New York, N.Y. - Toyota's newly published 2004 North American Environmental Report, available today, describes the company's continued improvements in its environmental performance in the 2004 Fiscal Year. Building on the success of the second-generation gasoline-electric Prius, Toyota made progress managing environmental issues across the life cycle of automobile design, production, sales, distribution and recycling.

"Our customers tell us that they are interested in our environmental investments and innovative technologies, provided we meet their price and performance requirements as well," said Hideaki "Harry" Otaka, president of Toyota Motor North America. "That's why we're investing in vehicles that increase efficiency and fuel economy, while lowering emissions," he added. "Ultimately, our goal is to ensure that automobiles continue to power prosperity."

Toyota's Five-Year-Environmental Action Plan lays out goals and targets in five areas, and we are pleased to report the following highlights:

• Design and Development: Toyota announced two new sport utility vehicle (SUV) hybrids that will be launched in 2005: the Lexus RX 400h and the Highlander. These will achieve the performance of an SUV with the fuel economy of a compact car. In addition, Toyota is ahead of the required compliance schedule for certification of its vehicles to the new Tier 2 and LEV II emission standards.
  
  
• Manufacturing: During the past year, our manufacturing plants were able to achieve reductions in energy use, water use, and emissions of volatile organic compounds a full two-years ahead of our 5-year action plan schedule.

• Sales and Distribution: Cumulative sales of the Toyota Prius in North America stand at well over 100,000 units. Further, our U.S. sales and distribution activities were achieved with an overall reduction of 1.8% in GHG emissions - or over 5,600 metric tons of CO2. Vehicle distribution centers in both the U.S. and Canada have achieved ISO 14001 certification/registration and a sixth straight year of 100% compliance with regulations applicable to hazardous materials/dangerous goods.
  
  
• End-of-Life/Recycling: Toyota has made a new commitment to voluntarily phase out the use of certain substances of concern--such as mercury and lead--in all Toyota, Lexus and Scion vehicles sold in North America. The company is also working to achieve a 95% vehicle recovery rate by FY 2015.

To review the full Toyota North America Environmental Report, please visit http://www.toyota.com/about/environment/news/enviroreport.html.

Toyota Motor Sales, U.S.A., Inc.

Toyota Motor Sales, U.S.A., Inc.

Toyota Motor Sales (TMS), U.S.A., Inc. is the marketing, sales, distribution and customer service arm of Toyota, Lexus and Scion in the United States, marketing products and services through a network of 1,427 Toyota, Lexus and Scion dealers in 49 states. Established in 1957, TMS and its subsidiaries also are involved in distribution logistics, motorsports, and research and development.

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