Fuji Heavy Industries Introduces the Subaru R1, an All-New Mini Car

Tokyo, December 24, 2004 – Fuji Heavy Industries, Ltd. (FHI), a global manufacturer of transportation
and aerospace-related products and the maker of Subaru automobiles, today announced the introduction ofthe Subaru R1,* an all-new mini car for the Japanese market. The company will begin the sale of the R1
through its Subaru dealerships nationwide on January 4, 2005.
Build on a concept of a unique mini car with streamlined packaging, the R1 model boasts outstanding fueleconomy, a high level of safety features, emotional design and high quality looks, and a comfortable andfunctional interior space. While the new car has been designed as a 3-door mini car that essentially seats 2passengers, it features flexible rear space that can become either two seats or a spacious luggage area.
Sophisticated exterior designs project a smooth, flowing silhouette. Dubbed a one-motion form, theexterior style outlines a flowing eggshell shape from front to rear that has been engineered to effectively
absorb crash impact. Interior designs emphasize the sportiness of the R1 by adopting the color combinationof black and red, as do the sculptured instrument panel designs.
Equipped with a 4-cylinder, DOHC, naturally aspirated engine (658 cc) with an active valve controlsystem (AVCS) as well as the i-CVT (intelligent continuously variable transmission), the R1 has achieved
fuel economy of 24.0 km/L (10-15 mode cycle; 2WD model), ranking it among the most fuel efficient minicars in Japan. The R1 meets Japan’s Ultra Low Emission Vehicle (U-LEV) standards set forth by theMinistry of Land, Infrastructure and Transport (MLIT), which call for the reduction of an additional 50%
of emissions from the levels of the 2005 exhaust emission regulations, and it also achieves the 2010 fueleconomy standards plus an additional 5%, all without compromising on superb driving performance.

* R of R1 indicates the code for Subaru mini cars. 1 symbolizes the concept and size of the car todifferentiate it from the R2 model.

SUBARU R1

Major Features of the R1
1. Design and packaging
Focusing on convenient personal use, packaging of the R1 emphasizes front passenger space that isnot restrained by the concept of a mini car. Optimal roominess for an individual mini car has beenachieved.
An eggshell silhouette, which extends from the front hood to the rear edge of the roof, and curbed sidepanels compose a dynamic and sophisticated form.
The spread-wing grille design, which is reminiscent of aircraft wings, directly relates to the FHI’sorigins as an aircraft manufacturer, while expressing its current applications of Subaru’s advancedtechnology.
Designed to express a stable, high-performance drive, the powerful wheel arches house 15-inch
wheels (155/60R15), the largest size in the mini car category.
Six body colors, which emphasize sophisticated exterior styling, are available.
Interior colors are a combination of black and red, fortifying the individual mini car concept.
Electroluminescent displays are laid out in the 3-dimensional design of the instrument panel meters.
The panel not only emphasizes the sportiness of the car, but it also enables easy reading of it variousmeters.
While the cabin is designed primarily for 2 passengers and a spacious luggage area, its flexible rearspace can accommodate 2 passengers with its 2x2 seating arrangement.
The combination of genuine leather and Alcantara† for the seats and interior are available as an optionthat heightens the feel of polished details and sportiness.
† Alcantara is artificial fabric with a natural suede look, manufactured by Toray Industries, Inc.

2. Safety features
The one-motion form has been engineered to effectively absorb frontal crash impact.
Adopting new ring-shaped reinforcement frames, the R1 achieves high levels of rigidity with low
weight.
Front and rear frames to support bumpers are positioned higher than the floor and are laid out straight,
horizontal to the ground. This layout design helps reduce impact in a collision with a larger vehicle.
Safety pedals release their brackets at frontal crash impact, allowing the pedals to retract so that adriver’s risk of lower-limb injury is reduced.
High stiffness headrests are mounted on the front seats, supporting the front occupants’ heads andhelping reduce the risk of neck injury in a rear collision.
The double pretensioner seatbelt is adopted, which retracts to tighten and take up slack in both theshoulder and the lap belts, holding the occupant more securely in the seat.
The anti-lock braking system (ABS) with Brake Assist, which comes with the electronic brake-force
distribution system (EBD), is standard on all models.

A universal ISO FIX child-seat tether anchor and a lower tether anchor are mounted. (Child seats thatare specifically approved for use with the R1 and the base unit for an ISOFIX child seat must bepurchased separately.)

3. Engine and Suspension
The R1 is equipped with an in-line, 4-cylinder, DOHC, 16-valve engine with the active valve controlsystem (AVCS). The naturally aspirated DOHC engine excels in performance at practical driving
speeds as well as in fuel economy.
An independent strut-type suspension ensures a smooth, accommodating drive.

4. Environmental considerations
The combination of an electronic throttle control, AVCS, and i-CVT not only provides a powerful,smooth drive, but also achieves superb fuel economy.
The AWD system with its viscous coupling unit features a lightweight, compact transfer case, as well
as a highly rigid aluminum case in its rear differential unit. By minimizing weight compared to the2WD model, FHI engineers have improved fuel economy on the AWD model.
The R1 is certified as an Ultra Low Emission Vehicle (U-LEV) because the model’s emission level is50% less that 2005 exhaust emission regulations. It also meets 2010 fuel economy standards plus anadditional 5%.
Mounted with the fuel-efficient engine and i-CVT, the R1 provides an energy-conserving drive while
delivering smooth acceleration. It also comes with the Info-Eco mode, which displays fuel economy
information and actively promotes fuel-saving driving patterns.

5. Convenience and other functions
Side door hinges move flexibly toward the front and allow a larger door opening for easy entry andexit.
A seat-lifting dial design makes adjusting to the optimal driving position easy.
The front passenger seat back folds forward, and its flat back can be used as a table. The rear seat canalso be folded flat. When the passenger seat is folded flat, it is on the same level as the rear luggage
deck, which allows long cargo to lie flat in the cabin.
A 20-cm deep sub-trunk space is available under the rear luggage deck.

[Sales target]
800 units/month (in Japanese market)

Suggested retail prices including consumption tax(Pre-tax prices in parentheses)
Models:drive system

SUBARU
R12WDtransmission

Price(Yen)
1,260,000 (1,200,000)< 1,233,750 (1,175,000) 2>

i-CVT
AWD

1,369,200 (1,304,000)< 1,342,950 (1,279,000) 2>

i-CVT (intelligent continuously variable transmission)
A dual SRS airbag system is standard on all models.
1) Silky white pearl: add ¥15,750 (including consumption tax)
2) Price without a car audio system
Add ¥5,250 for the 2WD cold weather specification model.

Body colors
Titanium gray metallic
Amethyst gray metallic
Topaz yellow
Silky white pearl1
Berry red metallic
Obsidian black pearl