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                      | Yamaha Motor Co., Ltd.'s European production 
                          and marketing subsidiary MBK Industrie (Saint Quentin, 
                          France, President: Teruyuki Ando) started production 
                          of the F4, a 4-horsepower, 4-stroke outboard motor, 
                          on June 6, 2000. Production of the F4, which had been 
                          manufactured domestically by Sanshin Industries Co., 
                          Ltd. (Hamamatsu-shi, Shizuoka Prefecture, President: 
                          Susumu Doi), was transferred to MBK Industrie and production 
                          has begun.  |   
                      | 
 
 
                           
                            |  |   
                            | Yamaha 4-stroke 
                                outboard motor F4  |  
 
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                      | Overall demand in the European outboard 
                          motor market has steadied at the 200,000-unit level 
                          with the firming of the economy, and the bulk of demand 
                          is in the under 25-horsepower range used as auxiliary 
                          units for leisure craft and yachts. Remarkable increases 
                          in the sales of 4-strokes are being seen in this area 
                          known for its awareness of environmental protection. 
                          At Yamaha, we always seek to encourage production in 
                          the areas of greatest demand, and this transfer of production 
                          to Europe is one step in the process. 
 Along with the production of two-wheeled vehicles such 
                          as bicycles, mopeds and scooters, MBK began manufacturing 
                          2-stroke, 6- and 8-horsepower outboard motors in 1996, 
                          totaling some 13,000 units every year. The move of the 
                          4-stroke F4 production, in order to adapt to the increasing 
                          popularity of 4-stroke motors in the principal market 
                          Europe, will see 15,000 units produced this year and 
                          total production at the 28,000-unit level. This marks 
                          the first time the 4-stroke outboard motor has been 
                          produced at other than the Sanshin Industries factory. 
                          Yamaha Kumamoto Products Co., Ltd. (Yatsushiro-shi, 
                          Kumamoto Prefecture, President: Shinya Sato) is also 
                          planning to start production of small- and medium-sized, 
                          2-stroke outboard motors this autumn, giving Yamaha 
                          a system of three factories for the manufacture of outboard 
                          motors, Sanshin Industries, Yamaha Kumamoto Products 
                          and MBK Industrie.
 
 Worldwide outboard motor demand is steady at around 
                          800,000 units a year, and slight increases from developed 
                          countries are projected for the future. With current 
                          annual Yamaha production of outboard motors at around 
                          250,000 units, expansion of the 4-stroke motor line-up 
                          and 2-stroke motors installed with our own HPDI Direct 
                          Injection System that amply address environmental issues 
                          will bring about expanded business centering on the 
                          U.S. market. By continuing to develop products that 
                          correspond to market needs and even greater production 
                          efficiency, Yamaha aims to raise the level of customer 
                          satisfaction to new heights in the future.
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                      | Profile of 
                          MBK |   
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                            | Name | : | M.B.K. 
                                Industrie |   
                            | Location | : | Saint 
                                Quentin, France |   
                            | President | : | Teruyuki 
                                Ando |   
                            | Established | : | January 
                                1, 1994 |   
                            | Capital | : | 265,000,000 
                                FFR (approximately 4.2 billion yen) *1 |   
                            | Investment 
                                ratio | : | 
                                 
                                  | YMENV *2  |  56.9% |   
                                  | Yamaha Motor Co., Ltd. |  43.1% |  |   
                            | Total 
                                area | : | 370,000 
                                square meters (approx.) |   
                            | Factory 
                                area | : | 131,400 
                                square meters (approx.) |   
                            | Employees | : | 1,400 
                                (approx.) |   
                            | Principal 
                                activities | : | Manufacture 
                                and sales of bicycles, two-wheeled vehicles and 
                                outboard motors  |   
                            | Production 
                                scale | : | 
                                 
                                  | Production 
                                      figures for 1998  | Bicycles | 3,600 
                                      units |   
                                  |   | Two-wheeled 
                                      vehicles | 183,000 
                                      units |   
                                  |   | Outboard motors | 13,000 
                                      units |   
                                  |   | Sales volume | 30 
                                      billion yen *1 |   (all figures approximate)
 *1 1FFR = 16 yen
 *2 YEMNV = Yamaha Motor Europe N.V., Yamaha Motor's 
                                European Headquarters, engaged in the import and 
                                sale of Yamaha products, in addition to European 
                                marketing, product development and financing
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