February 11, 2013

To: All Lexus Dealer Principals

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

tn December 2012, Toyota announced that it had entered into an agreement to resolve certain economic loss class
action litigation in the US. This update offers adklitional 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 lo resolve certain class action
litigation filed against the company in the wake of the 2009/2010 recalls. On February Il, 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 nolilication process could generate
inquiries from customers, who may contact Lexus dealers for more information

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

The Court has instructed that all inquiries regarding the settlement should be directed to a courl-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 belore 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 setilement 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.

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. ToyotaELsettlement.com, or asked to call 877-283-0507.

UPDATE - Page 2

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,

Lexus Service and Parts Operations Department

Enclosures:

FAQ for Customers and Dealers

CC: Service Managers
Parts Managers
General Managers
Customer Relations Managers

FREQUENTLY ASKED QUESTIONS

As announced at the end of last year, Toyota has entered into a proposed settlement to resolve certain class action
Itigation filed against the company in the wake of the 2009/2010 recalls, which claimed that Teyota/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 throtile control systems (ETCS) that could cause acceleration unintended by the otiver.

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

tn 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 1 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

An addition, beginning in March notice of the settlement will run in select US. 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
ingutries from customers, who may contact Lexus dealers for more information.

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

The Court has instructed that all inquiries regarding the settlement should be directed to 2 court-anpointed administrator,
Gilardi & Company. For more information, you can visit the setlement website, atwww.loyotaELsettlement.com, or call
877-283-0507. A copy of the proposed’ settlement agreement is available on the website; it includes a list of lected
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 particioants are determined and any
benelits 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.loyotaELsettlement.com for
status updates.

The tollowing 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 setilement agreement?

¢ — Atthis 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 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 seitlement agreement is available on the website; it includes a list of affected vehicles, a
description ol the settlement and estimated dates and deadlines.

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

3. Am|digible 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. ToyotaEL settlement.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 seltlement and estimated dates
and deadlines.

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

4. Iflametligible, 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. loyotaELsetilement.com, or call 877-283-0507. A copy of the proposed settlement agreement is
available on the website; it includes a list of alected 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 appea's must be resolved in favor
of the settlement before eligible participants are determined and any benefits are made available

5. Am leligible 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.ToyotaEL settlement 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 Courl 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. fl am eligible, when will | be told to bring my vehicle in lor retrofitting?

® The Court has instructed that all inquiries regarding the setllement should be directed to a court-appointed
administrator, Gilardi & Company. For more information, you can visil the settlement

website, at www. oyotaELsettlement. 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
ol the settlement before eligible participants are determined and any benefits are made available.

7. What should | 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 belore eligible participants are determined and any benefits are made available.

8. Why aren't you giving brake override systems to everyone?
e Lexus vehicles are sale, 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 salety of their vehicles,

9. Are vehicles that will not get brake override unsafe?
e No. Lexus 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 lo product safely.

¢ 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 thratile control system is safe.

FAQs - Page 4

1 When does the customer support program start?

12.

B.

14,

B.

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. ToyolaELsettlement.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 seitlement before eligible participants are determined and any benelits 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 seitlement 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 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 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; il 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 benelits are made available

FAQs - Page 5

FOR DEALERS

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

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 eect.

In the 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.ToyataELsetilement.com, or call 877-283-0507. A copy of the proposed setilement 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.

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

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. loyotaEl settlement.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 remind customers that the Curt must grant final approval of the settlement and any appeals rust 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 Lexus vehicles?

We do not believe these seit!emenis will affect our ability to compete aggressively in the US market

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

Lexus’ sales were also very strong in 2012, and our goals to continue that momentum into 2013.

Putting these legal issues behind us will allow us to put more of our energy, lime and resources into Lexus’

central focus: making the best vehicles we can for our customers and doing everything we can to meet their
needs.

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