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Mazda Creates Auto Industry First with New Inventory Management System - New inventory control system will

result in less customer wait time HIROSHIMA, Japan--In an automotive industry first, Mazda Motor Corporation will launch its Mazda Materials Management Planning (M3P) advanced inventory control system throughout Japan in April 2005. As part of the ongoing evolution of its stock management system, M3P enables optimized inventory levels, improved supply efficiency and streamlined business practices for Mazda retail and service operations in Japan. And customers will reap the benefits: better service, faster response times. The rollout of M3P is the first in a series of gradual deployments around the world in Mazdas efforts to create the auto industrys leading inventory control management system. The point of sale (POS) management system is ubiquitous in the retail industry-convenience stores and supermarkets, for example--and permits outlets to record all product sales information. The aggregate data can then be used in an inventory control system. Mazda is the first company in the automotive sector to introduce the POS system for the purpose of inventory control. The M3P system will cover 240,000 parts that Mazda handles. POS inventory control will enable Mazdas M3P architecture to manage standing inventory at parts franchises, implement multilevel inventory control, and revamp demand forecasts.

Automated dealer inventory management POS management automates inventory control for more efficient use of existing dealer methods of customer handling and finance, achieving greater work efficiencies. Specifically, each dealers range of products and parts inventory will be periodically reviewed to promote needs-based control without any manual input. This enables 90 percent of regular maintenance at dealers--parts replacement or vehicle checkups are examples--to be performed within one hour. Trials have already been completed in Japan and full nationwide rollout starts in April 2005.

Optimized multilevel inventory management Parts inventory historically have been managed independently at each dealer, each parts distributor, and at Mazda Motor Corporation itself. M3Ps multilevel inventory management enables better demand forecasting and optimized inventory management at all three levels by tracing customer orders throughout the supply chain from the point of sale at the dealership through the entire Mazda operation.

Upgraded demand forecasting

Based on three-plus years of order performance data, M3P can handle demand fluctuation. It has improved accuracy for demand forecasting--up to one year in advance. This reduces surplus inventory and improves delivery time, and an aim of 98 percent or higher fill rate. For Mazda, use of this state-of-the-art system is being driven by the desire to achieve better customer satisfaction and greater confidence levels between customers and dealers. Mazda MX-5 3rd Generation Limited to Debut at New York International Auto Show NEW YORK--Mazda wants to add some bite to the Big Apple. The Hiroshima-based company will use the 2005 New York International Automobile Show to reveal the MX-5 3rd Generation Limited, a unique, launch edition of the all-new MX-5 roadster, the next generation of the best selling two-seat, open-top sports car of all time. The show opens to the public on March 25. The limited edition launch model commemorates the all-new MX-5s evolved lots-offun character and jinba ittai driving attributes, and marks its global sales kickoff, slated for the latter half of 2005. Jinba ittai (pronounced gin-buy ee-tai) is a Japanese expression that literally means rider and horse as one and conveys the harmony felt between car and driver in motion. The limited edition production run will be 3,500 units for global markets, and sales are being synchronized with the start of sales for the all-new MX-5 roadster. The interior and exterior design of the 3rd Generation Limited features glossy chromesilver parts as a salient design element, accentuating the feeling of high quality, and evoking the classic and the modern combined in a lightweight, open-top sports car. The inherent dexterity and light, responsive feel of the MX-5 is also expressed in the 17-inch aluminum alloy wheels with a newly-developed silver finish--a hue created to sparkle like that of a finely crafted Japanese sword. All MX-5 3rd Generation Limited models will come equipped with the 2.0-liter MZR engine and a six-speed manual transmission; each will carry a unique badge stating the sequential production number. Show model has Velocity Red Mica exterior--exclusive to the limited edition--matched with deep crimson leather seats. Additional colors will be available.

