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May 23 , 2001

Honda to Integrate Motorcycle Sales in Japan

Tokyo, May 23, 2001 --- Honda Motor Co., Ltd., announced today that it plans to establish Honda Motorcycle Japan Co., Ltd. (referred to as "HMJ"), an integrated motorcycle sales company that will strengthen its motorcycle business operations in Japan.

The new company, with headquarters in Tokyo, will combine all Honda motorcycle sales functions and supervise the overall motorcycle business in Japan. HMJ will start operations on August 1, 2001.

HMJ will integrate three existing wholesale companies, Honda Nirin Higashi-Nihon Co., Ltd., Honda Nirin Chubu Co., Ltd. and Honda Nirin Nishi-Nihon Co., Ltd. The new company also will assume the functions of Honda's Motorcycle Sales Division, Regional Sales Operations (Japan) and the divisions supporting domestic motorcycle sales in Japan.

These changes will enable HMJ to handle all functions in motorcycle sales operations, including motorsports-related activities and advertising, as well as such sales functions as product planning, marketing, new motorcycle sales, used motorcycle sales, parts and accessories sales.

This integration will also enable HMJ to oversee market-oriented product planning and sales activities from a vantage point in close touch with customer needs, leading to more efficient operations and increased customer satisfaction. HMJ is aiming for motorcycle sales of 500,000 units in Japan in fiscal year 2003.

Specific plans include the following:

	Sales centers will be concentrated from the current 14 centers of three wholesale companies to four centers of HMJ (Tokyo, Nagoya, Osaka and Fukuoka).
	IT (information technology) will be utilized in ordering system for motorcycles and parts and service-related information will be provided electronically via a web site, as part of efforts to reinforce sales operations.
	To improve efficiency, order receiving operations for motorcycles currently conducted at the 14 sales centers will be centralized to the new Motorcycle Order Receiving Center. The order receiving operations for parts currently conducted at seven centers nationwide also will be centralized to the Parts Order Receiving Center. Both new centers will be located at HMJ's Head Office.
	The current nine logistics centers will be combined into three centers. Deliveries to dealers will be handled directly by Honda based on orders placed by HMJ.
	Used motorcycle operations will be expanded and the parts customization business will be reinforced with the aim of expanding into new business areas.

Honda established its Regional Sales Operations (Japan) in April 2001, as part of its effort to achieve self-reliance in regional business operations, to handle all responsibilities in sales-related areas for all product categories including motorcycles, automobiles, power products and parts and accessories in Japan. Honda established HMJ based on its policy of promoting self-reliance in regional operations, with the aim of achieving more market-oriented motorcycle operations in Japan.

Profile of Honda Motorcycle Japan Co., Ltd.

*Name of company	:	Honda Motorcycle Japan Co., Ltd.
*Capital	:	496.8 million yen
*Planned date of foundation	:	August 1, 2001
*Planned number of employees	:	approx. 600 employees

Domestic Motorcycle Sales Operations

Current		New (August 1, 2001 onward)

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