Bekasi, West Java, September 8, 2004 --- P.T.Astra Honda Motor Inc., Honda's joint venture company in Indonesia responsible for motorcycle production and sales, today announced it has begun construction of its third manufacturing plant. The new plant will be located in MM2100 Industrial Town in Bekasi, 33 kilometers southeast of Jakarta. The total investment is expected to be approximately US$100 million (equivalent to ¥11 billion^*1) and the plant will become operational in October 2005 with an annual capacity of approximately 1 million units.

Honda began production of motorcycles in Indonesia in 1971 with a technical partnership with P.T.Federal Motor. In 2000, P.T.Astra Honda Motor Inc., a 50/50 joint venture between P.T.Astra International and Honda, was established to pursue production of motorcycle parts, motorcycle engine and chassis assembly, and sales. In 2003, P.T.Astra Honda Motor became Honda’s first overseas operation to achieve cumulative motorcycle production of 10 million units. The motorcycle market in Indonesia, the third largest in the world, expanded to 3.1 million units in 2003, a 22% increase from 2002. As the market is expected to grow even more in 2004 to approximately 4 million and beyond, Honda is enhancing its production capacity by adding a new plant, to swiftly respond to the increasing demands.