Mazda MX-5 3rd Generation Limited

At the annual New York auto show, Mazda will also feature additional versions of the allnew MX-5. Other key Mazda vehicles will be exhibited in its Zoom-Zoom showroom, including the all-new Mazda5 and an upgraded model of the award-winning Mazda6. The show runs from March 23 to April 3. Press days are March 23 and 24. Streaming video and more information about the new MX-5 are available at http://www.mazda.com/product/mx-5/ MAZDA PRODUCTION AND SALES RESULTS FOR FEBRUARY 2005

Production and Sales Results Breakdown of Primary Products[Monthly] Highlights

Production and Sales Results Mazda Motor Corporation reported today its domestic production, domestic sales, exports and overseas production figures for February 2005. . February 2005
Units
YoY Change (%)

Breakdown
Passenger Cars

Jan. - Feb. 2005


Units
YoY Change (%)

DOMESTIC Commercial Vehicles PRODUCTION Total DOMESTIC


Passenger Cars

63,750 2,864 66,614

+2.2 -44.1 -1.3

115,104 4,796 119,900

-6.4 -54.3 -10.2

Registrations Micro-minis Sub Total Commercial Vehicles

17,162 3,824 20,986 2,495 951 3,446 19,657 4,775 24,432 38,060 91 38,151 15,840 5,596 21,436

-9.3 +10.5 -6.2 -4.1 +16.0 +0.7 -8.7 +11.5 -5.3 -17.4 -82.5 -18.1 -5.0 +48.9 +4.9

32,386 8,042 40,428 4,838 1,699 6,537 37,224 9,741 46,965 76,805 210 77,015 30,640 11,446 42,086

-9.4 +18.3 -5.0 -7.2 +12.5 -2.8 -9.1 +17.2 -4.7 -13.8 -75.8 -14.4 -10.3 +6.9 -6.2

SALES

Registrations Micro-minis Sub Total Registration Total Micro-mini Total

Total
Passenger Cars

EXPORTS

Commercial Vehicles

Total
Passenger Cars

OVERSEAS PRODUCTION

Commercial Vehicles

Total

(Notes)

Overseas Production units are calculated based on the parts and component shipments for Mazda brand models to be assembled at overseas production facilities.

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Breakdown of Primary Products[Monthly]

(1) Domestic Production


Models Demio (Mazda2) Verisa Familia (323, Proteg)/Laser Lidea Atenza (Mazda6) Axela (Mazda3) Roadster (MX-5, MX-5 Miata) RX-8 Units 7,113 1,667 520 12,220 31,232 67 0 YoY(%) +1.7 Premacy - MPV -59.4 Tribute/Escape +23.5 Bongo Friendee +25.5 Bongo Series (E-Series) -97.5 Titan Series (T-Series) -100.0 Others Total Models Units 4,353 5,110 1,328 0 2,402 462 140 66,614 YoY(%) +86.6 -18.1 -34.7 -100.0 -40.3 -57.9 -30.0 -1.3

(2) Domestic Sales


Models Carol AZ-Wagon Spiano Demio Verisa Atenza Axela Roadster RX-8 Units 883 2,385 336 6,020 1,591 1,443 2,525 36 41 YoY(%) +195.3 Premacy +4.4 MPV -47.9 Tribute -26.2 Bongo Friendee - Scrum -29.3 Bongo Series +4.8 Titan Series -82.9 Others -96.9 Total Models Units 2,359 2,695 259 12 951 1,164 996 736 24,432 YoY(%) +193.0 -10.8 -22.7 -94.5 +16.0 -11.3 -2.4 -18.9 -5.3

(3) Exports
Models Demio (Mazda2) Familia (323, Proteg)/Laser Lidea Atenza (Mazda6) Axela (Mazda3) Roadster (MX-5, MX-5 Miata) RX-8 Units 825 1,700 8,457 24,534 2 14 YoY(%) +26.1 Premacy +107.3 MPV -0.2 Tribute/Escape +8.9 Bongo T/V (E-Series) -99.9 Others -99.7 Total Models Units 186 1,291 911 71 160 38,151 YoY(%) -88.4 -61.8 -30.6 -85.5 -36.3 -18.1

(Exports by region)

Regions North America Europe Oceania Middle East

Units 13,966 12,306 5,807 1,883

YoY(%) -25.1 Asia -21.8 Africa

Regions

Units 1,623 554 2,012

YoY(%) -15.3 +52.6 -17.8

+1.9 Central and South America +7.4

(4) Overseas Production


Models Familia (323, Proteg)/Laser Lidea Atenza (Mazda6) Axela (Mazda3) Premacy Units 4,800 9,100 980 660 YoY(%) +18.8 Tribute -22.6 Proceed (B-Series) - Titan Series (T-Series) -15.4 Total Models Units 300 4,596 1,000 21,436 YoY(%) +200.0 +22.3 +4.9

*Model names in parentheses are for the overseas market.

