Honda to Invest $30 Million in North Carolina Plant Increasing Annual Engine Production to 1.5 Million Units

    SWEPSONVILLE, N.C., Jan. 7, 2003; Honda Power Equipment Mfg.,
Inc. (HPE) today announced that it will invest approximately $30 million in
its Swepsonville, N.C. factory to add a third production line and make other
improvements to help meet growing demand for Honda's general purpose engines.
The move will increase HPE's capacity for multi-purpose power equipment
engines by 50 percent to 1.5 million units per year in 2004.  HPE produces
engines, lawn mowers and other products using domestic and globally-sourced
parts.
    The expansion will add about 200 new full-time Honda associates in
addition to seasonal employment.  HPE currently employs approximately
370 associates.  HPE will begin hiring new associates for the expansion in
early 2004.
    "This expansion will enable Honda to continue to meet customer demand for
our engines -- both for Honda products and as a supplier to other power
equipment makers," said Yoshihiko Toyozumi, president of HPE.  "Honda is proud
to be in North Carolina since 1984, and with this new growth we are expanding
our commitment to the people, state and region."
    Honda is the world's largest engine maker and the expansion of Honda's
North Carolina operations demonstrates Honda's emergence as one of the world's
leading power equipment manufacturers.  "The associates at HPE have quietly
assumed a leading role in Honda's global multi-purpose engine production
strategy," said Toyozumi.
    HPE has produced more than 5 million engines and more than 2.5 million
lawn mowers since it opened in August 1984.  HPE began production of the GC
160 engine series in June 2000.  This resulted in a tripling in annual
production capacity from approximately 300,000 engines used primarily for
Honda lawn mowers, to more than one million units for Honda products and for
sale to original equipment manufacturers (OEMs) for use in a range of
equipment including lawnmowers, pressure washers and generators.
    The new production line will have die casting, machining and assembly
operations.  It will begin mass production in spring 2004 and is expected to
reach full production by fall 2004.
    Cooperation with local and state officials was critical to Honda's ability
to move ahead.  "We wanted to expand in North Carolina, but it would have been
impossible without the commitment and support of local and state officials to
provide the necessary infrastructure to meet our growing needs," said
Toyozumi.  "The local community's partnership with Honda has been tremendous,
from necessary widening of the road, to upgrading the water, sewer and
electric power and assisting with job training.  We sincerely appreciate
everyone's efforts."
    HPE's current 142,000 square foot facility represents an existing capital
investment of $114 million.  The expansion will add approximately
70,000 square feet and a new assembly line to the plant.  Currently, two
assembly lines produce approximately one million engines per year.  HPE began
operation in 1984 with lawn mower assembly.  HPE also produces snow blowers,
water pumps and string trimmers.
    The GC series made in North Carolina is Honda's solution to the need for
quiet, efficient, and low emission engines specifically designed for home-use
power equipment applications.  The GC and GCV160 models are ideal for a
variety of consumer products, including lawn mowers, pressure washers, water
pumps, compressors, and other power equipment such as snow blowers and
tillers.
    Honda produces more than 15 million engines annually for its three product
lines -- automobiles, motorcycles and power products -- and for sales to other
manufacturers.  Honda designs, manufactures and markets its products in North
America and worldwide.  Honda currently builds products in 11 manufacturing
plants in North America, with three major research and development centers in
the U.S.  Honda employs more than 26,000 associates in North America.