Toyota Builds on the Past, Looks to the Future in 2005 North American Environmental Report

Toyota has released its fifth annual Environmental Report for North America, which describes the company's continued improvements in its environmental performance for the fiscal year 2005. Vowing to be a driving force in environmental sustainability by implementing the most advanced technologies, Toyota made progress managing environmental issues across the life cycle of automobile design, production, sales, distribution and recycling.

"As Toyota continues to grow and invest in North America, we constantly search for new ways to be environmentally responsible in all areas of our operations," said Dennis Cuneo, senior vice president, Toyota Motor North America, Inc. "Every affiliate, team member, associate, dealer and even our suppliers have an important role to play in supporting a sustainable future for us and future generations."

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

*Design and Development: Toyota announced two new hybrid vehicles for 2006 -- the Lexus GS 450h and the Toyota Camry Hybrid.In addition, Toyota continues to exceed U.S. Corporate Average Fuel Economy (CAFE) and Canadian Company Average Fuel Consumption (CAFC) standards for its car and truck fleets and is ahead of federal requirements to meet tailpipe emission standards.

*Manufacturing: Toyota has been working aggressively to meet energy reduction targets that play a key role in reducing greenhouse gas emissions from its operations.Toyota's North American manufacturing operations achieved a 15% energy consumption reduction target per unit of production two years ahead of schedule.Eight Toyota facilities achieved zero landfill (defined as a 95% or greater reduction in landfill waste from 1999 levels).

*Sales and Distribution: Cumulative sales of our gas-electric hybrids the Toyota Prius, Highlander Hybrid and Lexus RX 400h in North America stand at well over 200,000 units.Further, our US sales and distribution achieved our goal to reduce energy usage by 15% ahead of schedule, and were recognized with a Flex Your Power Energy Efficiency Award.In 2004, 82% of all the waste generated by the U.S. operations was diverted from landfills, either by recycling or by using a nonland-based disposal alternative, and our Canadian sales and distribution headquarters reduced the amount of waste it sends to landfills by 85%.

*End-of Life Recycling: Toyota North America has aligned itself with more stringent regulatory trends in Japan and Europe in terms of product end-of-life issues.Striving to achieve a 95% vehicle recovery rate by FY 2015, Toyota also has made a voluntary commitment to minimize the use of certain substances of concern in all Toyota, Lexus and Scion vehicles sold in North America.

Looking to the future, Toyota's business success will depend on how well we meet customer demand. Our customers tell us they will buy our innovative environmental technologies -- providing they meet customer requirements for price and performance.