HERO HONDA CO-SPONSORS
THE HISTORIC INDIA- PAKISTAN CRICKET SERIES

New Delhi , February 10, 2004: "Sports has the power to unite", said Nelson Mandela. And that famous line once again stands the test of time, as we are on the threshold of a historic moment that brings together India and Pakistan , when Indian cricket team visits Pakistan next month after a gap of almost decade and half to play three test matches and five one-dayers.

Hero Honda, the World No. 1 Two-Wheeler company is proud to be a part of this historic occasion as a co-sponsor of the India-Pakistan cricket series.

What started out as a path breaking initiative by our Honourable Prime Minister Shri Atal Behari Vajpayee with the Samjhauta Express a couple of years ago, has snowballed into a tour, promising greater friendship between the two countries than ever before.

While talking of Hero Honda's association with the upcoming series, Mr. Brijmohan Lall, Chairman, Hero Honda Motors, said, "It has always been our endeavour to create an environment that fosters growth and peace. There is no better way to create that than by extending a hand of peace and friendship. We, the Hero Honda family, are proud to be a part of this moment, which transcends beyond cricket."

The company's bond with sports goes back more than a decade and Mr. Brijmohan Lall's bond with Pakistan goes back even further- to the days even before Pakistan was created. He was born in Lyallpur , Pakistan , and came to India after partition. And more than half a century later, he is today regarded as one of India 's leading entrepreneur and most admired industrialists. And this phenomenal success has been fuelled by the vision to build long lasting relationships with everyone.

Mr. Pawan Munjal, Managing Director and CEO of Hero Honda Motors, said, "Our mission statement is to create world-class products and services in the form of best two-wheelers in the world. While doing so, we also maintain the highest standards of ethics and societal responsibilities."

"We have now chosen to back the upcoming Indian Pakistan series as a vehicle to bring peace and prosperity to the sub-continent."

Mr. Munjal further said, "The passion that cricket generates in people on either side of the Wagah Border is unmatched anywhere in the world. Considering cricket is almost a religion for people in either country, interest level in this series for people across the world will be one of the highest ever in the history of sports. This will hopefully foster a feeling for goodwill amongst all."

Hero Honda's association with cricket began with the sponsorship of the India-Sri Lanka Test series in 1993. Today, Hero Honda is a serious patron of not just Indian but also world cricket. It is one the global partners of ICC cricket events till the World Cup for cricket 2007.

• Total Turnover for the year up by15 % to Rs 5997 crore
• Profit After Tax (PAT) for the year increases by25 %
• Total motorcycle sales for the year up by 23%; Q4 sales up by 50%
• World No.1 for the third year in a row
• 5 successful model launches drive 4 % growth in market share to 48%
• Announces 500% final dividend, Total dividend 1000% for the year.
• Market capitalization crosses Rs 10,000 crore mark

The year 2003-04 has been yet another year of landmark achievements for Hero Honda, especially the feat of selling over 2 million motorcycles in a single year, which has not been achieved in the two-wheeler industry so far. With this accomplishment, Hero Honda has been able to double its annual sales of motorcycles, in a short period, from 1 million in 2000-01 to over 2 million in 2003-04.

The company's Total Turnover (sales turnover plus other income, net of excise) grew to Rs. 5997 crore, a growth of 15% over Rs. 5195 crore recorded in 2002-03. This is the highest turnover ever recorded in the history of the Indian two-wheeler industry.

The company's Profit After Tax (PAT) soared to Rs. 728 crore, a growth of 25% over previous year's Rs. 581 crore. The Profit Before Tax went up to an impressive four-digit figure of Rs. 1072 crore, moving up from Rs. 885 crore, registering a remarkable increase of 21%.

Widely acknowledged as one of the most investor-friendly companies, the company announced a final dividend of 500%. Thus with the interim dividend of 500% paid earlier, the total dividend for the year is also a four digit figure of 1000%

The Operating Margin was an impressive 15.56%, versus 15.52 % in the previous fiscal. The improvement in operating margin reiterates the company's continued and dedicated efforts towards cost rationalization, higher indigenisation, better working capital management and improved manufacturing efficiencies.

The company's volume sale of 20,70,147 motorcycles during the year, marks a splendid jump of 23 % over previous year's sale of 16,77,535 motorcycles.

Buoyed by the tremendous response received by all its new models launched during the previous financial year, the company has ended the year with 48% market share in motorcycles - a remarkable increase of 4 per cent over preceding fiscal. The company's market share in the two-wheeler category has also increased to 37 % , an increase of 4 % .

The performance of the company in the fourth quarter of the FY 2003-04 was also par excellence. The motorcycle sales for the period January - March 2004 grew by a remarkable 50 per cent as compared with the corresponding period in the previous FY. The company sold 5,92,718 motorcycles in the quarter, significantly up from 3,96,193 units sold during January - March 2003.

