Water Purifier Business Transferred to Yamaha Livingtec

August 19, 2010

Yamaha Motor Co., Ltd. (the "Company") announces the conclusion of an agreement with Yamaha Livingtec Corporation for the transfer of the water purifier business, effective July 30, 2010.

1. Reason for the transfer

Yamaha Motor's water purifier business started in 1989 when IIC, Ltd., then a subsidiary of the Company, began marketing water purifiers incorporating a powerful water purification cartridge as a core technology. In 2000, the Company took charge of this business operation.

In the current market environment, characterized by continuously intensifying competition, the Company concluded that it makes more sense to transfer the water purifier business to a company that can maximize synergy with it, rather than to try expanding the business on its own. Accordingly, the Company will transfer the business to Yamaha Livingtec Corporation, its key partner.

2. Outline of the transfer

(1)	Details of the transfer
	On September 30, 2010, the Company will transfer to Yamaha Livingtec all operations relating to home water purifiers and home alkaline ionized water apparatus/micro-bubble generators for the Japanese market. These include development, production, sales and after-sales service for the purifiers and related apparatus, as well as operations involving the devices' cartridges and repair/replacement parts.

(2)	Operating results of the business to be transferred
	Sales: ￥749 million (fiscal year ended December 31, 2009)

3. Outline of the company to which the business will be transferred

(1)Company name:	Yamaha Livingtec Corporation
(2)Location:	1370, Nishiyama-cho, Nishi-ku, Hamamatsu City, Shizuoka Prefecture, Japan
(3)Headed by:	Yasuo Morisada, President and Representative Director
(4)Business:	Manufacture and marketing of household equipment and appliances, and total living solutions based on original design, planning capabilities and related know-how
(5)Capital:	￥500,000,000
(6)Date of establishment:	October 1, 1991 Business began: April 1, 1992

4. Outlook

The forecasts for annual consolidated financial results the Company announced on August 4, 2010 reflect the transfer of the business described herein.