TOYOTA

‘Toyota Motor Sales, U.S.A., Ine.
TS) South Westem Avenue:

Torrance, CA 90501
(310) 468-1000,
To: All Toyota Dealer Principals,
Service Managers, Parts Managers, Dealer General Manager and Customer Relations
Managers.

Subject! UPDATE REGARDING CUSTOMER NOTIFICATION OF SETTLEMENT AGREEMENT IN
ECONOMIC LOSS LITIGATION RELATED TO PAST RECALLS

In December 2012, Toyota announced that it had entered into an agreement to resolve certain economic
Joss class action litigation in the U.S. This update offers additional information to help you and your staff
answer inquiries from customers and dealership associates.

Background

As announced at the end of last year, Toyota has entered into a proposed settlement to resolve certain
class action litigation filed against the company in the wake of the 2009/2010 recalls. On February 11,
2013, the next phase of the settlement process will begin. During this phase, the court-appointed
Administrator will mail notifications to certain current and former customers alerting them to the settlement.
Approximately 20 million notices will be mailed by March 29, 2013.

In addition, beginning in March, notice of the settlement will run in select U.S. publications and banner ads
will be posted on the internet in order to alert consumers to the settlement. The broad reach of the
notification process could generate inquiries from customers, who may contact Toyota dealers for more
information.

The text of the mailed and published notices is available on the settlement website,
www.ToyotaELsettlement.com.

The Court has instructed that all inquiries regarding the settlement should be directed to a court-appointed

administrator, Gilardi & Company. For more information, customers can visit the settlement website or call
877-283-0507. A copy of the proposed settlement agreement is also available on the website; it includes a
list of affected vehicles, a description of the settlement and estimated dates and deadlines.

Please note that the Court must grant final approval of the settlement before eligible participants are
determined and any benefits are made available. Because the settlement is contingent on Court approval,
we will provide you with further updates and additional information if the settlement is approved. You can
also check the settlement website for status updates.

The attached FAQ is included to help you respond to any questions that you may receive from customers,
as well as to address any additional questions that you or your staff may have.

UPDATE — Page 2

Owner Notification

The Court has instructed that all inquiries regarding the settlement should be directed to a court-appointed
administrator, Gilardi & Company. Customers with questions about the settlement should be directed to
the settlement website, www.ToyotaELsettiement.com, or asked to call 877-283-0507.

Please review all of the attached materials with the appropriate associates so that they may provide the
necessary support to maximize our combined customer satisfaction efforts.

Thank you for your cooperation,
TOYOTA MOTOR SALES, U.S.A., INC.
Enclosures:

FAQ for Customers and Dealers

FREQUENTLY ASKED QUESTIONS

As announced at the end of last year, Toyota has entered into a proposed settlement to resolve certain
class action litigation filed against the company in the wake of the 2009/2010 recalls, which claimed that
Toyota/Lexus/Scion vehicles had lost value because of the Company's actions, the negative publicity
Surrounding the recalls, and an alleged defect in Toyota's electronic throttle control systems (ETCS) that
could cause acceleration unintended by the driver.

Though reliable scientific evidence and multiple independent evaluations have confirmed the safety of
Toyota's electronic throttle contro! systems, the company has concluded that tuming the page on this
legacy legal issue is in the best interests of the company and its employees, dealers and customers.

In keeping with its core principles, Toyota has structured this agreement in ways that work to put customers
first and demonstrate that they can count on the company to stand behind its vehicles.

On February 11, 2013, the next phase of the settlement process will begin. During this phase, the court-
appointed Administrator will mail notifications to certain current and former customers alerting them to the
settlement. Approximately 20 million notices wil! be mailed by March 29, 2013.

In addition, beginning in March notice of the settlement will run in select U.S. publications and banner ads
will be posted on the internet in order to alert consumers fo the settlement. The broad reach of the
notification process could generate inquiries from customers, who may contact Toyota dealers for more
information.

The text of the mailed and published notices is available on the settlement website,
www.ToyotaELsettlement.com.

The Court has instructed that all inquiries regarding the settlement should be directed fo a court-appointed
administrator, Gilardi & Company. For more information, you can visit the settlement website, at

www. ToyotaELsettlement.com, or call 877-283-0507. A copy of the proposed settlement agreement is
available on the website; it includes a list of affected vehicles, a description of the settlement and estimated
dates and deadlines.

