For Immediate Release:

Isuzu Motors Limited
July 9, 2004

Tokyo, July 9, 2004 - Isuzu Motors Limited (TSE code: 7202, hereinafter 'Isuzu') will transform all the local manufacturing affiliates in Thailand as Isuzu's consolidated subsidiaries. The move, which is aimed at reinforcing manufacturing capabilities and strengthening Isuzu's consolidated operations, will involve raising Isuzu's equity stake in some of the local affiliates.

In July and September, Isuzu will raise its capital in Isuzu Motors Co., (Thailand) Ltd., IMCT, a manufacturing entity specializing in the assembly of Isuzu vehicles, by injecting a new capital of 7.0 billion THB (approximately JPY 18.5 billion). The capital increase will raise Isuzu Group equity in IMCT to over 70% from current 49.8%, making IMCT a consolidated company of Isuzu Motors Limited in Japan.

By the end of September 2004, Isuzu will have IMCT integrate businesses and assets of Isuzu (Thailand) Co., Ltd., which currently oversees the local manufacturing operations as a consolidated subsidiary of Isuzu Motors. When IMCT completes the integration of Isuzu Thailand, the local manufacturing oversight function will be reinforced. The results will be further improvement in product competitiveness and greater management efficiencies.

As the result of IMCT becoming a fully consolidated entity of Isuzu, other local entities will also become Isuzu's consolidated subsidiaries, i.e., engine manufacturing affiliate, Isuzu Engine Manufacturing Co. (Thailand) Ltd (IEMT), and a stamping and die-making company, Thai International Die Making Co., Ltd. (TID). Concurrently, the equity stake owned by Isuzu Group companies in Isuzu Technical Center of Asia Co., Ltd. will be raised to 100%, and Isuzu Motors will accelerate the transfer of engineering functions from Japan to Thailand.

Sales and distribution of Isuzu vehicles in the domestic Thai market and export of Isuzu vehicles from Thailand to other markets will continue to be handled by Messrs. Mitsubishi Corporation. Isuzu will strengthen our business collaboration with Mitsubishi to expand Isuzu vehicle sales.

For the past twenty-one years in a row, Isuzu has been the market leader in the Thai commercial vehicle market. Isuzu pickup has been the top selling truck for the past eight years. In 2003, Isuzu pickup truck renewed the sales record, posting 124,000-unit sales with a market share of 40%. Isuzu transferred the entire pickup truck operations from Japan to Thailand, and began exporting the pickup trucks from Thailand to all the global markets last year.

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