"Lexus believes that children have the potential, and the desire, to make the world a better place. To encourage them to pursue their dreams, Lexus will support organizations that build, shape and improve children's lives."

The Lexus Pursuit of Potential is a passionate pledge to better the world and, more specifically, children's lives. Our philanthropy is more than just a financial donation. By partnering with charities that share our philosophy and commitment, we will make a better tomorrow. In conjunction with our generous dealers, $3 million was donated in 2007 through the Pursuit of Potential.

A program called "Dealer Matching Funds" was launched in January 2007 and has provided tremendous support for the Pursuit of Potential. This program gives our dealers the opportunity to donate, with Lexus matching the first $1 million contributed. Together, we have generated millions of dollars for children's charities in the dealers' communities.

Lexus also supports a host of charities that cover a wide range of initiatives. The Lexus Eco Challenge, Champions for Charity golf events, the Cedars-Sinai Board of Governors and Keys to Innovation are just a few. Each of these charities has its own unique approach in improving the lives it touches. In conjunction with our dealers, Lexus is proud to support the Pursuit of Potential and partner with these dedicated charities.

Lexus is a proud sponsor of the Cedars-Sinai Board of Governors. It is a group of more than 400 community leaders who have committed their vision, leadership and support to the advancement of Cedars-Sinai Medical Center, its medical programs, leading edge research and community outreach. By partnering with the Board of Governors, Lexus is able to help support and equip world-class scientists to explore the vital frontiers of medical research. Breakthroughs into new diagnostic methods and treatments are the goal in battling diseases like cancer and Alzheimer's.

The 3rd annual "Road to a Cure" Gala in November 2007 was a star-studded evening benefitting the Board of Governors Center for Cancer Research at Cedars-Sinai's Samuel Oschin Comprehensive Cancer Institute. To add to the exciting evening, Lexus donated a LS 600h L hybrid luxury sedan that was part of a drawing that helped raise nearly $500,000 for the Board of Governors.

The Board of Governors has benefited from tremendous support in its community. In just four years, it raised close to $15 million for Cedars-Sinai's Cancer Center. Lexus is proud to support its initiatives in research and looks forward to partnering again in 2008.

For 2008, The Board of Governors Heart Stem Cell Center will focus on new ways to use stem cells to regenerate the ailing heart. By using advanced cell-based treatments such as those involving the patient's own stem cells, the Center will strive to provide innovative alternatives to traditional drugs, heart transplantation and implanted devices.

Together with Cedars-Sinai, we are moving closer to improving the quality of life for all patients.

The $1 million Lexus Eco Challenge was developed to educate students about the environment and inspire them to create a better world. In conjunction with Scholastic, Lexus designed this national competition to challenge middle and high school students to create and implement environmental programs in their communities. To help champion the message and cause, Fabien Cousteau has also joined our team as the lead spokesperson. He will participate in interviews, online communications and provide insight on the initiatives being conducted.

Detailed program and registration information for the 2008 Lexus Eco Challenge is now available at www.scholastic.com/lexus. This year there are three initial challenges; land, water and air/climate. For each challenge, 16 teams will win $10,000 in grants and scholarships. These teams will then be invited to participate in the Final Challenge and a chance to win a grand prize of $50,000 in grants and scholarships.

Last year, more than 3,500 students nationwide participated in the program. The students took on a wide range of ecological issues from reducing emissions to water pollution. Their approaches demonstrated a meaningful contribution to their education and their communities.

The Final Challenge required teams to reach beyond the local community and inspire environmental action around the world through innovative ideas that were communicated to a wide audience.