Please note that the Court must grant final approval of the settlement before eligible participants are
determined and any benefits are made available. Because the settlement is contingent on Court approval,
we will provide you with further updates and additional information if the settlement is approved. You can
also check www. ToyotaELsettlement.com for status updates.

The following FAQ includes answers to address likely questions among both customers and dealers.

FOR CUSTOMERS

1. Why am | receiving this notification? / Why am | seeing advertisements for this settlement
agreement?

° At this stage of the settlement process, the Court requires that class members be notified of the
agreement by mail and/or by the publication of notice in various print and online media to help make
those potentially eligible to participate in the settlement aware of how they can receive more
information.

FAQs — Page 2

2. How do ! know if my vehicle is involved in this settlement?

The Court has instructed that all inquities regarding the settlement should be directed to a court-
appointed administrator, Gilardi & Company. For more information, you can visit the settlement
website, at www.ToyotaELsettlement.com, or call 877-283-0507.

A copy of the proposed settlement agreement is available on the website; it includes a list of
affected vehicles, a description of the settlement and estimated dates and deadlines.

Please note that the Court must grant final approval! of the settlement and any appeals must be
resolved in favor of the settlement before eligible participants are determined and any benefits are
made available.

3. Am | eligible for a cash payment?

The Court has instructed that all inquiries regarding the settlement should be directed to a court-
appointed administrator, Gilardi & Company. For more information, you can visit the settlement
website, at www.ToyotaELsettlement.com, or call 877-283-0507. A copy of the proposed
settlement agreement is available on the website; it includes a list of affected vehicles, a description
of the settlement and estimated dates and deadlines.

Please note that the Court must grant final approval of the settlement and any appeals must be
resolved in favor of the settlement before eligible participants are determined and any benefits are
made available.

4. Iflam eligible, when will | be notified about how to collect?

The Court has instructed that all inquiries regarding the settlement should be directed to a court-
appointed administrator, Gilardi & Company. For more information, you can visit the settlement
website, at www.ToyotaELsettlement.com, or call 877-283-0507. A copy of the proposed
settlement agreement is available on the website; it includes a list of affected vehicles, a description
of the settlement and estimated dates and deadlines.

Please note that the Court must grant final approval of the settlement and any appeals must be
resolved in favor of the settlement before eligible participants are determined and any benefits are
made available.

5. Am | eligible to get Brake Override?

The Court has instructed that all inquiries regarding the settlement should be directed to a court-
appointed administrator, Gilardi & Company. For more information, you can visit the settlement
website, at www.ToyotaELsettlement.com, or call 877-283-0507. A copy of the proposed
settlement agreement is available on the website; it includes a list of affected vehicles, a description
of the settlement and estimated dates and deadlines.

Please note that the Court must grant final approval of the settlement and any appeals must be
resolved in favor of the settlement before eligible participants are determined and any benefits are
made available.

FAQs — Page 3

6. Iflam eligible, when will | be told to bring my vehicle in for retrofitting?

The Court has instructed that all inquiries regarding the settiement should be directed to a court-
appointed administrator, Gilardi & Company. For more information, you can visit the settlement
website, at www.ToyotaELsettlement.com, or call 877-283-0507. A copy of the proposed
settlement agreement is available on the website; it includes a list of affected vehicles, a description
of the settlement and estimated dates and deadlines.

Please note that the Court must grant final approval of the settlement and any appeals must be
resolved in favor of the settlement before eligible participants are determined and any benefits are
made available.

7. What should I do if | received a notice but no longer own the vehicle/have never owned the
vehicle?

The Court has instructed that all inquiries regarding the settlement should be directed to a court-
appointed administrator, Gilardi & Company. For more information, you can visit the settlement
website, at www.ToyotaELsettlement.com, or call 877-283-0507. A copy of the proposed
settlement agreement is available on the website; it includes a list of affected vehicles, a description
of the settlement and estimated dates and deadlines.

Please note that the Court must grant final approval of the settlement and any appeals must be
resolved in favor of the settlement before eligible participants are determined and any benefits are
made available.

8. Why aren’t you giving brake override systems to everyone?

Toyota vehicles are safe, with or without brake override.

We have agreed to add BOS to non-hybrid vehicles subject to the floor mat recall in order to give
customers an added measure of confidence in the safety of their vehicles.

9. Are vehicles that will not get brake override unsafe?

No. Toyota vehicles are safe, with or without brake override.

