Mazda Reports First Quarter Financial Results for Fiscal Year 2007; Full-year Forecast on Track.

Tokyo, Japan, July 31, 2007 - (JCN Newswire) - Mazda Motor Corporation today reported its financial results for the first quarter (April to June) of fiscal year(FY) 2007.

- Consolidated sales revenue increases by 11 percent year-on-year to 814.3 billion yen

- Consolidated operating profit up 9 percent year-on-year to 32.3 billion yen

- Investment for the future steadily increasing

Mazda's first quarter consolidated sales revenue increased by 11 percent year-on-year to 814.3 billion yen and consolidated operating profit increased by 9 percent to 32.3 billion yen. Favorable exchange rates contributed to the higher revenue. Consolidated operating profit rose from the effects of a weaker yen and successful cost cutting initiatives although these were partially offset by greater investment in R&D and higher depreciation costs. Consolidated ordinary profit fell 12 percent to 21.2 billion yen resulting primarily from forward exchange contract accounting effects caused by the depreciating yen. Consolidated net income was down 62 percent to 2.5 billion yen. Although ordinary profit and net income were down year-on-year, both figures are within planning assumptions and were budgeted at the beginning of the financial year.

Mazda's first quarter consolidated global retail volumes were down one percent to 323,000 units compared with the same period in FY2006.

On a geographic basis, retail sales volumes in North America* reached 108,000 units, a 6 percent increase year-on-year, due mainly to the sales growth in Canada and Mexico. Retail sales in Europe progressed at a similar rate to last year -- when Mazda surpassed 300,000 unit sales for the first time in the 15 years since 1991 -- to reach 78,000 units. Mazda retail sales in Japan were down 7 percent, to 57,000 units, as a result of the drop in demand for registered vehicles.

In China, local production of Mazda brand vehicles in Hainan Province ceased, resulting in a 44 percent decrease in sales of Mazda brand vehicles to 16,000 units. However, excluding the volume of Hainan-produced vehicles, Mazda3 sales pushed the retail volume up in China by 26 percent compared to the prior fiscal year. In other markets, the retail volume grew 15 percent to 64,000 units, with strong contributions from healthy sales of the CX-7, BT-50 and Mazda3.

Financial Projections for FY2007

Mazda's financial forecasts for the full fiscal year remain unchanged. As announced on April 27, 2007, Mazda is forecasting a global retail volume of 1.35 million units in FY2007, a 4 percent increase over FY2006. Consolidated sales revenue is projected to increase by 2 percent to 3,320.0 billion yen. The outlook for consolidated operating profit is for an increase to 160.0 billion yen, up by one percent, and consolidated net income is forecast to increase by 15 percent to reach 85.0 billion yen.

Mazda Representative Director, Senior Managing Executive Officer and CFO, David E. Friedman, said, "Going forward, we are aiming for steady growth. During the first quarter under the Mazda Advancement Plan, sales in North America and Europe continued to be brisk. Following the successful launch of the all-new Mazda2 in Japan, we will be rolling out this exciting new car in Europe and other regions within this fiscal year. Our increased investment for the future and inventory streamlining initiatives are also progressing according to plan."

FY2007 Projections Key Data

                                                          (billions yen)
------------------------------------------------------------------------
                     1st Half      2nd Half     Full year  Y-O-Y Change
                  Projections   Projections   Projections     (percent)
------------------------------------------------------------------------
Global retail
   volume (units)     670,000       680,000     1,350,000       up  4 %
Revenue               1,580.0       1,740.0       3,320.0       up  2 %
Operating profit         60.0         100.0         160.0       up  1 %
Ordinary profit          50.0          90.0         140.0       up 10 %
Net income               25.0          60.0          85.0       up 15 %
------------------------------------------------------------------------

* Mazda's figures for North America include Mexico and Puerto Rico 

Please go to "Investor Relations" at the Mazda Official Website

http://www.mazda.com/investors/ for additional financial information.

Disclaimer

The projections for FY2007 and future outlook shown in this press release are based on various uncertainties including conditions of the world economy in the future, automotive industry trends and the risk of exchange rate fluctuations. Note that neither Mazda nor any third party providing information shall be responsible for any damage an individual may suffer due to investment in Mazda based on the information contained in this press release.

About Mazda Motor Corporation

Mazda Motor Corporation (TSE: 7261) started manufacturing tools in 1929 and soon branched out into production of trucks for commercial use. In the early 1960s, Mazda launched its first passenger car models and began developing rotary engines. Still headquartered in Hiroshima in western Japan, Mazda today ranks as one of Japan's leading automakers, and exports cars to the United States and Europe for over 30 years. Overseas sales account for more than half of total turnover. Mazda has two main production sites in Japan and 19 overseas facilities. Overseas sites include joint ventures based in the United States, and in Thailand with Ford Motor Company, Mazda's largest shareholder.

Source: Mazda Motor Corporation

Contact:

Mazda Motor Corporation
Corporate Comnmunications Department
Tel: [phone]

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