Honda Motor Co. Reports Q3 and The Nine Months Ended December 31, 2000

    TOKYO, Feb. 15 Honda Motor Co., Ltd. today announced its
unaudited consolidated financial results for the fiscal third quarter and the
nine months ended December 31, 2000.

    Third Quarter Results

    Honda's consolidated net income for the fiscal third quarter ended
December 31, 2000 totaled 47.3 billion yen ($412 million), a decrease of 25.2%
from the same period in 1999.  Net income per Common Share, both on a basic
and fully diluted basis, for the quarter amounted to 48.58 yen ($0.42),
compared to 64.97 yen for the same period in 1999.  Each of Honda's American
Depositary Shares represents two Common Shares.

    Consolidated net sales and other operating revenue (herein referred to as
"revenue") for the fiscal third quarter amounted to 1,576.1 billion yen
($13,735 million), an increase of 8.8% from the same period in 1999.  This
increase in revenue was primarily due to increased unit sales in motorcycles
and automobiles, together with currency translation effects, which had a
positive impact on foreign currency-denominated revenue from Honda's overseas
subsidiaries, translated into yen.  Honda estimates that had the exchange rate
of yen remained unchanged from the same period in 1999, revenue for the
quarter would have increased by approximately 7.2%.

    Consolidated operating income for the fiscal third quarter totaled
96.3 billion yen ($839 million), a decrease of 8.9% compared to the same
period in 1999.  This decrease in operating income was primarily due to the
depreciation of the euro and an increase in selling, general and
administrative expenses, which undermined an increase in revenue and Honda's
ongoing cost reduction efforts.

    Consolidated income before income taxes for the quarter totaled
84.9 billion yen ($740 million), a decrease of 18.7% from the same period in
1999.

    With respect to Honda's sales in the fiscal third quarter by business
category, motorcycle unit sales increased 19.2% to 1,267,000 units, and
revenue increased 10.6%, to 171.7 billion yen ($1,497 million).  This increase
in unit sales was due primarily to higher sales in such Asian countries as
Indonesia and Thailand.

    Honda's unit sales of automobiles increased by 3.5% to 644,000 units, due
primarily to the introduction of the Stream new minivan and the remodeled
Civic in Japan, together with sales of the Acura MDX new sport utility vehicle
introduced in North America. Revenue increased 9.4%, to 1,304.8 billion yen
($11,372 million) during the quarter.

    Unit sales of power products totaled 769,000 units, a decrease of 22.6%
compared to the same period in 1999.  Lower sales of Honda's general-purpose
engines in Europe and North America were the major factor to this decrease.
Revenue from other businesses, including the power product business and
financial services, decreased by 1.0% to 99.4 billion yen ($867 million).

    Nine-Month Results

    Honda's consolidated net income for the fiscal nine months ended December
31, 2000 totaled 169.2 billion yen ($1,475 million), a decrease of 15.2% from
the previous year.  Net income per Common Share for the fiscal nine months,
both on a basic and fully diluted basis, amounted to 173.68 yen ($1.51),
compared to 204.93 yen for the corresponding period a year ago.

    Unit sales of Honda's motorcycles and automobiles increased and
consolidated net sales and other operating revenue (herein referred to as
"revenue") for the nine months amounted to 4,628.0 billion yen
($40,331 million), an increase of 3.3% from last year.  Revenue included the
negative effect of currency translation, and Honda estimates that had the
exchange rate of the yen remained unchanged from the previous year, revenue
for the year would have increased by approximately 8.0%.

    Consolidated operating income for the fiscal nine months totaled
297.8 billion yen ($2,595 million), a decrease of 11.2% compared to the
corresponding period last year.  Despite an increase in revenue and Honda's
ongoing cost reduction efforts, the negative impact of the appreciation of the
yen as well as an increase in research and development expenses were the major
factors for this decrease in operating income.

    Consolidated income before income taxes for the fiscal nine months totaled
276.9 billion yen ($2,414 million), a decrease of 16.3% compared to the
previous year.

    With respect to Honda's sales for the nine-month period by business
category, motorcycle unit sales increased by 18.8% to 3,812,000 units, and
revenue increased 12.2% to 563.6 billion yen ($4,912 million).  Unit sales
increased in such Asian countries as Indonesia and India as well as in North
America during the period, which offset decreased unit sales in Japan and
Europe.

    Honda's unit sales of automobile increased by 3.9% to 1,886,000 units, and
revenue increased 2.4% to 3,762.1 billion yen ($32,786 million) for the
nine-month period.  Strong sales of the Odyssey both in Japan and North
America, together with higher sales of the Accord in China were the primary
contributors to these increases.

    Unit sales of power products totaled 2,592,000 units, a decrease of 6.2%
compared to the corresponding period of the previous year.  Lower sales in
North America and Europe undermined an increase in unit sales in Asia outside
of Japan.  Honda's other businesses, including power products and financial
services, showed a 1.0% decrease in revenue, amounting to 302.2 billion yen
($2,634 million).