Prius 2005 - Springtime Price increase very minimal

March 11, 2005

SUBJECT: 2005 Prius Mid-Year Price Announcement

On April 1, Toyota Motor Sales will announce new base vehicle pricing for the 2005 Prius which will be effective with vessels arriving on or after April 4, 2005. Since its 2004 launch, Prius has set an unprecedented level of technology, performance and value. With overwhelming customer response, Prius has surpassed the 130,000 total sales mark since it
first went on sale in mid-2000. As Prius leads the way in Toyota’s pursuit for hybrid leadership, your role in providing outstanding
customer service is critical. During this year, the number of hybrid alternatives available in the market will increase to ten vehicles. Customers will have more choices and Toyota must strive to provide the best customer experience of purchasing and owning this technology.

2005 MID-YEAR PRIUS PRICING
The 2005 model year Prius continues to be an excellent value, with a base MSRP of $20,975. The nominal increase of $100 represents just 0.5% of MSRP. Option package content and pricing remains unchanged.

CUSTOMER ACCOMMODATION (“PRICE PROTECTIONâ€) PROGRAM TERMINATION
For the past twelve months, Toyota Motor Sales has extended a goodwill offer (Prius Customer Accommodation Certificate program) to customers entered into the Customer Interest Response System before March 10, 2004 due to unprecedented customer demand for Prius. Last fall, Toyota announced increased Prius production to 100,000 units for 2005. This latest increase marked the second production increase for the second-generation Prius since it launched in October 2003 in the U.S. With this added allocation, Toyota expects to alleviate the delivery delays that some customers have been experiencing. As previously announced, the Prius Customer Accommodation Certificate program will expire on March 31, 2005 so the vehicle must be delivered by March 31, 2005.