Tokyo, October 26, 2000 - Honda Motor Co., Ltd. today introduced an all-new "DOHC i-VTEC" engine that derives its name from "intelligent" combustion control technologies that optimize fuel economy, boast cleaner emissions and achieve higher performance. A member of Honda's new generation "i-Series" engine lineup, DOHC i-VTEC is a compact, lightweight, high-performance 2-liter gasoline engine that makes its debut in the newly introduced "Stream" model in Japan.

DOHC i-VTEC is an "intelligent" engine that fuses world-class top fuel economy and cleaner emissions with high power and robust torque in all speed ranges. Key engine technologies include Honda's VTEC system, which varies the timing and amount of lift of the valves according to engine speed, and VTC (Variable Timing Control), which continuously adjusts the intake valve timing to best match the current engine load.

In addition, the DOHC i-VTEC engine also features a variable-length intake manifold, a rear exhaust system, and a new lean-burn NOx-adsorbing catalyzer^*1. Combined with the optimized valve function, these features help the engine achieve power output up to 113kW(154PS)/6500rpm^*2 as well as ample torque in all speed ranges, excellent 14.2km/liter^*3 fuel economy (which already fulfills 2010 fuel economy standards), and cleaner exhaust emissions (recognized by the Japanese Ministry of Transport's "Low Emissions Excellence" certification^*4. Further, a newly designed engine structure has enabled Honda to make the engine approximately 10% lighter and more compact than conventional 2-liter engines^*5.

Development of i-Series engines will continue, with expansion to the entire Honda 4-cylinder automobile lineup worldwide planned by 2005. As a result, all domestic Honda vehicles will earn the Japanese Ministry of Transport's "Low Emissions Excellence" certification by 2002, as well as the planned achievement of 2010 fuel economy standards in all production model automobiles by 2005.

Honda also is using the new i-Series as a springboard to enhance the speed, efficiency and flexibility of the company's powertrain manufacturing capabilities. This includes the establishment of a new engine manufacturing line within the Sayama Plant at the company's Saitama Factory. Through the new line, which became operational in August 2000, Honda manufactures engines in sequence with auto production. This greatly reduces both the amount of in-process floating stock and required production lead times. The new line at Sayama includes aluminum processing of cylinder blocks, machining and engine assembly. Designed for high efficiency and flexibility, the new line reduces the investment for new model introduction by half and can produce eight different engine types.

By the end of fiscal year 2001 (March 31, 2001), Honda will have invested 36 billion yen in changing over its domestic automobile manufacturing capabilities to the New Manufacturing System. By 2003 Honda also plans to complete the 15 billion yen innovation of its domestic powertrain manufacturing system. These new systems also will help Honda realize its "Green Factory" concept, which seeks to fully renovate the production process to meet the needs of 21st century production - reducing waste, energy use and emissions.

Honda designs, manufactures and markets automobiles, motorcycles and power products worldwide. Honda is the largest engine maker in the world, producing more than 11 million engines annually for its three product lines, including sales of engines to other manufacturers. Honda also builds products in more than 100 manufacturing plants in 33 countries, employing more than 125,000 associates globally.