Yamaha Confident It Will Ultimately Prevail as the ITC Investigation Unfolds

KENNESAW, Ga., Feb. 23, 2004 -- The United States International Trade Commission (ITC) today voted to continue the investigation into the allegation by Mercury Marine, a division of Brunswick Corporation, that outboard engines from Japan are being sold at unfair prices and injuring the domestic producers. The ITC vote came at the end of a preliminary investigation to determine whether there is sufficient evidence of injury to continue with the investigation. Because the threshold for this determination is very low, Yamaha was not surprised. Indeed, it is very unusual for the ITC not to continue an investigation at this stage.

Yamaha participated in the ITC's staff conference held on January 29 and submitted voluminous information demonstrating that Mercury's problems stem from its reputation for poor quality and its failure to build and market a full line-up of four-stroke outboard engines. Yamaha also documented that the low price leader in the market is a U.S. manufacturer not Yamaha or other Japanese producers. These points were also made at the staff conference by four industry leading boat manufacturers in the United States: Genmar, Godfrey Marine, Grady White and Maverick Boat Company. Four independent dealers from across the country confirmed that the same problems are affecting Mercury in the repower market.

Commenting on the ITC decision, Yamaha Marine Group President Phil Dyskow said: "This early decision simply reflects the low threshold imposed on the ITC for continuing the case not the realities of the marketplace. Mercury's problems were created by Mercury not by Yamaha or other Japanese producers. Its attempt to get the U.S. Government to protect it from competition will do nothing to address these problems. We believe that the full investigation, as disruptive as it may be for the entire marine industry, will not support Mercury's allegations."

The investigation will now proceed at the Department of Commerce which will examine whether the Japanese producers are selling in the United States at prices which constitute "dumping." If the Department finds dumping, then the investigation will go back to the ITC for a final injury determination, one in which Mercury will actually have to demonstrate injury. According to Dyskow: "With the continued strong support from dealers and boatbuilders, we don't see how the ITC could find in Mercury's favor in the final investigation. We remain confident that the final result will be a good one for Yamaha and the entire marine industry."