Mazda Reports Significant Profit Gains in First Half of Fiscal Year 2003

Tokyo, Japan, Nov. 06, 2003 - (JCN Newswire) - Mazda Motor Corporation
today announced solid profit improvements for the first half of FY2003
and confirmed that the company is on track to meet its full year
financial targets. Compared with the same period a year earlier,
consolidated revenue increased by 4 percent to 1,209.5 billion yen,
operating profit was up 94 percent to 28.4 billion yen and net income
doubled to 11.2 billion yen.

Highlights include:

-Operating profit up 94 percent to 28.4 billion yen
-Net income doubled to 11.2 billion yen
-Consolidated wholesales up 6 percent 
-On track to achieve full year targets

The company's improved profitability in the first half was achieved
through stronger sales, notably in Europe, China and Australia,
favorable exchange rates and continued cost reduction efforts. For
example, product cost actions contributed to a 13.6 billion yen
improvement in the company's operating profits for the first half.

Mazda President and CEO Hisakazu Imaki said, "As we have noted before,
the Millennium Plan put us on the right course. We are seeing the
product-led growth we predicted and this will be accelerated further
with the newly introduced Axela/Mazda3. The road ahead, though, is not
getting easier, so I remain cautious. We must stay focused and achieve
our cost reduction and sales targets." 

Financial results for the first half of FY2003

Consolidated revenue for the first half of FY2003 was 1,209.5 billion
yen (US $10.9 billion, 9.4 billion euros), an increase of 50.2 billion
(US $451 million, 388 million euros) from the same period of the
previous year. Operating profit was 28.4 billion yen (US $255 million,
220 million euros), an increase of 13.8 billion yen (US $124 million,
107 million euros) from the same period of the previous year. Ordinary
profit was 19 billion yen (US $171 million, 147 million euros), an
increase of 9.9 billion yen (US $89 million, 77 million euros) from the
same period of the previous year. Net income was 11.2 billion yen (US
$101 million, 87 million euros), an increase of 5.7 billion yen (US $51
million, 44 million euros) from the same period of the previous year.

Consolidated cash flow for the first half of FY2003 was negative 21.8
billion yen (US $196 million, 169 million euros). This was due in part
to an increase in inventory levels to support new model launches. Net
debt was 428.1 billion yen (US $3.8 billion, 3.3 billion euros). While
this represented a 24.6 billion yen (US $221 million, 190 million euros)
increase from the prior year-end level, the net debt-to-equity ratio was
unchanged at 208 percent. 

Financial projection for FY2003 (consolidated basis)

Mazda's full-year targets for profits and cash flow remain unchanged.
Sales are projected to reach 2,500 billion yen, up 6 percent over a year
ago, and operating profit is projected to be 65 billion yen, up 28
percent. With these results, FY2003 will mark the third consecutive
fiscal year of increased revenue and profit and the company's best
performance in a decade.

Nevertheless, FY2003 will continue to be a challenge with full-year
industry demand in Japan, North America and Europe predicted to decline.
Mazda projects its new-generation products will continue to drive
increased retail sales in key markets. European sales should remain
strong, and the company will continue to see record-setting sales in
China and Australia. Retail sales in Japan and the US should be up
slightly from year earlier levels. Additionally, the company's full-year
results will benefit from further cost cutting and favorable exchange
rates.

The launch of Mazda's fourth, new-generation product - the Axela/Mazda3
- will be a highlight of the second half of FY2003. As with the
Atenza/Mazda6, Demio/Mazda2 and RX-8, the new Axela/Mazda3 is already
proving popular with consumers and the media. The Axela/Mazda3, for
example, is one of the seven finalists for European Car of the Year.

Projected financial results for FY2003 (from April 1, 2003 to March 31,
2004) are generally unchanged from earlier projections: 


Sales revenue:    2,500 billion yen (US $22.5 billion, 19.3 billion
euros)
                    Up 135.5 billion yen from FY2002 
                    (US $1,218 million, 1,049 million euros) 
Operating Profit: 65 billion yen (US $584 million, 503 million euros)
                    Up 14.4 billion yen from FY2002 
                    (US $129 million, 111 million euros) 
Ordinary Profit:  57 billion yen (US $512 million, 441 million euros)
                    Up 16.3 billion yen from FY2002 
                    (US $147 million, 126 million euros) 
Net income:       30 billion yen (US $270 million, 232 million euros)   
                    Up 5.9 billion yen from FY2002 
                    (US $53 million, 46 million euros) 
Cash flow is projected to be positive 40 billion yen (US $360 million,
310 million euros). 

Dollar equivalents calculated at 111.25 yen to the dollar (exchange rate
prevailing on September 30, 2003). 
Euro equivalents calculated at 129.22 yen to the euro (exchange rate
prevailing on September 30, 2003).