Parts Distribution Centers to Open in China and Latin America -Yamaha Motor Completes Six-region Global Parts Supply System-

Shizuoka, August 28, 2007 - Yamaha Motor Co., Ltd. (the "Company") announced that Yamaha Motor Commercial Trading (Shanghai) Co., Ltd. (YMCT), a wholly owned subsidiary, has established a parts distribution center in China to supply spare parts and accessories mainly within China. The center is scheduled to start operations on September 3. The Company is also launching a new spare parts and accessories distribution center for the Latin American and Caribbean markets in Miami, Florida.
The establishment of these two parts distribution centers completes Yamaha Motor's six-region global parts supply system (Japan, Europe, North America, Asia, China, and Latin America), with its core base, the Global Parts Center in Fukuroi, Shizuoka, in operation since May 2006. With this system, the Company is able to shorten parts supply lead times and reduce consolidated inventory worldwide.
The Chinese parts distribution center will operate in a rented warehouse of approximately 6,000 m² in Taopu, about 30 km from YMCT. It will manage spare parts inventory for Yamaha Motor products manufactured in China as well as in Japan, and ship the parts to dealers in China. The center will also supply spare parts for Chinese-made Yamaha Motor products to dealers around the world.
The new distribution center integrates spare parts supply operations previously conducted by seven separate manufacturing companies in China, including Chongqing Jianshe Yamaha Motor Co., Ltd. and Zhuzhou Jianshe Yamaha Motor Co., Ltd. Streamlining operations this way ensures smoother delivery of spare parts to Yamaha Motor users around the world.

The new company established to supply spare parts to the Latin American and Caribbean markets is named Yamaha Motor Distribution Latin America Inc. Capitalized at US$2 million (approx. ¥230 million), it was established in April 2007 as a wholly owned subsidiary of the Company. Yamaha Motor Distribution Latin America supplies spare parts and accessories for Yamaha Motor products to Latin American and Caribbean dealers, and, for products manufactured in the region, to dealers worldwide. It is also aggressively marketing parts and accessories, aiming to attain ¥5 billion in sales in fiscal 2008, the first year of operations.
With the completion of the six-region global parts supply system, the Company has developed optimal inventory allocation, an effective logistic information network, and a timely global supply chain management that puts product inventory, delivery schedules and other key information in the hands of Yamaha Motor users when they need it. Thus, the new supply system means higher quality service for Yamaha Motor product users.

Overview of YMCT* Parts Center

Overview of Yamaha Motor Distribution Latin America Inc.