To reward their hard work, dedication and innovative spirit, more than $1 million in grants and scholarships were awarded during the seven-month-long program. The two grand-prize winners were "The Climate Academy," from Academy I Middle School in Jersey City and "The Dream Team" from W.R. Farrington High School in Honolulu. The 14 first-place teams were:

• - Atlanta, Ga. – "Westminster CCC3" – The Westminster Schools
• - Baldwin Park, Calif. – "The Ones Who Care" – Sierra Vista High School
• - Bryn Mawr, Penn. – "The Green Gators" – The Shipley School
• - Chicago, Ill – "Earth Warriors" – Madero Middle School
• - Holladay, Utah – "Radon Awareness Group" – Olympus Junior High
• - Holladay, Utah – "Save Our Fresh Water" – Olympus Junior High
• - Holladay, Utah – "The Treehuggers" – Olympus Junior High
• - La Crescenta, Calif. – "Marine Science Researchers" – Clark Magnet High School
• - Lake Charles, La. – "St. Margaret Science Club" – St. Margaret Catholic School
• - Newberry, Fla. – "Newberry Environmental Girls" – Newberry High School
• - New Hyde Park, NY – "The Elementals" – Herricks High School
• - New Hyde Park, NY – "Vampire Exterminators" – Herricks High School
• - Torrance, Calif. – "L.I.F.E" – South High School
• - Wilmington, NC – "Team Earth" – Lyceum Academy of New Hanover High School

In addition to the contest portion of the Lexus Eco Challenge, the program also provides standards-based supplementary educational materials so teachers can integrate creative lesson plans into their classrooms to teach students about the environment. The materials, developed with Scholastic, are designed to align with national teaching standards for science, social studies, civics and language arts. For each of the challenges, lesson plans and teacher instructions—including questions to help guide a discussion about the challenge topic, facts about the topic, and guidelines for a specific classroom project—are available.

The Lexus Eco Challenge is part of The Lexus Pursuit of Potential, a philanthropic initiative that generates up to $3 million in donations each year for organizations that help build, shape and improve children's lives.

To support and honor inner-city schools across the country that have successfully implemented innovative environmental programs in their schools and communities, Lexus has partnered with award-winning artist Alicia Keys to promote "Keys to Innovation."

The Keys to Innovation initiative was part of Alicia Keys' "As I Am" tour sponsored by Lexus. Together, Lexus and Alicia rewarded 10 schools across the country with $2,000 donations to support their existing environmental programs. As a bonus for their hard work and dedication, students received complimentary VIP tickets and an exclusive opportunity to attend Alicia's pre-concert sound check. Following the concert, it is back to business. The schools will compete against each other by submitting a detailed "Keys to Innovation" action plan that details their individual environmental program's goals and initiatives. The plans will be judged on a variety of criteria including the overall plan, presentation and ability to execute it within budget. The winning school will receive $10,000 to support its environmental program.

Lexus believes that programs like these are a unique way to recognize and reward people who are making a difference in their school and community. Through the power of music and education, Keys to Innovation champions students' passion for improving the environment and helps carry it forward to future generations.

The Lexus Champions for Charity is a series of golf tournaments that are hosted by Lexus dealerships in their communities to help support local charities. Lexus is proud to announce that 2008 marks the 20th anniversary of this successful nationwide program.

These tournaments give local golfers the opportunity to compete and raise money for their charity. They also have the opportunity to bid at the charity's auction for a place in the National Championship event at the historic Pebble Beach Golf Links® [1].

On a nationwide basis, Lexus Champions for Charity has generated more than $115 million for charities through more than 2,500 events. Last year, 30,000 golfers participated in 185 Lexus Champions for Charity tournaments across the country. The growing support and continuous success of this program is a true testament to our dealers and their communities' commitment to enriching others' lives. Lexus is honored to be a part of these events and the communities that support them. Together, we will make a difference.

Notable Charities:

National Leukemia and Lymphoma Society

National Multiple Sclerosis Society – New Jersey Metro Chapter

American Diabetes Association

Tee for Tots

March of Dimes

Anne Arundel Medical Center Foundation

East Oakland Youth Development Center

John Starks Foundation

Gilda's Club Madison

Casa Colina Centers fro Rehabilitation Foundation

Boys and Girls Club of Ventura

Hilton Head Regional Habitat for Humanity