Joint Development

Toyota Motor Corporation
29 June 2001

                                                  TOYOTA MOTOR CORPORATION
                                                  PSA PEUGEOT CITROEN


                        Toyota, PSA Peugeot Citroen Plan
                    Joint Development/Production of Small Cars

        -Companies Due to Sign Memorandum of Understanding on July 12-

Tokyo -TOYOTA MOTOR CORPORATION (TMC) and PSA PEUGEOT CITROEN (PSA) announced
today that ongoing cooperation talks should lead to the signing of a memorandum
of understanding on July 12 for the joint development of a new vehicle platform
to be used in joint production in Europe of small, entry-level passenger cars
for both parties.

Primarily designed for European markets, this new car concept has been conceived
to meet the changing needs of local customers. Cars produced using this common
platform will have a three-fold advantage: they will have prices lower than
those in the current small-car segment, feature a high-level of standard safety
performance, and offer excellent environmental achievements.

TMC considers this collaboration as one of its efforts to meet consumer demand
for low-cost, fuel-efficient and environment-friendly vehicles. It believes that
working together will provide a capable response to the expanding small
passenger car market.

PSA Peugeot Citroen views this cooperation between two independent companies as
a further materialization of the PSA Peugeot Citroen Group's strategy aimed at
reaching agreements on the joint development and production of mechanical
components and platform elements, with the objective of obtaining economies of
scale.

TMC President Fujio Cho and PSA Peugeot Citroen CEO Jean-Martin Folz intend to
sign a memorandum of understanding in Brussels on July 12, 2001, after which
they hope to outline this new cooperation at a joint press conference to be held
at 11 a.m., local time (6 p.m. JST) on the same day. Details on the conference
site, etc. will be provided through a media advisory at a later date.

Contact: Shigeru Hayakawa / Paul Nolasco at: 03-3817-9158 / 9161