Subaru became one of the top contenders in no time. This Impreza was equipped with the blister fenders which were extended to 177mm, the front spoiler for cooling the radiator and the rear wing making the down force. Of Course, these spoilers were made based on a wind-tunnel test. Horizontally placed, 4 cylinder turbocharged engine is to deliver an awesome 300 plus horsepower. The engine is moved to backward as much as possible, then its intercooler with an air-cooled system is placed at front side. Furthermore the electronic control active differentials by hydraulically-operated are put on the front and center parts. Since 1998, the engine was modified again such as the crank shaft and the intake-manifold. Its front grille was modified more wide to take more air, and the body strength became more sturdy due to the addition of a roll bar on B-pillar.

The drivers of Subaru are Colin Mcrae as the first driver, Piero Liatti and Kenneth Eriksson. C.Mcrae won the victory on 4th race in Portugal and 6th race in Tour-de-Corse. Impreza showed its high potential on stage of WRC.