Honda Motor Co., Ltd. Reports
Consolidated Financial Results for the Fiscal First Quarter Ended
June 30, 2010

TOKYO, class="xn-chron">July 30 /PRNewswire-FirstCall/ -- Honda
Motor Co., Ltd. (NYSE: href='http://studio-5.financialcontent.com/prnews?Page=Quote&Ticker=HMC'
title='HMC'>HMC) today announced its consolidated financial
results for the fiscal first quarter ended class="xn-chron">June 30, 2010.

FirstQuarter Results

Honda's consolidated net income attributable to Honda Motor Co.,
Ltd. for the fiscal first quarter ended June
30, 2010 totaled JPY 272.4
billion (USD 3,080 million),
an increase of JPY 264.9 billion from
the same period in 2009. Basic net income attributable to Honda
Motor Co., Ltd. per common share for the quarter amounted to class="xn-money">JPY 150.27 (USD
1.70), an increase of JPY
146.10 from JPY 4.17 for the
corresponding period last year. One Honda American Depository Share
represents one common share.

Consolidated operating income for the quarter totaled class="xn-money">JPY 234.4 billion ( class="xn-money">USD 2,650 million), an increase of 831.7%,
due primarily to the positive impact of increased revenue and model
mix, reduction in vehicle costs as a result of increased production
and continuing cost reduction efforts, despite increased R&D
expenses and the unfavorable impact of currency effects.

Consolidated net sales and other operating revenue (herein
referred to as "revenue") for the quarter amounted to class="xn-money">JPY 2,361.4 billion ( class="xn-money">USD 26,689 million), an increase of 17.9%
from the same period in 2009, due primarily to increased revenue in
the automobile business, despite unfavorable currency translation
effects.

With respect to Honda's automobile business segment, unit sales
totaled 899 thousand units, an increase of 17.4% from the same
period last year. In Japan, unit
sales amounted to 145 thousand units, an increase of 13.3% from the
same period last year. Unit sales outside of class="xn-location">Japan increased 18.2% to 754 thousand
units from the corresponding period last year, due mainly to
increased unit sales in Asia and
North America, more than
offsetting decreased unit sales in class="xn-location">Europe. Revenue from sales to external
customers increased 19.0% to JPY 1,813.0
billion (USD 20,491 million)
from the same period in 2009, due mainly to increased unit sales
despite the unfavorable currency translation effects. Operating
income was JPY 148.9 billion ( class="xn-money">USD 1,683 million), an increase of class="xn-money">JPY 170.3 billion from the same period last
year, due primarily to the positive impact of increased sales
volume and model mix, reduction in vehicle costs as a result of
increased production and continuing cost reduction efforts, despite
increased SG&A expenses and R&D expenses and the
unfavorable impact of currency effects.

Revenue from customers in the financial services business
decreased 4.1% to JPY 149.4 billion
(USD 1,690 million) from the same
period in 2009, due mainly to unfavorable currency translation
effects. Operating income increased 16.6% to class="xn-money">JPY 54.6 billion ( class="xn-money">USD 618 million) from the same period in
2009, due primarily to the decreased allowance for losses on credit
and lease residual values, despite the unfavorable impact of
currency effects.

Motorcycle unit sales totaled 2,887 thousand units, an increase
of 28.2% from the same period last year. Unit sales in class="xn-location">Japan totaled 45 thousand units, which
is the same level compared to the same period last year. Outside of
Japan, total unit sales was 2,842
thousand units, an increase of 28.8% from the same period in 2009*,
due mainly to increased unit sales in class="xn-location">Asia, especially in class="xn-location">India, class="xn-location">Indonesia and class="xn-location">Thailand, and Other regions including
South America.  Revenue from
sales to external customers increased 24.9%, to class="xn-money">JPY 320.2 billion ( class="xn-money">USD 3,619 million) from the same period
last year, due mainly to increased unit sales and favorable
currency translation effects. Operating income increased 455.0% to
JPY 31.3 billion ( class="xn-money">USD 354 million) from the same period last
year, due primarily to the positive impact of increased sales
volume and model mix and reduction in vehicle costs as a result of
increased production.

*Of the net sales of Honda-brand motorcycle products that are
manufactured and sold by overseas affiliates accounted for under
the equity method, those with respect to which parts for
manufacturing were not supplied from Honda or its subsidiaries are
not included in net sales and other operating revenue, in
conformity with U.S. generally accepted accounting principles.
Accordingly, these unit sales are not included in the financial
results.  Sales of such products amounted to approximately
1,780 thousand units for the period.

**United States dollar amounts
have been translated from yen solely for the convenience of the
reader at the rate of JPY
88.48=U.S.$1, the mean of the
telegraphic transfer selling exchange rate and the telegraphic
transfer buying exchange rate prevailing on the class="xn-location">Tokyo foreign exchange market on class="xn-chron">June 30, 2010.

Forecasts for the Fiscal Year Ending class="xn-chron">March 31, 2011

In regard to the forecasts of the financial results for the
fiscal year ending March 31, 2011,
Honda projects consolidated results to be as shown below:

The forecasts are based on the assumption that the average
exchange rates for the Japanese yen to the U.S. dollar and the Euro
will be JPY 87 and class="xn-money">JPY 112, respectively, for the full year
ending March 31, 2011.

Dividend per Share of Common Stock

The Board of Directors of Honda Motor Co., Ltd., at its meeting
held on July 30, 2010, resolved to
make the quarterly dividend JPY 12
per share of common stock, the record date of which is class="xn-chron">June 30, 2010. The total expected annual
dividend per share of common stock for the fiscal year ending class="xn-chron">March 31, 2011, is class="xn-money">JPY 48 per share.

The Board of Directors, at its meeting held on class="xn-chron">July 30, 2010, resolved that the Company
will purchase its own shares pursuant to Article 156 of the Company
Law, which applies pursuant to Article 165, Paragraph 3, of that
law.

The Board of Directors, at its meeting held on class="xn-chron">July 30, 2010, resolved that the Company
will retire its treasury stock pursuant to Article 178 of the
Company Law.

This announcement contains "forward-looking statements" as
defined in Section 27A of the Securities Act of 1933, as amended,
and Section 21E of the Securities Exchange Act of 1934, as amended.
 Such statements are based on management's assumptions and
beliefs taking into account information currently available to it.
 Therefore, please be advised that Honda's actual results
could differ materially from those described in these
forward-looking statements as a result of numerous factors,
including general economic conditions in Honda's principal markets
and foreign exchange rates between the Japanese yen and the U.S.
dollar, the Euro and other major currencies, as well as other
factors detailed from time to time. The various factors for
increases and decreases in income have been classified in
accordance with a method that Honda considers reasonable.

For Additional information, please visit; target="_blank"
href="http://world.honda.com/investors/meeting/">http://world.honda.com/investors/meeting/
 where you can download presentation materials and financial
results information.

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