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Subaru Announces Pricing on 2004MY Forester Models; Company Boosts Driving Performance in the Compact SUV Segment With All-New 2.5 XT

CHERRY HILL, N.J., May 23, 2003 -- Subaru of America, Inc., the only car company that offers symmetrical all-wheel drive as standard equipment on every vehicle in its product line, announced today the Manufacturer's Suggested Retail Price (MSRP) for 2004 model year Forester models. The 2004 Forester model lineup includes the 2.5 X, 2.5 XS and the 2.5 XS Premium Package models. In addition, the 2004 model year marks the introduction of the Forester 2.5 XT, enhancing the element of driving performance in the compact SUV segment.

Forester 2.5 XT

Powered by a 2.5-liter turbocharged boxer engine, the Forester 2.5 XT delivers an incredible 210 horsepower at 5600 rpm and 235 lb.-ft of peak torque at just 3600 rpm. The Subaru Active Valve Control System (AVCS), a variable valve timing system, further enhances power at all engine speeds.

The Forester 2.5 XT receives a standard five-speed manual transmission (MT5) or optional four-speed Direct Controlled Electronic Automatic Transmission (4EAT). The Forester 2.5 XT comes with four-wheel disc brakes and a sophisticated four-channel / four-sensor Anti-lock Brake System (ABS), standard on all Forester models. The Electronic Brake-force Distribution (EBD) feature enhances braking performance and stability through optimized brake force distribution between front and rear wheels.

A functional hood scoop, unique design six-spoke 16-inch alloy wheels, body-color side cladding and door handles, and aluminum finish on the standard roof rails provide a distinctive look for the Forester 2.5 XT. The MSRP for the Forester 2.5 XT starts at $24,970, with optional automatic transmission adding $800. Forester 2.5 XT will also be available with a Premium Package that includes standard automatic transmission, leather, and a large moonroof at an MSRP of $27,520.

All 2004 model year Foresters come equipped with a safety brake pedal system designed to yield during a serious frontal impact to help reduce injury to the driver's lower limbs. The 2004 model year 2.5 X, 2.5 XS and 2.5 XS Premium Package models receive a $50 price increase over the 2003 models.

The 2004 model year Foresters meet all Federal Passenger Car Safety Standards. These models comply with Low Emission Vehicle Standards and are certified for sale in all 50 states. The 2004 model year Foresters also feature the peace of mind of standard 24-hour roadside assistance coverage for 3 years or 36,000 miles.

For additional information visit the company's media web site at www.media.subaru.com.

About Subaru of America, Inc.

Subaru of America, Inc. is a wholly owned subsidiary of Fuji Heavy Industries Ltd. of Japan. Headquartered near Philadelphia, the company markets and distributes all-wheel drive Subaru vehicles, parts and accessories through a network of nearly 600 dealers across the United States. Subaru of America, Inc. is the only car company that offers symmetrical all-wheel drive as standard equipment on every vehicle in its product line. Subaru has been the best-selling import wagon in America for the past 20 years, based on R.L. Polk & Company new vehicle retail registration statistics calendar year-end 2002.

                  Manufacturer's Suggested Retail Prices

 Model Description                               2004 MY MSRP*

 Forester 2.5 X
 Forester 2.5 X- MT5                                   $20,895
 Forester 2.5 X - 4EAT                                 $21,695

 Forester 2.5 XS
 Forester 2.5 XS - MT5                                 $23,145
 Forester 2.5 XS - 4EAT                                $23,945
 Forester 2.5 XS w/Premium Pkg - MT5                   $24,145
 Forester 2.5 XS w/Premium Pkg - 4EAT                  $24,945
 Forester 2.5 XS w/Premium Pkg & Leather - 4EAT        $25,695

 Forester 2.5 XT
 Forester 2.5 XT - MT5                                 $24,970
 Forester 2.5 XT - 4EAT                                $25,770
 Forester 2.5 XT w/ Premium Pkg & Leather - 4EAT       $27,520

 *The destination and delivery fee is $550 on all models except in Alaska
 ($685).  Prices shown do not include destination and delivery charges,
 licenses and state or local taxes.  Independent distributor's destination
 and delivery rates may vary; prices are subject to change without notice.