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Yamaha Motor Implements Voluntary Retirement Program

February 5, 2010

At the Board of Director's Meeting held on February 5, 2010, Yamaha Motor Co., Ltd. (the "Company") has adopted a resolution implementing a voluntary retirement program, described below.

1. Main reasons for implementing the voluntary retirement program

In response to the challenging business conditions caused by a sudden decline in product demand in developed nations, the stronger yen, and increased fixed costs, the Company began taking emergency measures in fiscal 2009, reducing expenses and procurement costs, temporarily suspending factory operations in Japan, and curtailing capital expenditures. In addition, the Company has been working toward business recovery by promoting profitability reforms, such as improving the efficiency of its factory operations and relocating personnel in Japan, while registering an impairment loss on production facilities and equipment, in order to reduce the fixed costs of businesses in developed nations.

On the personnel front, in fiscal 2009 the Company stopped mid-career employment, restrained graduate recruitment, relocated personnel, transferred employees to companies outside the Yamaha Motor Group, initiated work sharing, promoted a career redirection program, and reduced salaries and bonuses, among other measures.

However, reflecting business conditions in developed nations -- where no short-term business recovery is anticipated -- the Company has determined that it must further reduce fixed costs. To curtail personnel expenses and increase management efficiency, the Company will initiate a program involving streamlining the workforce.

2. Outline of the voluntary retirement program and implementation


Number of employees targeted for voluntary retirement

Approximately 800


Period of the offer

Scheduled to start from August 2010


Retirement date

Scheduled from October 2010

* The Company will work out the details of implementing the voluntary retirement program in discussions with the labor union.

3. Prospects moving forward

Special incentives and other expenses for employees voluntarily taking early retirement -- amounting to 11,004 million yen -- are allocated as "business structure improvement expenses," classified as extraordinary losses in the non-consolidated financial statement of income for the fiscal year ended December 31, 2009. A revised financial forecast reflecting this additional allowance is also being announced today.

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