Dongfeng Honda Announces All-New Civic.

Beijing, China, Mar 20, 2006 - (JCN Newswire) - Dongfeng Honda Automobile Co., Ltd., the automobile production and sales joint venture in China of Honda and Dongfeng Motor Group Co., Ltd., today announced the debut of the all-new Civic passenger car, at a press conference held in Beijing. Top executives of Dongfeng Honda, including Mr. Zhou Wenjie, Chairman; Mr. Mitsuru Ozaki, President; and Mr. Liu Yuhe, Executive Vice President; attended the conference to explain product features and sales strategies as well as to announce the start of pre-order sales. The company has established a sales target of 50,000 units for 2006. The all-new Civic will go on sale April 22, through Dongfeng Honda's 90 exclusive dealers in China.

Since it was first introduced in 1972, the Civic has been sold in more than 160 countries around the world and achieved cumulative global sales of 16 million units, making it Honda's best selling single model. This 8th-generation Civic, developed with the concept of "a vehicle with a look, feel and drive that excites people," features improvements in all basic performance measures of an automobile, including driving performance, fuel economy, environmental friendliness, and packaging. Further, the all-new Civic represents a sensual level of high quality equivalent to the product segment that is one class above previous Civic models.

The all-new Civic features a newly developed 1.8-liter i - VTEC engine that combines off-the-line acceleration on par with a 2.0-liter engine together with fuel economy equivalent to that of a 1.5-liter engine while cruising. Overall, Civic achieves top level fuel economy within its class. Exterior styling features a one-motion form to create an advanced look, while the interior is designed to pursue fun driving, easy operation, and spaciousness. The advanced multiplex meter strategically positions meter displays to minimize the driver's eye movement while driving.

As for safety performance, the all-new Civic has achieved the highest 5-star level based on the Euro NCAP(New Car Assessment Program) safety performance standard in Europe, based on internal testing. In the area of environmental performance, the all-new Civic has met Euro 4, the emission regulation in Europe. Thus, the all-new Civic features industry leading performance in safety, the environment, and fuel efficiency, areas in which Honda puts the highest priority.

Prior to the introduction of the all-new Civic, Dongfeng Honda completed expansion of its automobile plant in Wuhan to quadruple annual production capacity to 120,000 units. The all-new Civic to be manufactured by Dongfeng Honda will be modified to meet the needs of Chinese customers, as well as the driving environment and regulations in China.

About Dongfeng Honda Automobile Co., Ltd.

Established:                July 16, 2003
Capital Investment:         US $200 million
Capitalization Ratio:       40% Honda Motor Co., Ltd.
                            10% Honda Motor (China) Investment Co., Ltd.
                            50% Dongfeng Motor Group Co., Ltd.
Location:                   Wuhan, Hubei Province, Economic and
                            Technological Development Area
Representative:             ZHOU Wenjie, Chairman   Mitsuru OZAKI, President
Employment:                 Approximately 2,000 associates
Business:                   Production and sales of passenger cars
Start of Production:        April 2004
Products:                   CR-V, Civic
Annual Capacity:            120,000 units
Production Processes:       Stamping, plastic injection molding, welding,
                            painting, assembling, R&D
Size: Lot size :            690,000m2 (building size: 219,000m2)
Sales Operation:            Exclusive Dongfeng Honda 4S dealers
                            (Approximately 90 locations as of March 2006,
                            approximately 140 locations by the end of 2006

About Honda Motor Co., Ltd.

Honda Motor Co., Ltd. (TSE: 7267)(NYSE: HMC)(LSE: HNDA.L) is one of the leading manufacturers of automobiles and power products and the largest manufacture of motorcycles in the world. Honda has always sought to provide genuine satisfaction to people worldwide. The result is more than 120 manufacturing facilities in 30 countries worldwide, producing a wide range of products, including motorcycles, ATVs, generators, marine engines, lawn and garden equipment and automobiles that bring the company into contact with over 19 million customers annually. For more information, please visit http://world.honda.com.

Source: Honda Motor Co., Ltd.

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Honda Motor Co., Ltd.
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