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Notice of Exercising the Call Option for Convertible Bonds

July 25, 2003

Regarding the 4th unsecured convertible bonds with 120% call option (the Bonds) which Yamaha Motor issued on March 4, 2002, the requirements for a 120% call option of the Bonds, provided in the agreement with companies commissioned on behalf of the bondholders, were met on July 25, 2003. By virtue of this qualification, the Company has the right to exercise early redemption, at 100 percent of the 100 yen par value of each bond.

If the Company elects to exercise the right based on the aforementioned requirements, it will publish and disseminate notice of the procedure for redemption to bondholders within 15 days of the time the right accrues to the Company, and during a period more than 30 days and less than 60 days prior to the date upon which the Bonds are redeemed. Currently, the Company has not decided whether or not to exercise the right.

As the right accrues to the Company when the closing price of the Company's shares on the Tokyo Stock Exchange for each of the last 20 consecutive trading days is at least 120% of the conversion price in effect on each such trading day, the Company may continue to reserve the right on and after July 28, 2003.

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