Upward Revision of Forecast Non-Consolidated Business Results for the First Half of Fiscal 2004 (April 1, 2004 to September 30, 2004)

October15, 2004

Yamaha Motor Co., Ltd. (the Company) has revised its forecast non-consolidated business results for the first half of fiscal 2004 ( April 1, 2004 to September 30, 2004 ). The original forecasts were released on April 28, 2004 .

Revised Forecasts of Non-Consolidated Business Results for the First Half of Fiscal 2004 Ending December 31, 2004
(April 1, 2004 to September 30, 2004)

Millions of yen

	Net sales	Recurring profit	Net income
Previous forecasts (A)	290,000	5,000	5,000
Revised forecasts (B)	324,000	7,300	6,500
Amount of change (B-A)	34,000	2,300	1,500
Ratio of change [(B-A)/A] (%)	+11.7%	+46.0%	+30.0%
(Reference) Results for the first half of fiscal 2004 ended March 31, 2004	263,605	7,266	1,445

Main Reasons for the Upward Revision

The upward revision of the forecasts is due mainly to higher sales and profits than the Company originally anticipated, reflecting sales expansions for motorcycles, ATV(All Terrain Vehicle) and industrial robots centering on surface mounters, among other positive factors.

Further information regarding the business forecasts for the full fiscal year ending December 31, 2004 will be provided with the announcement of the business results for the first half of fiscal 2004, scheduled to be announced on October 28.

Devaluation Loss on Securities

The Company decided to impair its capital subscription to its manufacturing subsidiary for motorcycles and outboard motors in Brazil , Yamaha Motor da Amazonia Limitada (YMDA), due to deteriorating business conditions and exchange environmnet at YMDA. Accordingly, the Company will post a 3,266 million yen devaluation loss on securities as a non-operating expense in its consolidated statement of income for the first half of fiscal 2004.

The revised forecasts for recurring profit and net income are computed premised on this impairment.

Applying this impairment accounting will have no impact on the Company's consolidated results.

Early Application of the Accounting Standard for the Impairment of Fixed Assets

The Company decided to implement an early application of the Accounting Standard for the Impairment of Fixed Assets, effective for the first half of fiscal 2004. Accordingly, the Company will recognize an impairment loss on idle assets including lands, and post an extraordinary loss of 2,072 million yen in its consolidated statement of income for the first half of fiscal 2004.

The revised forecast for net income is computed premised on this extraordinary loss.

Forecasts of Consolidated Business Results for the First Half of Fiscal 2004 Ending December 31, 2004 (April 1, 2004 to September 30, 2004)

Actual consolidated business results for the first half of fiscal 2004, ending December 31, 2004 , are still being compiled. The figures are scheduled to be announced on October 28, 2004 .

*The fiscal year ending December 31, 2004 will become an irregular nine-month accounting period, due to a change in the closing date from March 31 to December 31.
Forecasts for financial results stated herein are based on management's assumptions and beliefs in light of the information currently available, and involve risks and uncertainties. Please be advised that actual results may differ significantly from those appearing in the table, due to various factors.