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Notice of Impairment Loss on Securities of a Consolidated Subsidiary

February 7, 2006

Yamaha Motor Co., Ltd. (the "Company") decided to post an impairment loss on the capital subscription for its motorcycle manufacturing subsidiary in India, Yamaha Motor India Pvt. Ltd. (YMI), based on the Company's assessment concerning the recoverability of YMI's financial condition. The reasoning behind this accounting is that the market value of the Company's shareholders' equity for YMI at the closing date of the Company's fiscal year ended December 31, 2005 fell by more than 30 percent from its capital subscription for YMI. Therefore, the Company posted 3,484 million yen in impairment loss on YMI securities as a non-operating expense on the "Non-Consolidated Statements of Income" for the fiscal year ended December 31, 2005.

For reference:

In evaluating loss on securities of its subsidiaries, the Company generally posts the entire amount of impairment loss on all securities whose market value at the fiscal year-end declines by more than 50 percent of the Company's acquisition cost. For the securities whose market value at the fiscal year-end decreases by about 30 to 50 percent from the acquisition cost, the Company posts the amount it considers necessary, based on the recoverability of the subsidiaries' financial condition.

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