CONSOLIDATED Financial Summary for the Fiscal First Half Ended September 30, 2008

JCN Newswires, Oct 28, 2008

Tokyo, Oct 28, 2008 - (JCN Newswire) - Honda Motor Co., Ltd. announced its consolidated financial results for the first half of the current fiscal year ended September 30, 2008.

Consolidated net sales and other operating revenue amounted to JPY 5,694.0 billion, a decrease of 3.5% compared to the same period a year ago, due to factors including the negative impact of currency translation.

Consolidated operating income amounted to JPY 370.1 billion, a decrease of 27.1% compared to the same period a year ago, due to the negative impact of currency effects, the impact of increased raw material costs, and increases in selling, general and administrative (SG&A) expenses, despite the positive effects of higher

transaction price and continuing cost reduction efforts.

Income before income taxes amounted to JPY 384.5 billion, a decrease of 21.2% compared to the same period a year ago.

Equity in income of affiliates totaled JPY 65.4 billion, an increase of 3.5 compared to the same period of a year ago, increasing in the fiscal first half for the 9th consecutive year and achieved an all-time record for any fiscal first half due mainly to increased income of affiliates in Asia accounted for under the equity method.

Net income amounted to JPY 302.9 billion, a decrease of 19.1% compared to the same period a year ago. At the board of directors meeting held today, Honda resolved to pay 22 yen per share for the fiscal second quarter dividend with the record date of September 30, 2008. The total annual dividend to be paid for the fiscal year is expected to be 88 yen per share.

Results for Fiscal First Half Ended September 30, 2008

JPY (billions)

-----------------------------------------------------------------------------
                      First Half ended   First Half ended     Difference
                       Sept. 30, 2007     Sept. 30, 2008      (% changed)
-----------------------------------------------------------------------------
Net sales and other         5,902.4          5,694.0          -208.3 (- 3.5)
 operating revenue
-----------------------------------------------------------------------------
Operating income              508.0            370.1          -137.8 (-27.1)
-----------------------------------------------------------------------------
Income before income          488.2            384.5          -103.6 (-21.2)
    taxes(*1)
-----------------------------------------------------------------------------
Equity in income of            63.2             65.4             2.2 (  3.5)
    affiliates
-----------------------------------------------------------------------------
    Net income                374.6            302.9           -71.6 (-19.1)
-----------------------------------------------------------------------------
Basic net income per      JPY 206.26       JPY 166.94       JPY-39.32(-19.1)
    common share
-----------------------------------------------------------------------------

*1: Income before income taxes = Income before income taxes, minority interest and equity in income of affiliates

Honda's average rates for the current fiscal first half: JPY 106 = U.S. dollar 1 /JPY 163 = Euro 1

Honda's average rates for the previous fiscal first half: JPY 119 = U.S. dollar 1 / JPY 162 = Euro 1

-Consolidated unit sales. (Consolidated unit sales consist of sales of finished products sold by Honda and its consolidated subsidiaries, and sales of parts for local production at Honda's affiliates accounted for under the equity method.)

Motorcycles: 5.608 million units ( 22.3%); the increase was due mainly to increased sales of parts used for local production in Asia by Honda affiliates accounted for under the equity method. This is the first time in 2 years to achieve a year-on-year increase, achieving an all-time record for any fiscal quarter as well as any fiscal first half. (Unit sales of approximately 2.48 million units of Honda-brand

motorcycle products are not included in the total listed above, in conformity with U.S. generally accepted accounting principles, because they are manufactured and sold by overseas affiliates accounted for under the equity method, but do not use any parts supplied by Honda and its consolidated subsidiaries.)

Automobiles: 1.897 million units ( 0.7%); the increase was due to increased sales in Asia and the other regions which includes Brazil. This is the 10th consecutive year for an increase in the fiscal first half and the achievement of all time record unit sales.

Power Products: 2.541 million units (-8.8%); the decrease was due mainly to decreased sales in North America and Europe.

Forecast for the Fiscal Year Ending March 31, 2009

-Honda plans to sell 10.835 million units of motorcycles ( 16.3%), 4.015 million units of automobiles ( 2.3%) and 5.63 million units of power products (-7.0%). (Unit sales of approximately 4.87 million units of Honda-brand motorcycle products are not included in this total, in conformity with U.S. generally accepted accounting principles, because they are manufactured and sold by overseas affiliates accounted for under the equity method, but do not use any parts supplied by Honda and its consolidated subsidiaries.)