In fiscal 2004, unit sales of power products rose 10.1%, to 5,047,000 units, due largely to increased sales of general-purpose engines, mainly in North America.

Net sales from power product and other businesses, including power products, grew 4.7%, to ¥341.6 billion, due primarily to increased unit sales. Operating income surged 28.3%, to ¥10.3 billion.

In Japan, unit sales of power products grew 1.1%, to 477,000 units. In North America, unit sales increased 26.2%, to 2,363,000 units, as the result of healthy demand for lawnmowers and general-purpose engines. Unit sales in Europe decreased 2.2%, to 1,261,000 units. Unit sales in Asia decreased 5.8%, to 619,000 units. In other regions, unit sales increased 11.6%, to 327,000 units.

During fiscal 2004, the Salad mini-tiller, introduced in fiscal 2003, continued to record favorable sales. Throughout the world, we also introduced the BF135 and BF150 series of four-stroke outboard engines, which achieve outstanding low emission levels and superb performance by using Honda's advanced technologies. Furthermore, in Japan and Europe we launched the new GX35, a 360-degree-inclinable, four-stroke general-purpose engine that has superb environmental performance and the UMK435 brush cutter, which features the GX35. In North America and Europe, we commenced sales of the GSV160A and GSV190A series of high performance 4-stroke engines. In India, we began production and sales of the low noise portable EXK2800 and EXK2800S generators, which meet the strictest noise regulations in the world.

In fiscal 2005, we will further capitalize on the cost-competitive benefits of making engines in Asia and utilizing the "Made by Global Honda" network to deliver those benefits to our customers around the world.

Demand for our power generators in Europe and North America remains steady, and we expect sales to increase in the coming fiscal year. In Asia and the Middle East, the effort to expand sales will focus on pumps made in Thailand.

In fiscal 2005, we expect unit sales of power products to grow 11.0%, to 5,600,000 units.