Tokyo, Apr 25, 2008 - (JCN Newswire) - Honda Motor Co., Ltd. announced that in the fiscal year ended March 31, 2008, it achieved an all-time record for consolidated net sales and other operating revenue (herein referred to as "revenue") for the eighth consecutive fiscal year which amounted to JPY 12,002.8 billion (+8.3%) due to increased sales revenue in all business areas.

Consolidated operating income, which amounted to JPY 953.1 billion (+11.9%), also increased to achieve an all-time record for the first time in two years, due to increased profit from higher revenues, cost reduction efforts, and the positive effect of currency exchange rates, despite an increase in incentives in North America, the impact of increased raw material costs, and increases in selling, general and administrative (SG&A) expenses and research and development (R&D) expenses.

Honda also achieved all-time record results for income before income taxes which totaled JPY 895.8 billion (+13.0%), equity in income of affiliates which totaled JPY 118.9 billion (+15.0%), and net income which totaled JPY 600.0 billion (+1.3%).

Honda plans for a year-end cash dividend of JPY 22 per share. Combined with the fiscal first quarter dividend of JPY 20, the fiscal second quarter dividend of JPY 22 and the fiscal third quarter dividend of JPY 22, the total cash dividend to be paid for the entire fiscal year is expected to be JPY 86 per share, which is an increase of JPY 19 compared to the previous fiscal year.

I. Results for Fiscal Year Ended March 31, 2008

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                                                           (yen billions)
                       Year ended March 31,
                         2007         2008        Difference    % Change
--------------------------------------------------------------------------
Net sales and
 other operating
 revenue             11,087.1     12,002.8*          + 915.6     (+ 8.3%)

Operating income        851.8        953.1*          + 101.2     (+11.9%)
[Excluding gain from
 Daiko-Henjyo]          792.8        895.8*          + 102.9     (+13.0%)

Income before
 income taxes           103.4        118.9*           + 15.5     (+15.0%)

Equity in income
 of affiliates           99.6        103.4*             +3.8       +3.8%

Net income              592.3        600.0*            + 7.7     (+ 1.3%)

Basic net income
 /common share(Y)      324.62       330.54*           + 5.92
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(Honda's average rates: JPY 114 = USD 1, JPY 162 = Euro 1)
(*record high)

II. Details of consolidated unit sales: (The total includes fully finished products made by Honda and its subsidiaries as well as unit sales of fully finished products and parts produced locally by affiliates accounted for under the equity method.

- Motorcycles: 9.32 million units (-10.1%); Though sales increased in some regions such as South America, consolidated unit sales decreased due mainly to decreased sales in North America, Europe and Asia. (Unit sales of approximately 4.58 million units of Honda-brand motorcycle products are not included in the total listed above, in conformity with U.S. generally accepted accounting principles, because they are manufactured and sold by overseas affiliates accounted for under the equity method, but do not use any parts supplied by Honda and its consolidated subsidiaries.)

- Automobiles: 3.925 million units (+7.5%); the increase was due to increased sales in markets outside of Japan, especially in North America, Europe and Asia.

- Power Products: 6.057 million units (-5.7%); the decrease was due mainly to decreased sales in North America.

Consolidated revenue increased in all business areas and totaled JPY 12,002.8 billion (+8.3%), an all-time record for the eighth consecutive year.

Consolidated operating income increased for the first time in two years and totaled JPY 953.1 billion (+ 11.9%), setting an all-time record, due to increased profit from higher revenues, cost reduction efforts, and the positive currency effects, which offset an increase in incentives in North America, the impact of increasing raw material costs, and increases in SG&A expenses and R&D expenses.

Income before income taxes increased for the first time in two years and totaled JPY 895.8 billion (+13.0%), setting an all-time record.

Equity in income of affiliates totaled JPY 118.9 billion (+15.0%), achieving an eighth consecutive all-time record due mainly to the increased income of affiliates in Asia.

Consolidated net income increased for the first time in two years and totaled JPY 600.0 billion (+1.3%), setting an all-time record, despite an increase in corporate income tax.

III. Results for the fourth quarter (January ? March 2008)

Consolidated revenue for the fiscal fourth quarter totaled JPY 3,055.5 billion (-1.0%). Consolidated operating income for the period was JPY 168.8 billion (-32.5%), consolidated income before income taxes was JPY 146.8 billion (-38.6%), equity in income of affiliates was JPY 24.3 billion (+22.1%). Consolidated net income totaled JPY 25.4 billion (-85.6%) due partly to an increase in corporate income tax.

IV. Forecasts for the Fiscal Year Ending March 31, 2009

Honda is planning for unit sales totals of 10.62 million motorcycles (+13.9%), 4.14 million automobiles (+5.5%), and 6.155 million power products (+1.6%). (Unit sales of approximately 4.72 million units of Honda-brand motorcycle products are not included in this total, in conformity with U.S. generally accepted accounting principles, because they are manufactured and sold by overseas affiliates accounted for under the equity method, but do not use any parts supplied by Honda and its consolidated subsidiaries.)

Honda will conduct its business operations based on the goals described in the following chart with assumption of the average currency exchange rate of JPY 100 = U.S. dollar 1 and JPY 155 = Euro 1 for the entire year.

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                                                           (yen billions)
                      Year ended March 31,
                        2008         2009        Difference     % Change
--------------------------------------------------------------------------
Net sales and
 other operating
 revenue            12,002.8     12,140.0           +137.1       (+ 1.1%)

Operating income       953.1        650.0          - 303.1       (-31.8%)

Income before
 income taxes          895.8        675.0          - 220.8       (-24.7%)

Equity in income
 of affiliates         118.9        106.0           - 12.9       (-10.9%)

Net income             600.0        490.0           - 110.0      (-18.3%)
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For complete details, please visit http://world.honda.com/investors/

About Honda Motor Co., Ltd.

Honda Motor Co., Ltd. (TSE:7267/NYSE:HMC/LSE:HNDA.L) is one of the leading manufacturers of automobiles and power products and the largest manufacture of motorcycles in the world. Honda has always sought to provide genuine satisfaction to people worldwide. The result is more than 120 manufacturing facilities in 30 countries worldwide, producing a wide range of products, including motorcycles, ATVs, generators, marine engines, lawn and garden equipment and automobiles that bring the company into contact with over 19 million customers annually. For more information, please visit http://world.honda.com .

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