Honda Consolidates Motorcycle Business Structure in Malaysia

JCN Newswires, July 31, 2008

Penang, Malaysia, July 31, 2008 - (ACN Newswire) - Honda Motor Co., Ltd. today announced it has signed a joint venture agreement with Oriental Holdings Bhd. (OH) in Malaysia to establish a 50/50 joint venture company, Boon Siew Honda Sdn. Bhd., in September 2008, to consolidate motorcycle production and sales in Malaysia and achieve higher customer satisfaction and efficiency.

Currently, Boon Siew Sdn. Bhd. (BSW) is responsible for wholesaling Honda motorcycle products in Malaysia and contracts the final assembly of Honda motorcycles to Kah Assemblers Sdn. Bhd., a wholly-owned subsidiary of OH.

With the new agreement, Honda will obtain 50% of the outstanding shares of Kah Assemblers Sdn. Bhd. from OH, and establish a 50/50 joint venture with OH. In January 2009, wholesale operations are scheduled to be transferred from BSW to consolidate production and sales operations with the new company. While envisioning collaboration with other Honda companies in the ASEAN region, the new company will strengthen its competitiveness and strive to provide products and services which exceed customer

expectations.

The overall size of the motorcycle market in Malaysia was approximately 468,000 units in 2007 (up 6% from 2006) and is expected to reach approximately 520,000 units in 2008 (up 11% from 2007). As steady growth is expected to continue, Honda will establish a new business structure which enables Honda to quickly respond to the diverse needs of customers and further grow its motorcycle business in Malaysia.

About Boon Siew Honda Sdn. Bhd.

Establishment         September, 2008 (planned)
Location              Penang, Malaysia
President             Shoichi Harada
Capital Investment    2.5 million malaysian ringgit (MYR)*
                      *about 83 million yen
Capitalization ratio  50% Honda Motor Co., Ltd.
                      50% Oriental Holdings Bhd.
Business              Production and sales of motorcycle
Production Models     EX-5, Wave100, Wave125, Click, CBR150R

History of Honda motorcycle business in Malaysia

1957 - Boon Siew Sdn. Bhd. (BSW) began import sales of Honda motorcycles

1969 - Honda and BSW formed a technical collaboration and Kah Motor Sdn. Bhd. began final assembly of motorcycles in Malaysia contracted by BSW.

2005 - Kah Assemblers Sdn. Bhd. became independent from Kah Motor Sdn. Bhd.

2007 - BSW celebrated its 50th anniversary. Cumulative motorcycle production reached the 3 million unit milestone.

Name of company       Boon Siew Sdn. Bhd.
Establishment         1957
Capitalization        Boon Siew Family 100.0%
Scope of Business     Wholesaling of motorcycles

Name of company       Kah Assemblers Sdn. Bhd.
Establishment         2005
Capitalization        Oriental Holdings 100.0%
Scope of Business     Final assmbly of motorcycles
                      (began final assembly of motorcyles
                      under Kah Motor in 1969, and the
                      company became independent in 2005)

Name of company       HICOM-Honda Mfg. Malaysia Sdn. Bhd.
Establishment         1985
Capitalization        DRB-Hicom 48.0%
                      Honda 30.0%
                      Boon Siew 19.0%
                      Others 3.0%
Scope of Business     Engine assembly

Name of company       Armstrong Auto Parts Sdn. Bhd.
Establishment         1978
Capitalization        Oriental Holdings 53.6%
                      Honda 23.6%
                      Showa 5.0%
                      Others 17.8%
Scope of Business     Production of body frame parts

Name of company       Oriental Holdings Bhd.
Establishment         1963
Capitalization        Boon Siew 43.0%
                      Honda 4.0%
                      Others 53.0%
Scope of Business     Holding company (listed)

About Honda Motor Co., Ltd.

Honda Motor Co., Ltd. (TSE:7267/NYSE:HMC/LSE:HNDA.L) is one of the leading manufacturers of automobiles and power products and the largest manufacture of motorcycles in the world. Honda has always sought to provide genuine satisfaction to people worldwide. The result is more than 120 manufacturing facilities in 30 countries worldwide, producing a wide range of products, including motorcycles, ATVs, generators, marine engines, lawn and garden equipment and automobiles that bring the company into contact with over 19 million customers annually. For more information, please visit http://world.honda.com .

Source: Honda Motor Co., Ltd.

Contact:

Honda Motor Co., Ltd.
Media Inquiries
corporate_pr@hm.honda.co.jp
 81-3-5412-1512

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