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Highlights (1) Domestic Production 1. Models that showed an increase over the same month last year: Premacy, up 86.6%, Bongo Truck, up 51.0%, Mazda3, up 25.5%, Mazda6, up 23.5% New model: Verisa (1,667 units) 2. Holiday operations: Three days (February 12, 19, 26) at Ujina Plant No.1 and No.2, four days (February 5, 12, 19, 26) at Hofu Plant No.1 and No.2 (2) Domestic Sales 1. Models that showed an increase over the same month last year: Carol, up 195.3%, Premacy, up 193.0%, Bongo Truck, up 119.1%, Axela, up 4.8%, AZ-Wagon, up 4.4% New model: Verisa (1,591 units) 2. Market share increased over the same month last year. -Micro-minis: 2.8%, up 0.3 points (increased for the eleventh consecutive month since April 2004) (3) Exports 1. Models that showed an increase over the same month last year: Mazda2, up 26.1%, Mazda3, up 8.9% 2. Destinations that showed an increase over the same month last year: Africa, up 52.6%, the Middle East, up 7.4%, Oceania, up 1.9%

3. Major countries that showed an increase over the same month last year (shipment based): Country Units Change (%) Major contributors Australia Russia Spain 5,154 1,715 1,523 +0.6 +297.9 +127.3 Mazda3, Mazda6 Mazda3, Mazda6 Mazda3, Mazda6

(4) Overseas Production 1. Overseas Production increased from a year earlier for the first time in two months since December 2004. 2. Models that showed an increase over the same month last year: Tribute, up 200.0%, B-Series, up 22.3%, 323, up 18.8%, T-Series (1,000 units) FAW Mazda Motor Sales Co. Ltd. (FMSC) Holds Opening Ceremony and Announces Management Team CHANGCHUN--FAW Mazda Motor Sales Co. Ltd (FMSC) held an opening ceremony in Changchun on March 28 and announced its management team. FMSC is the national sales company jointly established by Mazda Motor Corporation, First Auto Works (FAW) and FAW subsidiary FAW Car Co. Limited (FCC) that started operations on March 1. The opening ceremony took place in a hotel in Changchun with approximately 200 people in attendance from FAW, Mazda, and dealers. The Deputy Governor of Jinlin Province, Niu Hai Jun, and Deputy Mayor in Chungchun, Zhang An Shun, joined in the ceremony as guests and Kiyoshi Ozaki, Mazdas senior executive officer in charge of its China business and Satoshi Tachikake, executive officer, attended from Mazda. The management team of FMSC was announced in the ceremony. Noriaki Yamada, Deputy General Manager of Mazdas China Business Division, was appointed President, and Yu Hongjiang from FCC became Vice President. An De Wu, Vice President of FAW and Kiyoshi Ozaki, Mazdas senior managing executive officer, became Chairman and Vice Chairman, respectively. This joint venture is a landmark cooperative business undertaking between FAW group and Mazda, said An De Wu at the ceremony. Over the next few years, Mazdas products will lead trends in the Chinese automotive market and will be a leader, providing fun-to-drive experiences. We would like to establish a strong Mazda brand through FAWs ample resources and experience in conjunction with Mazdas cutting-edge marketing and sales know-how. I am confident that this joint venture will be a big success. Mazda continues to construct a system to achieve our mid-term goal of producing and selling 300,000 units in the Chinese market by 2010, said Mr. Kiyoshi Ozaki. This new joint venture is a significant step forward for Mazdas expansion in China and is one of

our major strategies to achieve our targets. The new President, Noriaki Yamada, is a Mazda veteran in sales, marketing, and parts business and I am confident that he will strongly lead the company. Noriaki Yamada stated, In setting up the new national sales company, Mazda will provide customer-first service in all activities to win high customer satisfaction and strive at attain a top-level of quality sales network. FMSC is the national sales company to distribute Mazda-branded products in the Chinese market. It started with 100 million yuan (1.4 billion Japanese yen) and FCC, Mazda, and FAW took stakes of 70 percent, 25 percent and 5 percent, respectively. There are currently 127 employees. Mazda has shown explosive growth in production and sales since it started full-scale operation in the Chinese market in May 2001. Mazdas China sales were 80,075 units in 2003 (up 248 percent from the previous year) and 97,132 units in 2004 (up 21 percent).