Dissolution of a Subsidiary

Toyota Motor Corporation
29 August 2006

                                 (Translation)



To Whom It May Concern:



                                                                 August 29, 2006



                                          Company Name: TOYOTA MOTOR CORPORATION
                                               Name and Title of Representative:
                                                    Katsuaki Watanabe, President
                                                              (Code Number: 7203
                                          Securities exchanges throughout Japan)
                                               Name and Title of Contact Person:
                                                                    Takuo Sasaki
                                            General Manager, Accounting Division
                                                (Telephone Number: 0565-28-2121)


               Notice Concerning the Dissolution of a Subsidiary



We hereby give notification that at the meeting of the Board of Directors of
Toyota Motor Corporation ('TMC') held on August 29, 2006, TMC decided to
dissolve its subsidiary, Terra Corporation, as described below.



1.  Facts of Terra Corporation



Location:                    25, Fukadacho 1-chome, Toyota-shi, Aichi Prefecture

Representative:              Yasumori Ihara (Managing Officer of TMC)

Date of Incorporation:       October 1996

Capital:                     JPY 100 million

Shareholder Composition:     TMC : 85%

Nippon Furnace Kogyo Kaisha,
 Ltd.:                       10%

Kazuhisa Mitani : 5%

Contents of Business:       Development, manufacture, and sale of regenerative 
                            burners


2.  Reason for Dissolution


Although TMC has continuously made efforts in the operation of Terra Corporation
since its establishment, as the business results have been poor and there are no
prospects for restructuring the company, TMC has decided to dissolve Terra
Corporation.

In order to assure customers, the after-sales service of the products of Terra
Corporation will be succeeded by Toyota Tsusho Corporation, the current sales
agency.



3.  Schedule for Liquidation

    Liquidation proceedings are scheduled to begin in or after Octobers 2006.

4.  Anticipated Effects on the Business Performance

    The anticipated effects of the dissolution of Terra Corporation on TMC's
business performance are minor.


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