December 9, 2014

To: Lexus Area General Managers
From: Don Fordiani, National Field and Dealer Operations Manager
Subject: Warranty Enhancement Program - (Phase t - Reimbursement) - ZLD

2007 - 2008 Model Year ES 350

2003 - 2008 Model Year GX 470

2006 - 2008 Model Year IS 250/350

2007 Model Year LS 460

2004 - 2006 Model Year RX 330

2007 - 2009 Model Year RX 350

2005 - 2008 Model Year RX 400h

Extension of Warranty Coverage for Cracked and/or Sticky/Melting Dashboards
(Instrument Panels) as a Result of Heat or Humidity

In our continuing efforts to ensure the best in customer satisfaction, Lexus is announcing a Warranty
Enhancement Program. This program extends the warranty coverage for repairs related to cracked and/or
sticky/melting Dashboards (Instrument Panels) as a result of heat or humidity on 2007-2008 model year
ES 350, 2003-2008 model year GX 470, 2006-2008 model year IS 250/350, 2007 model year LS
460, 2004-2006 model year RX 330, 2007-2009 model year RX 350, and 2005-2008 mode! year
RX 400h vehicles.

NOTE: The same Warranty Enhancement Program coverage described herein is also applicable to 2006 -
2008 Model Year !§ 250/350 and 2007 Model Year L5 460 vehicles for cracked and/or sticky/meking
front and rear interior door panels as a result of heat or humiality.

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This Warranty Enhancement Program will be launched in two phases due to current parts production
capacity. Initially, Lexus will inform owners that they may seek reimbursement consideration for previous
repairs for this condition. Once sufficient parts are available, Lexus will send a second owner notification
letter informing owners that replacement will be made for any cracked and/or sticky/melted Dashboard as a
result of heat or humidity.

Phase Description Tentative Mailing Schedule
1 Reimbursement Mid-December, 2014
2 Part Replacement May, 2015

The following important information is provided to advise you and your associates of the program notification
schedule and the degree of your involvement. Additionally, an FAQ covering details of this Warranty
Enhancement Program is enclosed for your reference.

Dealer and Owner Notification Letter Mailing Date
Lexus will notify its dealers with regard to this warranty enhancement program in early December, 2014.

Please do not share details of this program with dealers prior to the official dealer notification

The first owner notification letter will be sent in mid-December, 2014 approximately one week after the
dealer notification. A sample copy of the owner notification letter is enclosed for your reference.

The first owner notiication letter will advise owners that they may seek reimbursement consideration for
previous repair costs for cracked and/or sticky/melling Dashboards as a result of heat or humidity. In
addition, the letter will advise owners of 2006-2008 Mode! Year 1S 250/350 and 2007 Model Year LS
460 vehicles that they also may seek reimbursement consideration for previous repair costs for cracked
and/or sticky/melting front and rear interior door panels as a result of heat or humidity. The letter will also
inform the owner that due to parts availability, Lexus is not able to support repairs at this time.

Once sulficient parts have been prepared and obtained, Lexus will send a second owner notilication letter
informing owners that repairs will be performed for cracked and/or sticky/melting Dashboards as a result of
heat or humidity and for cracked and/or sticky/melting front and rear interior door panels (lor 2006-2008
Model Year IS 250/350 and 2007 Model Year LS 460 Vehicles) as a result of heat or humidity. Lexus
anticipates the second owner not fication letter will begin lo be sent in May, 2015

Please Note: Dashboards and front and rear interior door panels can become cracked and/or sticky/melted
over time for a number of diferent reasons and under a number of different circumstances. If the Dashboard
and/or front or reer interior door panel has become cracked and/or sticky/melted as a result of heat or
humidity, the repair will be performed at no charge as soon as parts become available.

Warranty Enhancement Program Details

This Warranty Enhancement Program provides a Primary and Secondary coverage for a covered vehicle's
New Vehicle Limited Warranty” as it apples to the Dashboard. The specific condition covered by this
program is any cracked and/or sticky/melted Dashboard as a result of heat or humidity for any covered
vehicle. If the condition is verified, the repair will be performed in accordance with the applicable TSB under
the terms of this Warranty Enhancement Program

NOTE: The same Warranty Enhancement Program coverage described herein is also applicable to 2006 -
2008 Model Year IS 250/350 and 2007 Model Year LS 460 vehicles for cracked and/or sticky/meking
front and rear interior door panels as a result of heat or humidity.

e The Primary Coverage offers warranty enhancement unti! May 31, 2017, regardless of mileage or date of
first use of the vehicle

e Secondary Coverage supplements the Primary Coverage for some owners by offering the warranty
enhancement described herein for 10 years from the date of first use of the vehicle, regardless of
mileage. For instance, if you own a 2009 RX 350 that was first used on January 1, 2010, you are
entitled to the warranty enhancement through January 1, 2020.

Please note that this coverage is for warranty repair performed at an authorized Lexus dealer only. A
maximum of one dashboard replacement can be performed, if eligible, under this Warranty Enhancement
Program

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This Warranty Enhancement Program is subject to the same terms, conditions, and limitations set forth in the
New Vehicle Limited Warranty Section of the Owner's Warranty Information booklet, with the exception of
the warranty enhancement coverage for this specific condition. For example, damage form abuse, accident,
theft, and/or vandalism is not covered by the New Vehicle Limited Warranty or this warranty enhancement
To the extent your New Vehicle Limited Warranty has expred, it is being extended only as to the specific
condition and parts identified above, subject to the terms, conditions, and limitations in that Warranty

Number of Vehicles Covered
There are approximately 1.1 million vehicles covered by this Warranty Enhancement Program. Please verify
coverage by confirming through TIS.

Parts Ordering for the Covered Condition
During the first Phase, dealerships should NOT perform any part replacement. Dealers should let the

customer know that the parts are being prepared and obtained.

Claim Procedures

If dealers are servicing a vehicle thal currently has a cracked and/or sticky/melted Dashboard or front
and/or rear interior door panel (for 2006-2008 Model Year IS 250/350 and 2007 Model Year LS 460
vehicles) as a result of heat or humidity, the operation codes and part numbers for claim filing will be
provided during the second phase of this Warranty Enhancement

Customer Reimbursement Procedures
Please refer to the attached owner letter for reimbursement instructions

Please review this entire package wilh your associales to familiarize them with the proper procedures to
implement this warranty enhancement

Thank you for your continued support and cooperation

Attachments

Ce Assistant Area General Managers
Customer Satisfaction Managers
Customer Services Field Managers
Customer Services Operations Managers
District Service and Parts Managers
Field Technical Specialists
Field Product Engineers
Pre-Owned Managers
Vehicle Field Sales Managers