10. Does this settlement mean that there is a defect in Toyota vehicles?

Absolutely not. This agreement relates strictly to economic claims, not to product safety.

We believe that this agreement demonstrates that Toyota stands behind the quality and safety of its
products and is committed to providing value to its customers.

Reliable scientific evidence — including the comprehensive NHTSA-NASA studies as well as other
independent evaluations — confirms that Toyota's electronic throttle control system is safe.

FAQs — Page 4

11.

12,

13.

14,

15.

When does the customer support program start?

The Court has instructed that all inquiries regarding the settlement should be directed to a court-
appointed administrator, Gilardi & Company. For more information, you can visit the settlement
website, at www.ToyotaELsettlement.com, or call 877-283-0507. A copy of the proposed
settlement agreement is available on the website; it includes a list of affected vehicles, a description
of the settlement and estimated dates and deadlines.

Please note that the Court must grant final approval of the settlement and any appeals must be
resolved in favor of the settlement before eligible participants are determined and any benefits are
made available.

Do | give up anything under the settlement?

The Court has instructed that all inquiries regarding the settlement should be directed to a court-
appointed administrator, Gilardi & Company. For more information, you can visit the settlement
website, at www.ToyotaELsettlement.com, or call 877-283-0507.

What do | do if | experience a problem with my vehicle?

As always, if you have any concerns with your vehicle, please take it to your local Toyota or Lexus
dealer.

What is a brake override system?

A brake override system will cut engine power under certain circumstances when the vehicle
detects that both the accelerator pedal and the brake pedal are being depressed at the same time,
helping bring the vehicle to a stop.

For more information, please visit Toyota.com or Lexus.com, under Smart Stop Technology.
When will brake override be available for my vehicle?

The Court has instructed that all inquiries regarding the settlement should be directed to a court-
appointed administrator, Gilardi & Company. For more information, you can visit the settlement
website, at www.ToyotaELsettlement.com, or call 877-283-0507. A copy of the proposed
settlement agreement is available on the website; it includes a list of affected vehicles, a description
of the settlement and estimated dates and deadlines.

Please note that the Court must grant final approval of the settlement and any appeals must be
tesolved in favor of the settlement before eligible participants are determined and any benefits are
made available.

FAQs — Page 5

FOR DEALERS

1. When do you expect the programs in this settlement agreement to begin? How will i be notified?

e The settlement is only effective if and when the Court approves it. If the Court grants final approval
of the settlement, we will contact you again with information about how the programs will be put into
effect.

e Inthe meantime, please refer to the settlement website www.ToyotaELsettlement.com for
additional information about the settlement, including timing and the programs that will be offered if
the Court grants final approval.

2. Where should | direct customers who may have questions about this settlement agreement?

* The Court has instructed that all inquiries regarding the settlement should be directed to a court-
appointed administrator, Gilardi & Company. For more information, you can visit the settlement
website, at www. ToyotaELsettlement.com, or call 877-283-0507. A copy of the proposed
settlement agreement is available on the website; it includes a list of affected vehicles, a description
of the settlement and estimated dates and deadlines.

e Please remind customers that the Court must grant final approval of the settlement and any appeals
must be resolved in favor of the settlement before eligible participants are determined and any
benefits are made available.

3. What should I tell customers who ask for Brake Override to be installed before the agreement
has been finalized?

e The Court has instructed that all inquiries regarding the settlement should be directed to a court-
appointed administrator, Gilardi & Company. For more information, you can visit the settlement
website, at www.ToyotaELsettlement.com, or call 877-283-0507.

*« Acopy of the proposed settlement agreement is available on the website; it includes a list of
affected vehicles, a description of the settlement and estimated dates and deadlines.

«Please remind customers that the Court must grant final approval of the settlement and any appeals
must be resolved in favor of the settlement before eligible participants are determined and any
benefits are made available.

4. What, if any, impact do you predict this agreement will have on the sale of Toyota vehicles?
* We do not believe these settlements will affect our ability to compete aggressively in the US market.

¢ TMC is financially strong, with substantial cash reserves and a strong balance sheet.

« Toyota's sales were also very strong in 2012, and our goal is to continue that momentum into 2013.

FAQs - Page 6

e Putting these legal issues behind us will allow us to put more of our energy, time and resources into
Toyota’s central focus: making the best vehicles we can for our customers and doing everything we
can to meet their needs.