Press Release

Honda Announces Grand Opening of Loudon, TN Parts Distribution Center

10/29/96

Honda Holds Grand Opening Ceremony For Loudon Parts Distribution
Center

LOUDON, Tenn., Oct. 25 -- American Honda held a ceremony
today to celebrate the opening of the company's new $30 million parts
distribution center, saying it will play an integral part in Honda's
nationwide parts operations.

"This is a significant investment for Honda, and a key component of
our expanding U.S. business operations," said Robert Weil, vice
president of American Honda Motor Co. "We're quite proud of this new
facility and very pleased to be part of the area's growing business
community."

Weil was joined by Congressman John J. Duncan, Jr.  and Loudon Mayor
Bernie "Inky" Swiney for the grand opening ceremony. The warehouse,
Honda's largest in North America, covers more than 800,000 square feet
and sits on 220 acres of land in Loudon.

The new facility will employ more than 70 people and will serve as one
of Honda's two central distribution points for delivery of parts and
accessories to Honda's nine regional parts centers in the U.S., which
in turn provide parts to more than 4,600 Honda automobile, motorcycle
and power equipment dealers throughout the country.

"This facility will carry parts from around the world, but mostly
parts made in North America," Weil said. "In 1996, Honda plans to
purchase close to $5 billion in U.S.  parts and materials for its
manufacturing and spare parts operations. Honda is now working with
over 350 parts suppliers in North America, including 15 in Tennessee."

The state-of-the-art warehouse facility will ship more than six
million Honda parts and accessories worth over $180 million
yearly. The warehouse employs a highly automated and virtually
paperless operating system.

Honda's recently announced "Strategy for the Americas" business plan
includes an increase in North American production capacity to 840,000
automobiles and 900,000 engines by 1998, as well as a doubling of
Honda's research and development capabilities in the U.S. More than 80
percent of Hondas sold in North America are built in North America
with more than 90 percent local content.