Honda Soltec Commemorates Opening of Solar Cell Production Plant; Accelerating Honda's Energy Creation Business

Tokyo, Japan, Nov 12, 2007 - Honda Soltec Co., Ltd., Honda's wholly-owned solar cell subsidiary, today commemorated the opening of its solar cell production plant with a ceremony attended by approximately 80 dignitaries, guests and Honda officials, including Yoshiko Shiotani, the governor of Kumamoto prefecture; Junichi Mitsuyama, the deputy general manager of Natural Resources, Energy and Environment Department, Kyushu Bureau of Economy, Trade and Industry, the Ministry of Economy, Trade, and Industry (METI); and Isao Ieiri, the mayor of Ohzu-machi; as well as Takeo Fukui, the president and CEO of Honda.

Using thin film made from a compound of copper, indium, gallium and selenium (CIGS) instead of silicon, Honda's next-generation solar cell achieves a major reduction of approximately 50% in the amount of energy consumed during the manufacturing process compared to what is required to produce conventional crystal silicon solar cells. This makes Honda's solar cell more environmentally-responsible even during the production stage.

Honda Soltec began mass production of solar cells in October, and the annual production will reach the full capacity of 27.5 megawatts (an equivalent amount of electricity to power approximately 9,000 houses) by next spring. The company has also begun sales of solar cells for homes throughout Japan with 80 distributor locations and plans to accelerate sales by increasing the number of distributor locations to more than 200 within 2008. Honda will also work to begin exports of Honda solar cells from its new operation based in Kumamoto.

In 2006, Honda announced a global CO2 reduction target for its products and the manufacturing of those products. In addition to its effort to reduce CO2 emissions, Honda is focusing on the development and sales of energy-creation products such as cogeneration units and thin film solar cells in order to further accelerate its efforts to reduce the threat of global warming.

To reduce its environmental footprint, Honda has been proactively pursuing voluntary targets to make its automobiles, motorcycles, and power products cleaner and to reduce CO2 emissions. At the same time, Honda has been committed to develop technology for a clean energy source which does not use fossil fuels. In addition to the development of new technology to produce ethanol from cellulose, and development and sales of fuel cell vehicles and household cogeneration units in Japan and the U.S., the commercialization of the next-generation solar cells enables Honda to accelerate its efforts to contribute to the realization of an environmentally-responsible and sustainable society.

About Honda Soltec Co., Ltd.

Establishment:         December 1, 2006
Headquarters:          Honda Motor Co., Ltd. Kumamoto Factory
                       1500 Hirakawa, Ohzu-machi, Kikuchi-gun, Kumamoto
Sales Office:          Wako-shi, Saitama
Capital Investment:    4 billion yen
Capitalization ratio:  100% Honda Motor Co., Ltd.
President:             Akio Kazusa
Employment:            Approximately 150 associates (at full production)
Production Capacity:   Approximately 27.5MW
                       (approx. for 9,000 houses with 3kW system)

Solar Cell Module Specifications

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                                HME125PA                  HME115PA
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Type                                           CIGS
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Maximum output/module(W)          125*                      115*
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Size(mm)                                 1,417 x 791 x 37
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Weight(kg)                                     14.3
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Manufacturer's suggested 
retail price(tax inclusive)      60,375                    52,290
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(price exclusive of tax)        (57,500)                  (49,800)
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* This figure for the maximum output was measured by Honda under the 
conditions of AM1.5, solar radiation intensity of 1kW/m2, and module 
temperature of 25 degrees Celsius.
* Operating ambient temperature range: 40 to -20 degrees Celsius.
* Maximum output will differ depending on solar radiation intensity, 
installation conditions (direction, angle, surrounding environment), 
geographical area, and temperature conditions.

About Honda Motor Co., Ltd.

Honda Motor Co., Ltd. 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