Summary of Financial Results for the First Half of Fiscal 2005 Record High Interim Results Achieved, Full-year Forecast Revised Upward

Yamaha Motor broke all interim records for net sales, operating income, recurring profit and net income

Yamaha Motor’s consolidated results for the first half-year ended June 30, 2005 were 677.0 billion yen in net sales, 56.7 billion yen in operating income, 55.9 billion yen in recurring profit and 36.8 billion yen in net income, as the Company registered record highs for both sales and profits.

Effective from the fiscal year ended December 31, 2004, the Company changed its fiscal year-end from March 31 to the December 31. Until the previous fiscal year, the periods covered in the annual interim business report were April through September for the Company and certain of its consolidated subsidiaries - mainly in Japan and North America - and January through June for other consolidated subsidiaries, principally in Asia and Europe. Effective this interim term, Yamaha Motor unified the first half-year period for the Company and all group companies to a January through June term.

Sales and profits increased compared with the figures for the previous interim business report, announced in the “Outline of Consolidated Business Results for the First Half Year Ended September 30, 2004” (hereafter the previous Flash Report), in which business results for the six-month period for April 1, 2004 through September 30, 2004 for Yamaha Motor Co., Ltd. and its consolidated subsidiaries - mainly in Japan and North America - were aggregated with those for the six-month period from January 1, 2004 through June 30, 2004 for other of its consolidated subsidiaries - principally in Asia and Europe). Net sales, operating income, recurring profit and net income for the first half year ended June 30, 2005 rose by 12.4 percent, 28.1 percent, 27.5 percent and 57.6 percent, respectively.

Also, comparing the results for the first half year ended June 30, 2005 with those for the six-month period from January 1, 2004 through June 30, 2004 (hereafter the “previous period”) for the Company and all its consolidated subsidiaries, net sales and operating income increased by 11.3 percent and 1.7 percent, respectively.

In comparison with the forecast made at the beginning of the year, net sales, operating income, recurring profit and net income rose by 9.2 percent, 23.4 percent, 21.6 percent and 53.4 percent, respectively, all demonstrating significant growth over the forecast.

On the foreign exchange rate front, the average purchasing value of the yen during the period against the U.S. dollar appreciated by three yen from the value announced in the previous Flash Report and by two yen from the previous period, and depreciated by three yen from the forecast, standing at 105 yen. Meanwhile, the average purchasing value of the yen against the euro depreciated by four yen from the value in the previous Flash Report, by six yen from the previous period, and by three yen from the forecast, standing at 136 yen.

Broken down by business segment, motorcycle sales amounted to 381.2 billion yen -up 16.8 percent from the previous Flash Report, up 13.0 percent from the previous period, and up 5.3 percent from the forecast. Sales of marine products totaled 133.2 billion yen - up 15.4 percent from the previous Flash Report, up 6.8 percent from the previous period, and up 14.3 percent from the forecast. Power product sales were 92.4 billion yen - down 5.3 percent from the previous Flash Report, up 5.5 percent from the previous period, and up 9.3 period from the forecast. Sales in the “other products” segment reached 70.1 billion yen - up 11.1 percent from the previous Flash Report, up 20.2 percent from the previous period, and up 23.0 percent from the forecast. Compared with the figures for the previous period, sales in all business segment rose. Thus, net sales registered a record high for the seventh consecutive year.

Meanwhile, in terms of profit, operating income from the motorcycle business totaled 23.7 billion yen - up 123.6 percent from the previous Flash Report, up 47.2 percent from the previous period, and up 8.7 percent from the forecast. Operating income from the marine product business amounted to 14.9 billion yen - up 40.6 percent from the previous Flash Report, up 3.5 percent from the previous period, and up 62.0 percent from the forecast.

Operating income from the power product business was 9.0 billion yen - down 32.8 percent from the previous Flash Report, down 40.8 percent from the previous period, and down 3.2 percent from the forecast. Operating income from the “other products” segment amounted to 9.2 billion yen - down 5.2 percent from the previous Flash Report, down 8.9 percent from the previous period, and up 61.4 percent from the forecast. Compared with the figures for the previous period, operating income in the motorcycle and marine product businesses rose, each reaching an all-time record in the interim period.

Effective from the period under review, the Company changed the accounting status of Yamaha Jianshe Motor Shanghai Marketing Co., Ltd. from an equity method applied company to a consolidated subsidiary. Due to this and other factors, the number of consolidated subsidiaries stood at 98, an increase of two from the previous fiscal year-end, while the number of companies accounted for by the equity method was 52, an increase of one from the previous fiscal year-end.

The targets set at the beginning of the fiscal year have been revised upward by 7.3 percent for sales, 12.2 percent for operating income and recurring profit, and 27.7 percent for net income

The Company has revised its forecast consolidated business results for the full fiscal year ending December 31, 2005 upward, to net sales of 1,320 billion yen (a 7.3 percent increase from the target at the beginning of the fiscal year), operating income and recurring profit of 101 billion yen (a 12.2 percent increase from the original target), and net income of 60 billion yen (a 27.7 percent increase from the original target).

The upward revisions are due to updated expectations of higher sales than the original targets in all business segments, as well as higher operating income than the original targets for marine products, power products and the “other products” segment.

The forecast is based on the assumption that the U.S. dollar will trade at 105 yen during the period (an appreciation of three yen from the target at the beginning of the fiscal year), and the euro at 135 yen (a depreciation of two yen from the original target).

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