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Toyota Responds to CARB Emissions Situation

14 December 1998

Toyota Responds to CARB Emissions Situation

    TORRANCE, Calif., Dec. 11 -- The following statement from
Toyota Motor Sales (TMS), USA, Inc., may be attributed to Jim Olson, TMS
senior vice president, external affairs:

        "Toyota has been discussing the matter of OBDII compliance with the
    California Air Resources Board (CARB) for several months and we sincerely
    regret that CARB has chosen to break off discussions instead of continuing
    negotiations.  The facts are as follows:

        * This matter involves a dispute over the computer that monitors the
          evaporative emissions control systems of the vehicles in question;
          none of the vehicles pose an emission threat to the environment.

        * Toyota met with CARB before development of the OBDII system and
          implemented CARB's guidance; we firmly believe that these vehicles
          operate properly and comply with all levels of CARB regulations  --
          including the OBDII regulation.

        * During the 'in-use' evaluation of our vehicles, CARB conducted tests
          beyond those specified in their requirements and regulations.

        * We contend that no regulatory agency should be allowed to engage in
          after-the-fact re-interpretation of a regulation.

        * A chronology of actions:
          -- Late 1991:  CARB institutes evaporative OBDII regulations
          -- Mid 1995: Toyota's evaporative OBDII system approved by CARB
          -- August 1997:  CARB tests Toyota vehicles and questions OBDII
             performance
          -- August 28:  Toyota files suit in California Superior Court for
             OBDII rule interpretation
          -- September 2:  CARB begins formal recall process
          -- December 11:  CARB begins administrative review process

        Toyota and Lexus vehicles have the best in-use emission performance of
    any automaker's products.  We are proud of our record as an auto industry
    environmental leader and stand ready to resume negotiations with CARB."