Yamaha Marine Group Reports Record Year, Sets Strategy for Future

KENNESAW, Ga., Feb. 13, 2006 -- Yamaha Marine Group, a unit of Yamaha Motor Corporation USA, today announced record results for its marine business in 2005 and revealed its strategy to become a more autonomous stand-alone organization so that it can better serve its U.S. customers.

"We have come a long way in this market thanks to strong products, an outstanding dealer body and dedicated OEM boat builder partners," said Phil Dyskow, Yamaha Marine Group President.

The Marine Group reported only a modest unit sales growth, but strong mix growth which resulted in record revenue for the 2005 calendar year, despite hurdles that included two devastating hurricanes, higher fuel prices and a legal challenge by a competitor that alleged dumping, a case which Yamaha ultimately won.

Yamaha Marine Group's profit generated from the sale of outboard motors in 2005 rose more than 40 percent over the previous year. In addition, all three of Yamaha's boat companies, Skeeter, G3 and Century, showed a clear, healthy profit for the year. Yamaha Marine Group currently maintains approximately 1/3 market share for all outboard motors in the United States, with even greater share in the high-horsepower segments that are dominated by 4-stroke engines.

"Our 2005 results are not only great news for us, but for our dealers and OEM partners," said Dyskow. "This is our seventh consecutive year of growth, and the resulting profitability is what now allows us to invest in the future and maintain our collective success. Creating a more autonomous structure will let us manage all the functions that impact the boaters' experience."

In the last 18 months, the company created a dedicated headquarters-based customer service group. Previously, the function had been handled within Yamaha's larger corporate structure and did not have line responsibility to the marine unit.

Early last month, Yamaha Marine Group created a dedicated marine rigging and parts group, a function that had also formerly operated outside of the marine unit's structure. With the new structure in place, Yamaha will concentrate on supplying complete power systems to its OEM and retail customers, rather than just outboards. The company believes the move will significantly improve the consumer experience.

"In our industry, issues often emerge when the outboard is not matched to the boat or properly integrated with the boat's other components," said Dyskow. "If we integrate the boat and the outboard through a system concept, we will meet or exceed the boaters' expectations. That's our plan."

In addition, Yamaha is investing in and expanding its production and distribution resources as part of a comprehensive effort to handle increased business and better support its customers by shortening transit times.

Yamaha Marine continues to invest in training and currently offers the most comprehensive program in the marine outboard industry. Called Yamaha University, it aims to support Yamaha dealers by providing programs that concentrate on improving profitability and customer satisfaction.

Yamaha Marine recently announced broader participation in and sponsorship of FLW Outdoors' fishing tournaments, which gives the company a significant means of supporting and maintaining relationships with the ultimate boating consumer.

Yamaha Marine products are marketed throughout the United States and around the world. Yamaha Marine Group, based in Kennesaw, Ga., supports its 2,200 dealers and OEM partners with marketing, training and parts for Yamaha's full line of products and accessories and strives to be the industry leader in reliability, technology and customer service. Yamaha Marine is the only outboard engine maker to have earned the marine industry's C.S.I. Customer Satisfaction Index award every year since its inception. For more information, call (800) 88-YAMAHA or visit http://www.yamahaoutboards.com/ .