Kawasaki to Partner with Loncin Motor on Motorcycle Business in China

Tokyo, June 1, 2012—Kawasaki Heavy Industries, Ltd. announced today that it has signed a letter of intent on a business partnership deal with Loncin Motor Co., Ltd. regarding the manufacture and sale of motorcycles in China.

Kawasaki and Loncin entered into this LOI with the aim of establishing joint venture companies for sales and manufacturing to bring Kawasaki motorcycles to the Chinese market.

Headquartered in the city of Chongqing, the capital of the Chinese motorcycle industry, Loncin is one of the leading motorcycle manufacturers in China in terms of production size.

The recent economic growth in China, the largest motorcycle market in the world, has resulted in a diversification of personal tastes and interests among its consumers. It is expected that this trend will lead to a growing number of Chinese customers who purchase motorcycles for recreational purposes—the segment mainly targeted by Kawasaki. In this market environment, Kawasaki will leverage Loncin's domestic sales network and cost competitiveness to reach a wide customer base in China with its high-quality, high-value-added motorcycles.

Kawasaki will strive to further enhance its brand and reach new levels of customer satisfaction by bringing outstanding products and services to its customers.

About Loncin Motor Co., Ltd.

Location: Chongqing, China

Year of Foundation: 1993

Representative: Gao Yong

Capital: 720 million yuan (Approx. 9 billion yen)

Operations: Manufacture and sale of motorcycles, three-wheeled vehicles and engines

Number of Employees: 6,700

*Exchange rate: 1 yuan = approx. 12.5 yen