Concerning the Strengthening of Our Corporate Structure Measures to Strengthen Intelligent Machinery (IM) Operations

In order to achieve "a higher level of global competitiveness," Yamaha Motor Co., Ltd. (YMC) has devoted itself to the realization of numerous structural improvements in our business and strengthening our corporate structure through re-organization, all aimed at creating a corporate structure that is good at dealing with change. As the result of comprehensive efforts to accelerate this process, it has been decided to strengthen our Intelligent Machinery (IM) operations. Here is a summary of the measures that will be enacted.

As a result of negotiations between YMC and Tenryu Technics Co., Ltd. (Location: Hamamatsu-shi, Shizuoka Pref.; Representative: Michiaki Kitabatake), wh ich is a manufacturer of surface mounters used for mounting electrical parts on printed circuit boards and the third largest domestic manufacturer of mid -size surface mounters, it has been agreed that Tenryu Technics will transfer part of its operations for the formation of a new company.

Presently, YMC's IM (Intelligent Machinery) Operations manufactures and sells mid-sized surface mounters and other types of industrial robots both domes tically and overseas and, due to the particularly rapid growth recently in our production and sales of the mid-sized surface mounters, consideration was being given to expanding these operations.

With the cooperation of Tenryu Technics, the new company will take portionsof Tenryu Technics' corporate resources, including facilities/equipment, emp loyees and sales network, and combine Tenryu Technics' generic technologies with YMC's technologies to undertake a full range of new business activities from development to marketing with the aim of creating greater competitiveness and a stronger corporate base in the surface mounter industry. Plans call for the new company to begin operations as of April 1, and notice of the new company's name, starting capital, president and other details will be given as they become available.

"We have agreed through negotiations with Yamaha Motor Company, the No. 1 domestic maker in the field of mid-size surface mounters, to cooperate in the formation of a new company that will combine our unique technologies with Yamaha's rich, cost-competitive technology base in areas such as robotics to develop competitive new products with high overall performance and reliability. The details of the agreement will be decided on the basis of subsequentn egotiations."

YMC's IM Operations engage primarily in the development, manufacture and sales of mid-size, multi-purpose surface mounters capable of accurately mountin g a wide variety of parts ranging from high-precision electronic parts to anomalous outline electronic parts. With the start of operations at the new co mpany, we will work to strengthen our product lineup and expand our business amid conditions such as the recovery of the Asian economies.