On February 4th, we released our financial results of 3rd quarter ending March 2008. With the effect of the new car sales volume increase and the foreign exchange gain owing to depreciation of yen, revenue and profits increased year on year basis except Net Income. However, we do not change the figures of Consolidated Operating Plan of this fiscal year (FYE 2008 March) as reported on October 31st considering the trend of appreciating yen.

FYE March 2008 Consolidated Statements of Income and Plan (100million yen)

	Actual Results 9months FYE March 2008	Plan FYE March 2008
Net sales	11,053	15,600
Operating Income	366	400
Ordinary Income	327	350
Net Income	179	170
FHI Exchange Rate	¥118/$	¥115/$

As stated in our long-term management vision, Fuji Heavy Industries Ltd. eager to be "A compelling company with strong market presence". In other words, when it comes automobiles in Japan, we want people to think of Subaru first.
One year has passed since we released the New Mid-term Business Plan based on this vision.
The New Mid-term Business Plan has five major emphases. 1.To provide a distinctive Subaru experience for drivers and passengers. 2.To increase sales globally. 3.To strengthen competitiveness in quality and cost. 4.To also grow through the business alliance with Toyota. 5.To grow the level of employee competence and so enhance the organization. Now we dedicate all our strength to accomplish our targets.

Business environment is more challenging than we supposed one year ago, because of appreciating yen, material price raise and uncertainty over the economic conditions not only in the United States but also other area of the world.
On the other hand, the new car sales such as Impreza and Forester realized distinctive Subaru are growing overseas market, especially in developing countries. In addition, we have been going ahead the cost reduction. With these efforts, we will accelerate the speed for recovery of our profitability.

We continue our efforts for long-term growth path. I appreciate your support and expectation for our company.

Ikuo Mori
President and CEO