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                      | Yamaha Motor Co., Ltd. (YMC) has recently 
                          established a  "Year 2010 Environmental Action Plan 
                          - Eco-Cite YAMAHA"  as its new corporate mission 
                          concerning the environment with a clear set of policies 
                          and goals aimed at taking the company into the 21st 
                          century.
 The new "Year 2010 Environmental Action Plan 
                          - Eco-Cite YAMAHA"  is a further stepped-up 
                          set of corporate guidelines based on results of the 
                          company's previous "Environment Plan 2000" (established 
                          April 1996). It is structured around the following three 
                          principles:
 1) Promoting thorough environmental preservation measures 
                          concerning products,
 technologies and manufacturing processes
 2) Creation and execution of environmental management 
                          systems
 3) Promoting the reform of consciousness aimed at changing 
                          individual lifestyles.
 
 The specific contents of the plan are as follows.
 1. To strive both for further "energy conservation, 
                          " "long life" and "100% recycle-ability" in our products 
                          and the realization of closed-loop type manufacturing 
                          systems aimed at "energy conservation," "elimination 
                          of toxic materials" and "zero factory wastes," and in 
                          doing so, to strive to be an environment-friendly company 
                          that creates Excitement in all aspects of its corporate 
                          activities, from planning, design and manufacturing 
                          to distribution and even after the products reach the 
                          hands of our customers.
 2. In order to realize the goals of item one above, 
                          we will implement environmental management systems under 
                          a new organizational structure and actively follow up 
                          on the higher goals we set for each division's activities. 
                          At the same time we will strengthen our internal inspection 
                          functions and promote communication in a variety of 
                          directions both inside and outside the company in the 
                          form of things like reports on environmental issues.
 3. A major premise for these environmental preservation 
                          activities will be a "reform of con-sciousness" in the 
                          people who implement these activities, both as individuals 
                          and as mem-bers of the company. For this reason, we 
                          will promote individual lifestyle reform activities 
                          in the form of an  "Eco-Cite Challenge 50 Campaign" 
                           that incorporates stepped-up individual-level activities 
                          deriving from the know-how we have gained through our 
                          environmental activities until now and operating and 
                          gaining ISO14001 certification of our environmental 
                          management systems. What's more, in addition to undertaking 
                          environmental consciousness-raising activities aimed 
                          at our employees, their families and the local community, 
                          we will work to spread these types of activities to 
                          member companies in our corporate group both in Japan 
                          and abroad.
 
 In recent years, increasing importance is being placed 
                          on energy conservation and resource conservation measures 
                          aimed at reducing CO2 emissions. Among our company's 
                          products are a large number, including scooters and 
                          motorcycles, PAS electro-hybrid bicycles and Gas Heat 
                          Pump air-conditioning systems, which are the focus of 
                          attention as highly efficient personal vehicles or environment-friendly 
                          household products.
 With the implementation of the new "Year 2010 
                          Environmental Action Plan Eco-Cite YAMAHA" activities, 
                          Yamaha Motor has begun a process of not only pursuing 
                          even higher levels of environment friendliness in our 
                          products and technologies but also of efforts to reduce 
                          our overall CO2 emissions from an LCA* standpoint by 
                          more than 30% (Yamaha comparison to the company's 1990 
                          levels)
 . This means reducing the fuel consumption of our main 
                          products, including motorcycles, scooters and marine 
                          engines, etc., by more than 30%. Furthermore, we will 
                          continue to raise the level of our goals in line with 
                          the changes of the times and progress in technologies.
 At the same time, by having people around the world 
                          enjoy these products and technologies, we want to be 
                          a company that creates Excitement and contributes to 
                          the enrichment of people's lives. In this vision, the 
                          environment and people are always our central concerns. 
                          And it produces an equation where  Ecological  
                          concern and human exCitement come together in 
                          a concept we call Eco-Cite. This is Yamaha Motor's 
                          environmental policy to take us into the 21st century.
 From here on, we will be setting ambitious environmental 
                          projects for each division of the company that will 
                          be pursued to the utmost of our abilities. Reports will 
                          be made on the progress of these respective projects.
 
