Buenos Aires, December 12, 2005 --- Honda Motor de Argentina S.A., a Honda subsidiary in Argentina which imports and sells Honda automobiles, motorcycles, and power products, today announced plans to begin motorcycle production in mid-2006 in the city of Florencio Valera, Buenos Aires, Argentina.

Investing approximately US$1 million (approximately 120 million yen), the company will establish a production facility with annual production capacity of 15,000 units and begin production of the C105 Biz, a Cub-type motorcycle, which has been popular in the local market. The company will add 30 associates to begin production.

The motorcycle market in Argentina has been growing rapidly since 2002 (when the market size was approximately 13,000 units). Actual sales results for the entire market from January through November 2005 reached approximately 164,000 units- representing an increase of 200% over the total from the same period a year ago-, and Honda's sales for the same period also grew to 36,500 units - a more than 130% increase from the previous year. For 2005, Honda expects the market to grow to 175,000 units - an increase of more than 170% from the previous year-and Honda sales are also expected to set an all-time record of approximately 40,000 units - up 120% from the previous year. The motorcycle market in Argentina is expected to grow further and become the second largest motorcycle market in South America in the future.

Based on its philosophy to "build products close to the customer", Honda decided to begin local production in Argentina because the economy in Argentina is now stabilized and the future growth of the motorcycle market has become more promising. Honda will continue to be committed to meet the needs of this growing market and to provide products which exceed the expectations of customers.