The Total Turnover of the company for the same period also zoomed 38% from Rs. 1248 crore in the fiscal 2002-03 to Rs.1724 crores. While the Profit After Tax during the quarter registered a splendid jump of 42%, from Rs. 149 crores during January - March 2003 to Rs. 211 crores during the same period, the Profit Before Tax showed an impressive upward trend, growing 41% from Rs. 221 crores during the last quarter of 2002-03 to Rs. 311 crores during the same period in 2003-04.

Commending the company's excellent performance and the achievement of the 2 million plus sale milestone, Mr. Brijmohan Lall, Chairman, Hero Honda Motors Ltd., said, "This landmark achievement could not have been possible without the excellent support of our esteemed stake holders and customers and especially our very efficient and resourceful supply chain. The support of our partners Honda Motor Co., Ltd., Japan and Hero Cycles Ltd., have greatly helped in our success. It has always been our endeavor to offer enhanced value to our stakeholders by adhering to world standards."

Enthused by the world record performance Mr. Pawan Munjal, Managing Director, Hero Honda Motors Ltd., said, "The key reason for our success has been our continuous pursuit of pro-actively delivering value and delight to our customers. This achievement once again demonstrates our intrinsic capability to comprehend changing customer needs and fulfilling them with matching products. With the voluminous success of CD-Dawn, Splendor+ and Passion Plus, we have ended the year with an undisputed leadership in the entry and executive segments - the core of the Indian motorcycle industry. Ambition135 has strengthened our position in the premium segment."

Talking about the company's future plans, he added , "We are committed to continue our world class performance, by delivering even better value to the customers in the years ahead by offering products with the latest technology, styling and performance. Several new and exciting product launches are lined up for the future."

HERO HONDA AND TERI CONDUCT A WORKSHOP IN KOCHI
TO INTRODUCE GREEN OLYMPIAD 2004
Continue their endeavour to promote environmental-consciousness amongst school children

Kochi, June 29, 2004: Hero Honda Motors Ltd., the 'World No. 1' two-wheeler company, in association with TERI (The Energy and Resources Institute), today conducted a workshop in the city for introducing its annual national event - Green Olympiad and TERRAQUIZ. The workshop was held at Bhavan's Vidya Mandir, Elamakkara and was attended by over 100 school children and 70 to 80 school teachers from 28 schools across the city.

Dr. Babu Sebastian, Director, SIET (State Institute of Educational Technology), Govt. of Kerela was the Chief Guest at the workshop, which lasted the entire first half of the day. The session included an introduction on TERI and a brief on the event, apart from interactive sessions with children on environmental issues.

On the occasion, Mr. H.Madhusudan, Area Manager - Kochi , Hero Honda Motors Ltd., said, "Caring for the environment is one of the fundamentals of Hero Honda's business. At Hero Honda, the goal is not only to sell bikes, but also to help in every step that makes the world a better place to live in. The Green Olympiad and TERRAQUIZ is just a part of our efforts towards educating and sensitizing the young minds of the country about the need for a healthier and cleaner environment."

Hero Honda's environment related initiatives have been acknowledged by various concerned bodies. The company has been certified for its Environmental Management Systems as per ISO 14001. The Green Rating done by the Centre for Science & Environment, New Delhi , for all the automobile companies in India , ranked Hero Honda as No.1 for its environmental performance.

Hero Honda and TERI (The Energy and Resources Institute) in association with the Ministry of Environment and Forests conduct Green Olympiad, an annual written examination on environmental issues. The examination is conducted amongst school children across India and schools of Nepal , Russia and West Asia . The best performing 32 schools are then short listed to participate in TERRAQUIZ, an environment quiz, which is later telecast on Doordarshan in 13 episodes. The winning team is declared the HERO HONDA ENVIRONMENT AMBASSADORS for the year.

The Green Olympiad and TERRAQUIZ is structured with innovative concepts that are designed not only to test the knowledge of students but also to educate and sensitize them about the environment. The two-hour examination tests the children on a wide variety of subjects beginning from wildlife to renewable sources of energy, biotechnology, to health, climate change and other relevant issues. Meritorious students are awarded scholarships by the Ministry of Environment and Forests.

Since its inception in 1999, the examination has recorded increase in participation from all parts of the country and abroad. Green Olympiad 2003 witnessed an overwhelming response of over 35000 students from various schools in India and other countries.

About Hero Honda's other green initiatives:

Green Supply Chain: The Company is committed for Greening its Supply Chain so as to further ensure that the products supplied to the market are produced in an environmental friendly manner.

Environment Policy: Hero Honda is committed to demonstrate excellence in our environmental performance on a continual basis, as an intrinsic element of our corporate philosophy. The company's Environment Policy provides a framework for the Environmental Management Systems and commits itself to:

Promotion of Non-Conventional Energy: In order to promote non-conventional sources of energy the company has been subsidizing installation of bio-gas plants by 50 percent and15 such plants are currently operational.

