By introducing these technologies Honda implements following improvements:

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1 Honda's Philosophy For many years, Honda has been a leader in awareness for the environment and always has taken its responsibility as global car manufacturer very seriously. Honda is always trying to reduce negative effects on the environment as much as possible. In consequence Honda promotes activities for improving the recycling capacity of its vehicles, aiming at a more effective use and re-use of resources. Design for Recycling We have developed technologies for: 1. Easier vehicle disassembly. 2. Improved material codes. 3. Easier re-use. 4. Easier recycling. By introducing these technologies Honda implements following improvements: Use of plastic tanks, thus eliminating the use of lead in this area. Easy to recycle plastic dashboard. PVC is eliminated in many parts (door panels, roof moulding, etc...) Germany - English 1/7 17/11/2004

2 The number of parts was reduced in order to facilitate the vehicle disassembly. Plastic parts above 5 gram are marked for easier sorting. Lead in the harnesses was replaced by copper The number of improvement measures is subject to the model, but Honda is prepared for the challenge to boost its efforts in this direction. Environment-friendly Recycling The current situation of vehicle dismantling and recovery is not homogenous across Europe. This reflects in different measures taken by Honda. This means we are striving towards an economic feasible solution without compromising recycling and recovery achievements. At the dismantling companies, in Germany, following operations are carried out: All service liquids, the starter battery and all parts, which could impair, an environment-friendly recycling are removed. (e.g. airbag.). Commercially exploitable parts and materials are removed and collected to be reused and recycled. The remaining body parts will be submitted to an approved shredder plant where the metals are prepared for subsequent utilisation in the steel industry. Germany - English 2/6 17/11/2004

3 A Practical Tool for Dismantling The most important conditions for the free-of-charge taking back and recycling are: The vehicle was registered in Germany for one month before the final shutdown. All essential assemblies or components are still available. No waste was added, which does not belong to the vehicle. The vehicle was returned with the original vehicle title. Germany - English 3/6 17/11/2004

4 The collection network Where can End-of-Life Vehicles be returned? For Honda vehicles there is a nationwide covering network of recycling companies, which acts as re-acceptance points. These recycling companies are approved by independent surveyors according to the legislation for Endof-Life vehicles. Search for acceptance points For further information please contact: Honda Telephone 069/ Telefax 069/ How much does vehicle recycling cost? According to the rules of free-market economy, the cost for the disposal of End-of-Life vehicles should be covered by the profit from the sales of parts and materials. Vehicles of the Honda brand, which have been registered after 01/07/2002, will be taken back free of charge providing they comply with previously mentioned requirements. (See Environment-friendly Recycling) As from 2007, also End-of-Life vehicles which were registered before 01/07/2002 will be taken back free of charge under certain conditions. What is a Certificate of Destruction? This is a certificate which confirms that the last owner brought his vehicle to an acceptance point which took care of the environment-friendly treatment and disposal. The certificate of destruction is required for "the final put out of service" of the vehicle and has to be presented at the registration office. Germany - English 4/6 17/11/2004

5 Who can issue a certificate of destruction? The certificate of destruction is always issued by an approved dismantler. Also a dealer, as authorised acceptance point, on behalf of the dismantler, is entitled to issue the certificate of destruction. The certificate confirms that the vehicle is recycled and disposed of according to legislation and state-of-the-art technology Optimizing recycling Collecting and re-using spare parts Honda is involved in the remanufacturing business which entails collecting useful spare parts rebuilding them and selling them as guaranteed rebuilt parts. In Europe, Honda has begun the rebuilt parts program with two electrical parts, the starter and alternator; but strives to gradually increase the parts variety (e.g. drive shafts, radiators, steering boxes etc.) to reach the level of Japan and the US within the next years to come. Recycling of parts In the UK and Germany Honda has built a network of collecting points for vehicle bumpers. The bumpers are crushed, cleaned and pressed to pellets. These pellets are used for new vehicle parts, e.g. panels for the new Civic and CR-V models. For these two models we need used bumpers respectively 60 tons of pellets per year. This European programme shall be enhanced to other vehicle parts. (E.g. bulkheads, wheel housing panels, battery cases, etc.) Honda, as a global car manufacturer, has introduced similar programmes in production facilities in the USA and Japan. Further to the plastic recycling, Honda has created an upgrade recycling programme for aluminium. In this case, engine blocks made of aluminium are recycled into frame parts. Germany - English 5/6 17/11/2004

6 Recovery of materials In order to support the processing, Honda reduced the use of certain plastics in order to minimize the risk of generating hazardous substances, during the thermal recycling process. Disposal Obligations Based on the average vehicle weight of all returned End-of-Life vehicles per year, the following recycling quotas must be achieved: By January, 1st 2006 the latest Re-use and Recycling shall be increased to a minimum of 85% by weight. Re-use and Material Recycling shall be increased to a minimum of 80% by weight. By January, 1st 2015 the latest Re-use and Recycling shall be increased to a minimum of 95%by weight. Re-use and Material Recycling shall be increased to a minimum of 85% by weight. This means, that as from 2015 only 5% by weight of the vehicle is allowed as residual waste. Achievements Improved Results Up to now, no detailed quotas are available, since no monitoring system has been set up by the responsible authorities. Beyond the legal obligations, Honda strives to reduce the environmental impact, during the whole life cycle, of their products. Germany - English 6/6 17/11/2004