Lahore, Pakistan, September 5, 2005 --- Honda Atlas Cars (Pakistan) Ltd. (HACPL), Honda's automobile production and sales joint venture in Pakistan, today held a Manufacturing Capacity Expansion ceremony of its auto plant. The ceremony was attended by dignitaries and guests including Pakistan Prime Minister Shaukat Aziz, Federal Minister for Industries and Production and Special Initiatives Jahangir Khan Tareen, and other high ranking state government officials.

To meet ever-increasing demand for automobiles in Pakistan, where economic growth continues, HACPL will increase production capacity by expanding plant facilities and upgrading welding and painting equipment. The annual production capacity will be doubled from the current 25,000 units to 50,000 units by the end of 2006. Total investment for this expansion is expected to be approximately 1.67 billion rupee (approximately 2.9 billion yen^*).
* 1 rupee = 1.74yen

"Honda has been building a long-term partnership with Pakistan ever since we began motorcycle business here in 1960s, and Honda would like to continue making a contribution to the economy and society of Pakistan," said Mr. Satoshi Toshida, chief operating officer of Asia/Oceania Regional Operations for Honda Motor Co., Ltd.

The automobile market in Pakistan reached 133,000 units in 2004 - more than double the market size three years ago in 2001. Sales of the Honda Civic and City models continues to grow and total sales from January through July this year reached approximately 18,000 units - a 90% increase compared to the same period a year ago.