is the best selling
All-Wheel Drive car sold in America, based on the Polk Company retail
registration statistics as of 12/31/00.
    Headquartered near Philadelphia, the company markets and distributes
Subaru vehicles, parts and accessories through a network of 582 dealers across
the United States.  All Legacy and Outback models sold in the United States
are produced at the Subaru-Isuzu Automotive Inc. manufacturing plant near
Lafayette, Ind.  Over the past eight years, the company has achieved year-
over-year retail sales increases thanks to its popular line of car-based sport
utility vehicles, and is among the fastest growing brands in the automobile
industry.

    CONTACT:  Rob Moran of Subaru of America, 856-488-3326, or
rmoran@subaru.com.