Update # 7: Earthquake Impact on Honda Operations

TORRANCE, CA--March 24, 2011: Japan Operations: Honda had previously announced the suspension of production through Sunday, March 27. Today, Honda decided to extend the suspension of the production of finished units of automobiles at Sayama Plant at Saitama Factory (Sayama, Saitama) and Suzuka Factory (Suzuka, Mie) through Sunday, April 3, 2011. Concerning operations from April 4 on, Honda will make decisions based on the status of the recovery of Japanese society as a whole as well as the supply of parts. While most of our Japan-based suppliers are making progress to restart production, and many either have or are ready to resume parts production, there are a few suppliers that have yet to resolve the challenge to resume their production. In those cases, Honda is working with its suppliers to help reestablish their operations, while evaluating other possible sources for those parts in the supply chain. Please understand that Honda is making every effort to work toward a full recovery as quickly as possible. We appreciate everyone's understanding during these challenging times. Honda will resume motorcycle and power product production at Kumamoto Factory (Ozu-machi, Kikuchi-gun, Kumamoto) on Monday, March 28. Recovery of Operations in the Tochigi Area

The impact of the earthquake was more severe at the Tochigi Factory (Moka, Tochigi), however, repair and inspection activities were completed for almost all facilities and equipment. At other operations, including the Automobile R&D Center (Tochigi) of Honda R&D Co., Ltd. and Honda Engineering Co., Ltd., associates who will work on the restoration started returning to work. However, based on the expectation that it will take several months until the complete recovery of these facilities, Honda will to temporally transfer some functions such as automobile product development, development of manufacturing technologies and procurement to Honda operations in other locations such as Sayama, Suzuka, and Wako. Honda is cooperating with electricity conservation efforts and rolling blackout measures, prioritizing the relief and recovery of affected areas. Our decision to resume production could be affected by the needs of Japanese society as a whole. Honda has made contact with all Tier 1 suppliers in Japan and is collecting information from them regarding the status of their operations. Aid

With the hope to contribute to the earliest possible relief and recovery of affected areas, Honda will provide the following aid:

From Honda in Japan, 300 million yen (approximately $3.7 million) toward the relief and recovery effort. A total of 1,000 generators (gasoline-powered and home-use gas canister-powered), along with 5,000 gas canisters. Honda also will dispatch its staff to explain the use of this equipment. The Honda family of companies in North America will establish special matching gift programs for their associates for donations to the Red Cross to aid the victims of the earthquake and tsunami in Japan. Donations from associates will be matched on a dollar-for-dollar basis, with no personal or corporate donation limit. Honda employs more than 29, 000 associates in North America. American Honda has established a special website to channel donations to the American Red Cross* from customers, suppliers and others interested in supporting the Japan disaster recovery effort through the Red Cross. Originally established to accept donations from Honda and Acura automobile dealers, and Honda motorcycle and power equipment dealers, Honda has opened the site to the public who may wish to donate at: American Red Cross Honda

Honda has confirmed the well-being of all Honda associates on assignment in Japan from North America.

On March 17, certain U.S. news reports inaccurately suggested that Japan-based production of vehicles intended for sale in the United States would be suspended until May. This is not what we communicated. Honda has announced a suspension of Japanese production only through April 3, 2011.