Honda Motor Company Presents Consolidated Financial Summary for Fiscal Year Ended March 31, 2007, Forecast for Fiscal Year Ending March 31, 2008

Honda Achieved All-time Record for Consolidated Net Sales and Other Operating Revenue and Equity in Income of Affiliates for the Seventh Consecutive Fiscal Year with Increased Income in all Business Areas

TOKYO, Japan, April 25, 2007 – Honda Motor Co., Ltd. announced that in the fiscal year ended March 31, 2007, it achieved an all-time record for consolidated net sales and other operating revenue (herein referred to as “revenue”) for the seventh consecutive fiscal year which amounted to JPY 11,087.1 billion (+11.9%), due to increased revenue in all business areas.

Consolidated operating income amounted to JPY 851.8 billion (-2.0%), Income before income taxes totaled JPY 792.8 billion (- 4.5%), and net income was JPY 592.3 billion (-0.8%).

Operating income and income before income taxes for the previous fiscal year reflected the effect of a JPY 138 billion gain from the “Daiko-Henjyo” (the return of the substitutional portion of employees’ pension funds to the Japanese government), and net income reflected the effect of a JPY 82.8 billion gain from “Daiko-Henjyo”.

Honda realized an all-time record for equity in income of affiliates, with JPY 103.4 billion (+3.8%), for the seventh consecutive year due mainly to increased income of affiliates in Asia.

Honda plans for a year-end cash dividend of JPY 20. Combined with the interim cash dividend of JPY 30 per common share and the third quarter cash dividend of JPY 17 per common share, total cash dividends for the fiscal year ended March 31, 2007 are expected to be JPY 67 per common share. (As of July 1, 2006, one share of the Company’s common share was split into two. Had this stock split not been carried out, total annual dividends would have been an increase of JPY 34 per common share, to JPY 134.)

· Consolidated unit sales: All-time record unit sales were realized in the automobile and power product business areas. (The total includes fully finished products made by Honda and its subsidiaries as well as unit sales of fully finished products and parts produced locally by affiliates accounted for under the equity method.)

Motorcycles: 10.369 million units (+1.0%); the increase was due to higher sales in South America and India which offset decreased sales in Japan and North America.(Unit sales of approximately 2.86 million units of Honda-brand motorcycle products are not included in the total listed above, in conformity with U.S. generally accepted accounting principles, because they are manufactured and sold by overseas affiliates accounted for under the equity method, but do not use any parts supplied by Honda and its consolidated subsidiaries.)

Automobiles: 3.652 million units (+7.7%); the increase was due to higher sales in overseas markets, mainly in North America, Asia and Europe.

PowerProducts: 6.421 million units (+9.3%); the increase was due mainly to sales growth in North America and Europe.

· Consolidated revenue increased in all business areas and totaled JPY 11,087.1 billion (+11.9%), realizing an all-time record for the seventh consecutive year.

· Consolidated operating income totaled JPY 851.8 billion (-2.0%), due to a gain accounted for in the previous fiscal year from “Daiko-Henjyo”, in addition to a change in model mix, the impact of increased raw material costs, an increase in selling, general and administrative (SG&A) expenses and research and development (R&D) expenses, which offset the increased profit from revenue, cost reduction efforts, and the positive effect from the depreciation of the Japanese Yen.

· Income before income taxes totaled JPY 792.8 billion (-4.5%). Net income was JPY 592.3 billion (-0.8%).

· Consolidated operating income and income before income taxes for the previous fiscal year reflected the effect of the JPY 138 billion gain from the “Daiko-Henjyo”, and net income reflected the effect of the JPY 82.8 billion gain from the “Daiko-Henjyo”.

· Equity in income of affiliates totaled JPY 103.4 billion (+3.8%), achieving a seventh consecutive all-time record due mainly to the increased income of affiliates in Asia.

Results for the Fourth Quarter (January – March 2007)

· Consolidated revenue for the fiscal fourth quarter totaled JPY 3,087.8 billion (+9.0%), achieving a seventh consecutive all-time record. Operating income for the period was JPY 250.2 billion (-26.6%), income before income taxes was JPY 239.0 billion (-29.4%), equity in income of affiliates was JPY 19.9 billion (-12.2%), and consolidated net income totaled JPY 176.1 billion (-19.7%). (Operating income and income before income taxes for the previous corresponding period reflected the effect of the JPY 138 billion gain from the “Daiko-Henjyo”, and net income reflected the effect of the JPY 82.8 billion gain from the “Daiko-Henjyo”.)

Forecast for the Fiscal Year Ending March 31, 2008

· Honda is planning for unit sales totals of 10.33 million motorcycles, 3.935 million automobiles, and 6.505 million power products. (Unit sales of approximately 5.14 million units of Honda-brand motorcycle products are not included in the total listed above, in conformity with U.S. generally accepted accounting principles, because they are manufactured and sold by overseas affiliates accounted for under the equity method, but do not use any parts supplied by Honda and its consolidated subsidiaries)

· Honda will conduct its business operations based on the goals described in the following chart with assumption of the average currency exchange rate of JPY 115 = U.S. dollar 1 (average rate for the first half of the fiscal year: JPY 116, latter half of the fiscal year: JPY 113) and JPY 150= Euro 1 (first half: JPY 152, latter half: JPY 148).

Source: Honda Motor Co., Ltd.