Notice of Impairment Loss on Securities of a Subsidiary

Yamaha Motor Co., Ltd. (the "Company") hereby announces its decision to post an impairment loss on the capital subscription for its motorcycle sales subsidiary in India, Yamaha Motor India Sales Pvt. Ltd. (YMIS), based on the Company's assessment concerning the recoverability of YMIS's financial condition. The decision was attributable to the fact that the market value of YMIS's net assets at the closing date of the Company's fiscal 2007 (December 31, 2007) fell by more than 30 percent from its capital subscription for YMIS. Therefore, the Company posted a 5,413 million yen impairment loss on YMIS securities as a non-operating expense on the statements of income for the fiscal year ended December 31, 2007.

With this, the total impairment loss on securities of subsidiaries for fiscal 2007 amounted to 13,194 million yen.

For reference:
In evaluating losses 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 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 appropriate, based on the recoverability of the subsidiaries' financial condition.