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Toyota Announces Prices for All-New Hybrid Synergy Drive-Powered 2006

Small Price Adjustment for 2005 Prius Hybrid Sedan

TORRANCE, California -- Toyota Motor Sales (TMS), U.S.A., Inc., announced manufacturer's suggested retail prices (MSRP) today for the all-new gas-electric 2006 Highlander Hybrid mid-size sport utility vehicle (SUV). Toyota also announced a small price adjustment for the Prius gas-electric hybrid sedan. Both vehicles are powered by Toyota's breakthrough Hybrid Synergy Drive powertrain.

The Highlander Hybrid joins the popular Prius sedan, making Toyota the first brand to offer both a passenger car and an SUV with hybrid powertrains. Highlander Hybrid is also the first seven-passenger hybrid SUV in the automotive industry.

The Highlander Hybrid combines a 3.3-liter V6 engine with a high-torque electric drive motor-generator to deliver exhilarating performance, with fuel economy ratings similar to a four-cylinder compact car, and the lowest emissions rating in the mid-size SUV segment.

Highlander Hybrid offers the versatility, refinement, and comfort expected in a mid-size SUV. The Highlander Hybrid will be available in two-wheel-drive and electric four-wheel-drive with intelligence (4WD-i) -- the world's first application of electric four-wheel-drive with intelligence in the non-luxury SUV segment. Other key technology features in Highlander Hybrid include electronic air conditioning and power steering, electronically controlled brakes, and electronically controlled continuously variable transmission.

The Highlander Hybrid will be powered by a new version of Toyota's Hybrid Synergy Drive powertrain specifically developed to meet the load-carrying requirements and performance expectations of mid-size SUV buyers. Its all-new high-speed electric motor operates at a higher speed and delivers more power, producing 268 peak-combined horsepower with a standard towing capacity of 3,500 pounds. Highlander Hybrid provides rapid acceleration with a 0-60 MPH time of just 7.3 seconds for the electric four-wheel-drive with intelligence (4WD-i) and delivers the best fuel economy ratings in the mid-size SUV segment.

The Highlander Hybrid 4x2 carries an estimated EPA fuel efficiency rating of 33 mpg in city driving, 28 mpg on the highway. Its combined city/highway estimated EPA fuel efficiency rating of 30 mpg exceeds most V8 powered SUV's by more than 100 percent and is better than the current EPA average -- 27.1 mpg -- for a compact four-cylinder sedan. The estimated EPA city/highway fuel efficiency rating for 4WD-i models is an impressive 31/27 with a combined rating of 29 mpg. In addition, Highlander Hybrid will be rated as a Super Ultra Low Emissions Vehicle (SULEV). One of the most stringent emissions ratings in the industry, SULEV-rated vehicles emit nearly 70 percent fewer smog-forming emissions than conventionally-powered SUV's.

Like all Toyota SUV's the Highlander Hybrid will come standard with Toyota's Star Safety System, which includes Vehicle Stability Control (VSC), Traction Control (TRAC), Anti-Lock Brake System (ABS) with Electronic Brake- force Distribution (EBD) and Brake Assist (BA). The Highlander Hybrid further enhances the Star Safety System with the addition of the all-new Vehicle Dynamics Integrated Management (VDIM) system. This new system goes well beyond conventional traction and stability controls that simply react to challenging driving conditions. Instead, VDIM anticipates loss of vehicle control in virtually any direction and makes corrections while allowing higher dynamic capability.

Highlander Hybrid provides an impressive array of standard safety technology including driver and front passenger advanced front airbags. Front- seat mounted side airbags include first and second row roll-sensing side curtain airbags. Additional safety features include height-adjustable headrests and three-point seatbelts with pretensioners and belt-force limiters in the front seats. Second- and third-row seats also incorporate height- adjustable headrests and three-point seatbelts in all seating positions.

The exterior styling is freshened with the addition of a new chrome accented front grille, a new front bumper with a wide intake, rear LED tail lamps and chrome license plate garnish. The interior styling adds optitron illuminated gauges featuring a multi-information display.

Like the conventional Highlander, the Highlander Hybrid is equipped with a vast amount of standard convenience features making it a tremendous value. Standard equipment on the base grade Highlander Hybrid includes three rows of seats, defroster-linked air conditioning with a cabin filter, power windows and door locks, deluxe 3-in-1 AM/FM/ETR cassette/CD sound system with six speakers, remote keyless entry, tonneau cover, UV-reduction glass, cruise control, roof rack, and rear privacy glass.

Value is further enhanced with additional standard equipment on the Highlander Hybrid, which is either optional or not available on the conventional Highlander. These added standard features include an eight-way power driver seat with power lumbar support, front-seat mounted side airbags with second row roll-sensing side curtain airbags, 17-inch five-spoke aluminum alloy wheels, in-glass antenna, daytime running lights, tow prep package, HomeLink(R) universal remote control system, engine immobilizer, mudguards, and a cold weather package that includes heated outside mirrors and a windshield de-icer grid. All of this additional standard equipment carries a value of more than $2,300.

With its numerous standard features the base Highlander Hybrid offers one option package which includes a JBL 3-in-1 AM/FM cassette with a six-disc in- dash CD changer and eight speakers in six locations and FM diversity reception, steering wheel audio controls, power tilt/slide moonroof with sunshade, integrated fog lamps, and a color-keyed rear spoiler.

The 4x2 base Highlander Hybrid will carry an MSRP of $33,030. The 4WD-i base Highlander Hybrid will carry an MSRP of $34,430.

In addition to the base grade features, standard equipment on the Highlander Hybrid Limited model includes automatic climate control with air filtration and humidity control sensors, four-way power passenger seat, leather-trimmed steering wheel with audio controls, anti-theft alarm system, wood-grain style interior trim, leather-trimmed shift handle, door scuff plates, and an auto-dimming mirror with integrated electronic compass.

Like the base grade, the Limited model adds standard equipment, which is either optional or not available on the conventional Highlander Limited. With a value of more than $3,200, added standard features include a JBL premium 3- in-1 audio system with a six-disc CD-changer and eight speakers in six locations, leather-trim seats, front-seat mounted side airbags with second row roll-sensing side curtain airbags, seat heaters, power tilt/slide moonroof with sunshade, and a tow prep package. With the exception of an optional touch screen DVD navigation system, every feature on the Limited grade is standard equipment, creating a tremendous value.

The base MSRP for the 4x2 Highlander Hybrid Limited will be $37,890. The Highlander Hybrid Limited with 4WD-i will carry an MSRP of $39,290.

The Highlander Hybrid will begin arriving in Toyota dealerships in June 2005.

The groundbreaking Toyota Prius mid-size sedan remains the best-selling gas-electric hybrid vehicle in the United States and the world. The most fuel-efficient mid-size car in America, the Hybrid Synergy Drive powered Prius delivers exceptional fuel efficiency without compromising performance, comfort and safety. Beginning April 4, the 2005 Prius will receive an adjusted MSRP of $20,975, a slight increase of $100, or 0.5 percent.

To meet heavy demand, last Fall Toyota announced a 100 percent increase in Prius allocation to the U.S. to nearly 100,000 units for 2005. This marked the second production increase for the second-generation Prius since its launch in October 2003. With this added allocation, Toyota expects to alleviate the delivery delays some customers have been experiencing.