Press Release

January 22, 2007

Isuzu starts a local production of light-duty buses in Uzbekistan

  Isuzu Motors Limited (ISZ) has concluded a contract with Samarkand Automobile Factory LLC (SAF) regarding local production of light-duty buses in Uzbekistan and started its production. Isuzu is the first Japanese-affiliated company that makes inroads into the Uzbekistan market.

  According to the contract, ISZ will supply bus chassis derived from that of a light-duty truck (N-series) to SAF through ITOCHU Corporation. SAF will assemble the light-duty buses using the chassis at its plant and start to sell them under SAF brand in Uzbekistan.

  The annual sales volume for the first year (2007) is projected to be 1,000 units. It is expected to be extended to 3,000 units in 2010. In future, possible sale of the buses to other Central Asian countries (Kazakhstan, Kyrgyzstan, Tajikistan, and Turkmenistan) in addition to Uzbekistan is envisaged.

  In line with the objectives of the mid-term business plan (April '05 thru March '08), Isuzu has been trying to strengthen and expand the overseas CV business. To begin with, Isuzu has taken 100% equity in Isuzu Australia Limited to make it Isuzu's wholly owned subsidiary. Further, Isuzu has established NEWCO's in the existing markets such as Europe (Isuzu Benelux N.V. in Belgium, Isuzu Iberia S.L. in Spain, Isuzu Sales Deutschland GmbH in Germany and Austria, and Isuzu Automotive Europe GmbH, a marketing company based in Germany), ASEAN (Isuzu Malaysia Sendirian Berhad), and Africa (Isuzu Truck South Africa (Pty) Limited in South Africa). Furthermore, Isuzu has penetrated into the newly industrialized countries such as Central America (Isuzu Motors de Mexico R.L. in Mexico) and CIS (Isuzu Automotive Company, Ukraine, and local production at OAO Ulyanovsky Avtomobilny Zavod in Russia) and India. This time, the presence in Uzbekistan is positioned as a part of these sales programs of Isuzu

  Uzbekistan is the world's second largest cotton-producing country with a population of 26,600,000. Being rich in underground mineral resources, the country is one of the promising markets, including the neighboring Central Asian countries, where economic growth is expected in future. These days, the country is putting a great deal of effort in fostering and nurturing the domestic automotive industries.

<Reference>Outline of SAF
Company Name Samarkand Automobile Factory LLC: SAF
Representative Suleyman Urakov
Established October 31, 2006
Location Samarkand, Republic of Uzbekistan
Capital Stock Approx. 27 million U.S. dollars (approx. 3.2 billion yen)
Shareholders UZAUTOSANOAT: 74% and Asaka bank: 26%
Main Business Assembly and Sale of Commercial Vehicles