Honda Builds New Automobile Plant in Japan With Annual Production Capacity of 200,000 Units

Tokyo, Japan, May. 17, 2006 - (JCN Newswire) - Honda Motor Co., Ltd.
announced plans to build a new auto plant in Yorii, Osato county,
Saitama prefecture. This new plant will begin operation in 2010 with
annual production capacity of approximately 200,000 units of engines and
finished automobiles.

The town of Yorii is located in the northwestern part of Saitama
prefecture, approximately 35 kilometers away from Sayama city, where
Honda's existing Saitama Factory (Sayama plant) is located. After the
new Yorii plant becomes operational, Honda will renovate Sayama Plant to
make it the most advanced production operation.

Honda plans to begin construction of the new plant in a few years on a
lot size of about 800,000 square-meters, with plans to begin operation
of the new plant in early 2010. Related investment is expected to be
approximately 70 billion yen, with an employment of roughly 2,200
associates at the time of production start.

When the new plant becomes operational, Honda's total annual production
capacity in Japan will be increased from the current 1.3 million units
to 1.5 million units.

"Honda will establish a high quality and highly efficient manufacturing
system by applying the latest technologies," said Takeo Fukui, president
& CEO of Honda Motor Co., Ltd. "The new plant will be responsible for
evolving these manufacturing systems to other Honda operations across
the world."

Reference: Honda's Existing Automobile Production Plants in Japan


Saitama Factory (Sayama Plant) in Sayama, Saitama Prefecture

Establishment:                May, 1964  
Size:                         461,000 square-meters (m2)
Employment:                   5,376 associates
Annual production capacity:   approximately 520,000 units 
Models produced:              Suzuka Factory in Suzuka, Mie Prefecture

Suzuka Factory in Suzuka, Mie Prefecture

Establishment:                April, 1960 
Size:                         1,128,000 square-meters (m2)  
Employment:                   7,032 associates 
Annual production capacity:   approximately 540,000 units  
Models produced:              Civic, Fit, Airwave, Life, etc.

Yachiyo Industry Co., Ltd. Yokkaichi Factory in Yokkaichi, Mie
Prefecture

Establishment:                August, 1985 (start of consignment
production)
Size:                         17,300 square-meters (m2)  
Employment:                   1,260 associates  
Annual production capacity:   approximately 240,000 units 
Models produced:              Vamos, Zest, Acty, etc. 



About Honda Motor Co., Ltd.

Honda Motor Co., Ltd. (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.

For further information, please visit the Honda Motor Co., Ltd. home
page at: world.honda.com <http://world.honda.com> 

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