Ooooo Funked...better get out your checkbook for this one buddy!
On the same day as the much anticipated Mitsubishi EVO VIII's pre-production sales begin, Subaru counters with ~25 more hp and lb-ft torque than the EVO in today's announcement.
E46M3 owners look upon the mighty Subaru and dispair!

"Subaru of America, Inc. today introduced the long-awaited 2004MY Impreza WRX STi, an ultra high-performance all-wheel drive sedan, at the North American International Auto Show. Impreza WRX STi is powered by a turbocharged and intercooled 2.5-liter DOHC boxer engine producing
300 horsepower at 6,000 rpm and
300 lb.-ft. of peak torque at 4,000 rpm. Impreza WRX STi will arrive in dealerships this summer and will earn distinction as the most powerful Subaru ever offered for sale in North America.
The 2.5-liter horizontally opposed ("boxer") four-cylinder engine is based on a specially reinforced "semi-closed deck" engine block with forged aluminum alloy pistons, forged high-carbon steel connecting rods and sodium-filled exhaust valves. This advanced powerplant incorporates Subaru AVCS (Active Valve Control System) variable valve timing technology to optimize the engine's volumetric efficiency throughout the rev band. It is the first application of this technology on a Subaru in North America. The large capacity intercooler includes a manually operated water spray feature to provide additional cooling.
In its exterior design, Impreza WRX STi leaves no doubts about its performance potential -- a look that is equally functional. The enlarged hood scoop in the aluminum hood feeds outside air to the intercooler that is significantly larger than the unit found on Impreza WRX. A completely functional dual element rear spoiler -- which appears to be borrowed directly from the Subaru World Rally Car -- helps reduce lift and improve stability at high speed. Airflow is also managed via front side spoilers on the front bumper and STi side ground effects. The front fascia features four high-intensity discharge (HID) headlamps with smoke tinted lenses and distinctive STi fog light insert covers for a no-nonsense look. Large diameter Brembo(R) brakes are clearly visible between the spokes of the 17-inch lightweight aluminum-alloy BBS(R) wheels.
WRX STi is equipped with the brand's most performance-directed All-Wheel Drive system with DCCD (Driver Control Center Differential). In automatic mode, the computer varies the front/rear torque split automatically depending on driving conditions and driver input. In manual mode, the DCCD system allows the driver to vary the front-to-rear torque distribution for different driving conditions.
Using a small control wheel on the car's center console, the driver can set the system to transfer as much as 65 percent of available torque to the rear wheels to increase handling agility."
http://prn.newscom.com/cgi-bin/pub/s?f=PRN/prnpub&p1=20030106-PHM043&xtag=PRN-prnphotos-30968&redir=detail&tr=1&row=1