Honda to Produce Rubicon in South Carolina

13 May 2000

LINE-OFF CEREMONY HELD FOR HONDA'S LARGEST ATV


TIMMONSVILLE, S.C. - Honda of South Carolina Mfg., Inc. (HSC) today conducted a
line-off ceremony to celebrate the manufacturing of the largest ATV Honda has
ever made, the 500cc FourTrax Foreman Rubicon featuring the Hondamatic
continuously variable transmission. At full capacity, Rubicon production will
reach 180 units a day and will represent approximately 30% of HSC's annual
production of 150,000 units a year.

The Rubicon announcement follows HSC's recent announcement in January to build a
new $20 million engine manufacturing operation to support its existing
all-terrain vehicle (ATV) plant in Timmonsville. The expansion increases
Honda$B!G(Bs total investment at HSC to more than $70 million. When Rubicon
production and the new engine operation reach full capacity in 2001, HSC will
have an annual production capacity of 150,000 ATVs and engines and will employ
approximately 625 associates.

HSC began ATV production in July, 1998 using both domestic and globally-sourced
parts.    "This expansion is consistent with Honda$B!G(Bs strategy of starting small
and growing larger as our local capabilities grow and as demand increases," said
HSC President Yoshiki Ishida. "Basically, our philosophy is to manufacture the
products where we sell them," stated HSC Senior Vice President Bill Kalp.

Honda's Rubicon is the first ATV to feature an automatic transmission that is
beltless. The hydromechanical design, with over 100 patents pending, is compact,
quiet, maintenance-free and very rugged. The Hondamatic also features true
engine braking, unlike belt-drive designs.

Honda$B!G(Bs ATV sales in America grew nearly 24% percent in 1999. "The ATV market
is very strong today, and Honda leads all ATV manufacturers, selling nearly 1
out of every 3 ATVs purchased in America," said Ray Blank, American Honda's
Motorcycle Division Vice President. HSC is also producing for a global market
with 20 percent of its products exported to countries including Australia, New
Zealand, and the United Kingdom.

HSC now produces six ATV models: the FourTrax Foreman series includes the
Rubicon, Foreman ES, Foreman S, and Foreman 400; the Sportrax

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