Honda Announces Establishment of Local Subsidiary in Russia

Tokyo, Japan, Apr. 23, 2004 - (JCN Newswire) - Honda Motor Co., Ltd.
has announced the establishment of a fully-owned
subsidiary in Russia to strengthen its local motorcycle, automobile and
power product sales operations in the rapidly expanding Russian market.
The new subsidiary named, Honda Motor RUS LLC is located in Moscow and
will be responsible for strengthening Honda's sales operations as well
as overseeing logistics, after-service, advertising and public relations
functions.

The Russian automobile market has made a strong recovery since the
economic crisis in 1998 reflected by growth in annual automobile sales
from approximately 900,000 units in 2000 to 1.20 million units in 2003.
Annual sales of imported automobiles quadrupled to over 190,000 units
during this same period and are expected to continue expanding in the
future. Elimination of the consumption tax, a reduction of VAT from 20%
to 18% in January of this year as well as the anticipated participation
of Russia in the WTO within the next few years, are expected to further
contribute to economic growth in the region and to further expansion of
the automobile market. Honda's automobile sales target for 2004 is 4,800
units (+34% compared to 2003).

Company Outline 


Company name :        Honda Motor RUS LLC 
Registration :        February 18, 2004  
Location :            Moscow 
Total capital :       30 million rubles (approx. USD 1 million) 
Investment ratio :    Honda Motor Co., Ltd. 100% 
Number of employees : 30 (approx.) 
Business activities : Import, sales and after-service of motorcycles,

                      automobiles and power products 



About Honda Motor Co., Ltd.

Honda is one of today's leading manufacturers of
automobiles and power products and the largest manufacture of
motorcycles in the world. Honda has always sought to provide genuine
satisfaction to people worldwide. The result is more than 120
manufacturing facilities in 30 countries worldwide, producing a wide
range of products, including motorcycles, ATVs, generators, marine
engines, lawn and garden equipment and automobiles that bring the
company into contact with over 17 million customers annually.For further
information, please visit the Honda Motor Co., Ltd. home page at:
www.honda.co.jp <http://www.honda.co.jp> 

Contact
Honda Motor Co., Ltd.
Masaya Nagai
masaya_nagai@hm.honda.co.jp
+81-3-5412-1512