Tokyo, October 31, 2000 - Honda Motor Co., Ltd. today announced that Honda U.K. Manufacturing Ltd. (HUM) will export the next generation CR-V compact sport utility vehicle to the North American market. The decision follows their plan, announced in September this year, to export HUM's new Civic 3-door model to the Japanese market and represents a greater role for Honda's European operations in the company's global strategy.

The new plan demonstrates Honda's significant speed and flexibility in changing product supply plans on a global scale. Currently, Honda is implementing its New Manufacturing System in its major plants around the world--including HUM--to increase the speed, efficiency and flexibility of Honda's global production system.

As a result, the next generation CR-V model will be supplied to the North American market both from Japan and the U.K.

HUM is currently undergoing expansion to a 250,000-unit annual capacity, with a second plant scheduled to begin production in the summer of 2001. The introduction of additional export production will allow HUM to achieve faster utilization of full capacity.

This new product supply strategy represents Honda's response to the rapidly changing business environment in Europe, including the depreciation of the Euro. The new strategy also makes efficient use of Honda's global resources - simultaneously taking full advantage of the capacity at HUM and helping Honda meet the strong demand in North America and the 900,000 unit annual sales target in Japan.

Honda's previously announced plans to begin production of a new small vehicle at HUM have been postponed. This new B-category vehicle will now initially be supplied from Japan.

Through its global product supply network, Honda expects to maintain global competitiveness and the ability to meet changing market conditions and customer needs.