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News Release

August 27, 2007

Isuzu and Hino Reach a Basic Agreement on Jointly Developing Exhaust Gas Aftertreatment System and Cabins of Heavy-Duty Trucks

                                                  Isuzu Motors Limited
                                                  Hino Motors, Ltd.




Isuzu Motors Limited (Isuzu) and Hino Motors, Ltd. (Hino) today have come to a basic agreement regarding the joint development of exhaust gas aftertreatment system for diesel engines and cabins of heavy-duty trucks.

This basic agreement will enable the two companies to utilize their respective advanced technologies through the effective and efficient allocation of their engineering resources to reduce cost of meeting global environmental regulations that will become even stricter in the future, and to continue providing customers with better products and services.

Isuzu and Hino have been working jointly on the bus production through J-Bus Limited, a company evenly financed by Isuzu and Hino, and on the supply of truck components. While the two companies will continue business collaboration that is beneficial to the both companies and to their respective customers, the companies are each committed to fair competition, securing of a unique position, and sustainable growth in the truck and bus markets around the world that will see intensified tougher competition in the future.