 * LCA stands for Life Cycle Assessment and refers to 
                          assessing the total environmental impact of a product 
                          from the manufacturing stage until the final scrapping 
                          after the product life span.
 * All values and figures in this report are based on 
                          Yamaha calculation standards.
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                      | Outline of 
                          "Year 2010 Environmental Action Plan - Eco-Cite 
                          YAMAHA" |   
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                            |  | 1 - a. Thorough pursuit 
                                of environmental friendliness in Yamaha products, 
                                technologies |  |   
                      | (Motorcycle operations)- Over 30% reduction in fuel consumption (Yamaha comparison 
                          to the company's 1990 levels) and constant efforts to 
                          be the top runner in each category in terms of fuel 
                          consumption and emissions
 - Development of next-generation 2-stroke engines and 
                          environment-friendly high-output 4-stroke engines
 - Research and product development in the areas such 
                          as electronic-control fuel injection systems, electric 
                          vehicle, hybrid technologies, fuel cells and natural 
                          gas use
 (Marine operations)
 - Pursuit of measures to extend product life such as 
                          optimum hull design from an LCA perspective, full-fledged 
                          implementation of refresh operations and development 
                          of boat manufacturing technologies aimed at a 100-year 
                          product life
 - Pursuit of diesel engine and 4-stroke engine development 
                          with the aim of achieving over 30% improvement in fuel 
                          consumption (Yamaha comparison to the company's 1990 
                          levels) in each category
 - Development of technologies for recycling of hull 
                          materials
 (PAS operations)
 - Worldwide expansion of the market for PAS bicycles 
                          as vehicles that reduce energy consumption and expand 
                          mobility, and expansion into other product fields
 - Pursuit of greater efficiency in assist motor and 
                          battery performance and greater univer-
 sality in product specifications
 
 Similar projects will also be pursued by Yamaha Motor's 
                          other department.
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                            |  | b. Thorough pursuit of 
                                environmental friendliness in manufacturing processes |  |   
                      | - Aim for a more than 30% reduction 
                          in company CO2 emissions (Yamaha comparison to the company's 
                          1990 levels) in terms of a company-wide value derived 
                          by translating energy consumption into CO2- Recording and management of substances that have a 
                          negative impact on the environment and strengthen development 
                          efforts for alternative technologies and material technologies 
                          with the aim of eventually eliminating all use of these 
                          substances
 - Reduction of manufacturing wastes through the improvement 
                          of recycling ratio, return to reusable resources and 
                          development more easily treated materials, with eventual 
                          goal of zero waste output
 - Establishment and implementation of "closed loop" 
                          type factory model
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                            |  | 2. Achievement and elevation 
                                of goals through environmental management systems |  |   
                      | - Product environmental management, 
                          manufacturing environmental management, recycling environmental 
                          management- Implementation of internal inspection systems and 
                          internal environmental ranking, production of environmental 
                          reports (environmental assessments), etc.
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                            |  | 3. Lifestyle Reform = promoting 
                                reform of individual and corporate consciousness |  |   
                      | < Action by the individual >  
                          Eco-Cite Challenge 50 Campaign- Recommend lifestyle reform by which the individual 
                          aims to reduce his impact on the environment by 50%
 - Improvement of lifestyle consciousness based on ISO14001 
                          applied on an individual level
 
 < Action as a company member >
 In-company environmental activities: Idea contests, 
                          world environment conferences, President's Awards, bio-tope 
                          activities, information supply/consciousness-raising 
                          activities through the in-house newsletter, employee 
                          education, adoption of a proposal system, etc.
 External environmental activities:  Cooperation 
                          and participation in tree-planting program, clean campaigns, 
                          environmental preservation activities, organization 
                          of environmental exhibitions, etc.
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