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Japanese Lexus Domestic Operations to Commence on August 30, 2005

Lexus Announces Details Concerning Dealers and Services

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Tokyo, May 19, 2005 — Lexus announced today that its dealer network in Japan will commence operations on August 30, 2005, with a product lineup that will initially include the GS and SC vehicle series, with sales of the IS vehicle series scheduled to begin one month later. Lexus also opened central Tokyo’s newly constructed "Lexus Takanawa" dealer facility to members of the press today, introducing features exclusive to Lexus brand showrooms and highlighting the various specialized services they will provide.

In Japan's increasingly competitive luxury vehicle market, the Lexus brand aims to be "a new global premium brand for the 21st century" responsive to the growing number of customers who place more emphasis on individuality and a "sense of the best" than they did in the past.

Lexus is preparing for its Japanese domestic market launch based on its conviction that people, dealer facilities and the "spirit of hospitality" are vital components necessary to successfully provide high-quality products and an unparalleled purchasing and after-sales service experience. Dealers will provide the sense of luxury demanded by the Lexus brand and, in the pursuit of customer-centered service, all dealer facilities throughout Japan will be uniform in exterior and interior design, as well as in functions and other features, to ensure that all customers are consistently provided the same positive impression and welcoming hospitality.

Lexus seeks to provide a sense of security and satisfaction that exceeds customer expectations in all aspects from the initiation of sales talks to after-sales service. Lexus will also aim to offer peak levels of hospitality by creating structures that will allow customers to rely on Lexus during emergencies or at any other time. This will include the Lexus Owner’s Desk, a dedicated Lexus call center, and G-Link, a dedicated Lexus telematics service.

Lexus will begin operations with a nationwide Lexus specialty dealer network of 140 dealers, and by the end of 2005 will expand its network to about 150 dealers, with plans to expand further to 180 dealers in the future.