Parent Companies of P.T. Toyota-Astra Motor
Reach Basic Agreement on Reorganization of
Indonesian Joint Venture

Tokyo/Jakarta―P.T. ASTRA INTERNATIONAL Tbk (AI) and TOYOTA MOTOR CORPORATION (TMC), the parent companies of Indonesia-based P.T. Toyota-Astra Motor (TAM), announced today that they have reached a basic agreement on the reorganization of TAM into separate manufacturing and distribution entities. AI President Director Budi Setiadharma, AI Vice President Director Michael Ruslim and TMC Managing Director Akio Toyoda jointly signed a memorandum of understanding on this agreement today in Jakarta.

With the planned reorganization of TAM, TMC will acquire a majority stake of 95% in the manufacturing entity to enhance its operations as a global production, supply and export center of multipurpose vehicles and their gasoline engines. Meanwhile, AI will maintain its majority stake of 51% in the distribution entity to take the initiative in sales operations in Indonesia.

Both AI and TMC will maintain their collaborative relationship, continue active capital investment and simultaneously strengthen sales activities in Indonesia by positioning Indonesia as a significant supply and sales base.

AI and TMC, through continued talks, intend to reach a final agreement on TAM's reorganization by the middle of 2003. Details will be available pending the completion of the related business contracts.