Kawasaki’s Brazilian Subsidiary Launches Motorcycle Sales

Tokyo, October 10, 2008 — Kawasaki Heavy Industries, Ltd. announced today that it will start the sales of motorcycles in Brazil from October 15 through its Brazilian subsidiary, Kawasaki Motores do Brasil Ltda.(KMB).

Focusing on the release of several supersport, sport and cruiser models of 250cc or greater, KMB expects to sell 5,000 motorcycles in 2009.

The Brazilian motorcycle market has been rapidly expanding since 2005 in which the number of motorcycles sold reached approximately 1 million. The sales volume further increased to approximately 1.6 million in 2007 (year-on-year increase of 26%). The sales of 250cc or greater class motorcycles in Brazil are particularly expected to demonstrate a significant increase with the local market displaying strong sales of approximately 150,000 units, the fourth largest worldwide after the United States, Europe and Japan. Kawasaki, with its strong brand power for middle and large size motorcycles, will implement an after-sales service with attention to detail as well as marketing and advertising projects while carrying out sales activities through KMB, a subsidiary wholly-owned by Kawasaki.

Investing approximately US$ 5 million, KMB will launch a motorcycle assembly plant with an annual production capacity of 25,000 units in Manaus, located in the north of Amazonas, in the mid 2009 to achieve the commencement of local production.

Overview of Kawasaki Motores do Brasil Ltda.

• Location: Manaus, Amazonas, Federative Republic of Brazil
• Representative: Hiroshi Ito
• Capital: 8.2 million Real (approximately 350 million yen* which has been fully invested by Kawasaki Heavy Industries, Ltd.)
• Business description: Importation, productions, sales and after-sales services of motorcycles, ATVs and Personal Watercraft (PWC).
• Production capacity: 25,000 units/year (from the mid 2009 onward)
• Number of employees: 15 (as of September, 2008)