Drinking Water: The Company has installed deep bore hand pumps in the villages around the factory to provide clean drinking water.

Construction of Drainage: Most of these villages do not have proper drainage causing water logging in the heart of these villages. The company has constructed proper drainage systems in these villages.

Jallandher, August 24, 2004: Hero Honda, the 'World No.1' two-wheeler company and the Global Partner for all ICC cricket tournaments till 2007, has taken forward its association with cricket with the sponsorship off the ICC Champions Trophy to be held shortly. The company had on display for members of the Hero Honda family, the ICC Champions Trophy at Hotel ________ in Jallandher. Many cricket enthusiasts came to have a glimpse of the trophy, which was looking sparkling and terrific in its form.

With this occasion Hero Honda continues to further its bond with cricket and sport in India . The ICC Champions Trophy to be played next month in England between September 10th and 25th is like a Mini World Cup where all the 12 test-playing nations would be participating.

Mr. Atul Sobti, Executive Director, Business Operations, Hero Honda Motors Ltd., said, "Cricket is the pulse of our nation. We are extremely enthusiastic about our association with cricket; a sport that cuts across all our customer segments and helps us connect more strongly with them. I am sure this tournament is going to be a thrilling contest amongst all the teams in World cricket. I take this opportunity to wish all the teams and the players the very best of luck and hope that this tournament sets new heights in performance, viewership and thrill."

The tournament would see a total of _____ one-dayers being played amongst the teams, which have been divided in four groups of three each.

Hero Honda's association with Cricket dates back to June 1993, when it sponsored the India - Sri Lanka Test Series, for the first time. The same year in November, Hero Honda presented the Hero Cup, which became popular as the mini "World Cup".

Hero Honda's patronage of cricket has become a part and parcel of the sport. The 1999 World Cup in England saw Hero Honda play a prominent role, which was even further enhanced with Hero Honda signing up as one of the official sponsors of ICC Cricket events till 2003. The company today has the first option to sponsor World Cup 2007.

Hero Honda has been associated with several other cricket events including the ICC Knock-Out 2000, ICC Trophy 2001, Hero Honda Test Series (India vs. England) 2001, Youth World Cup 2002, ICC Champions Trophy 2002, India England Women's Cricket Series 2002, World Cup 2003 and the India-Pakistan Series held recently in 2004.

In order to strengthen its association with the sport, the company signed up Sourav Ganguly, the Indian cricket captain, as its brand ambassador in the year 2000. In 2002, it added five budding Indian cricketers - Virender Sehwag, Mohammad Kaif, Yuvraj Singh, Harbhajan Singh and Zaheer Khan to its list of brand ambassadors. It was the most befitting of moments when Hero Honda's bat was inaugurated by Sourav Ganguly, during the Natwest Tri-Nation series - which India won in a sensational manner at Lords, in July 2002.

Continuing with its mandate of encouraging budding talent in the vast arena of sports in India and inspired by the Laureus World Sports Awards, Hero Honda began the Hero Indian Sports Awards. These awards provide the ideal platform for a perfect mélange of entertainment and sport to celebrate sporting achievements throughout India and across various disciplines of sport. Major sportspersons and sports legends representing multi-discipline sport gather under one roof.

In a historic chapter in the Indian sporting history, Hyderabad recently saw the 2nd Hero Indian Sports Academy (HISA) Awards for excellence in sports for the year 2003. The highlight of the evening was the announcement for various categories and the felicitation of sportsmen for their invaluable contribution towards sports in the presence of a galaxy of sport stars. Young sports personalities were awarded in the Best Achiever male & female category.

Welcoming Mr. Fukui and thanking Honda for their superb support, Mr. Brijmohan Lall, Chairman, Hero Honda Motors Ltd, said “Hero Honda is one of the most successful joint ventures within the Honda Group. It is today the world's largest two-wheeler company within all HONDA’s group companies. Honda will continue to provide Hero Honda with full and latest technological support and we look forward to an even more robust growth for our company. We have already worked out the new product strategy till 2008.”

In the previous fiscal, Hero Honda achieved a record sale of over two million motorcycles, which is the largest production by a local company within the Honda group worldwide. This enabled Hero Honda to retain the largest market share both in the Motorcycle as well as Two-wheeler categories. One of its motorcycle models, Splendor has already exceeded the cumulative production of 5 million, and is the largest selling single name in motorcycle category in the world.

Addressing the gathering, Mr. Takeo Fukui, said, “I believe that the One Crore cumulative production was achieved because Hero Honda’s two-wheelers have been well appreciated by the customers in India, and I would like to express my sincere appreciation for all the efforts made by our partner, their associates, dealers and business partners.”