Global News

March 06 2006

Suzuki's equity relationship and alliance partnership with General Motors

Suzuki Motor Corporation announced today that, with a mutual agreement to continue the implementation and expansion of business relationship with General Motors Corporation, GM’s equity stake in Suzuki would be changed.

Suzuki and GM have maintained a constructive 25-year business relationship since August, 1981, and we agree to continue promoting and implementing projects in the future, including development collaboration of advanced technologies, joint operation of CAMI - our JV in Canada - and manufacturing of a new medium-size SUV at this JV plant, development collaboration of powertrains, cross supply of OEM vehicles and joint global purchasing activities.

With this agreement in place, GM recently approached Suzuki to discuss the possibility of selling part of GM-owned Suzuki shares in order to strengthen its balance sheet. After giving careful considerations, Suzuki has decided to address this matter as follows.

1.GM’s equity stake in Suzuki changed from the current 20% to 3%

GM plans to retain 16,300,000 Suzuki shares equal to 3% equity participation to Suzuki’s total number of issued common stock, remaining as a stable shareholder of Suzuki, and to sell the 92,360,000 shares of 17% in the market.

Suzuki plans to utilize the TSE-sanctioned TosTNET-2 (pre-announcement based, treasury stock purchasing system) to purchase the equivalent number of shares to be sold by GM as its treasury stock through the open market.

2.Background on Suzuki’s decision to purchase the shares as treasury stock

Suzuki will attempt to purchase the shares to be sold by GM as its treasury stock through the ToSTNET-2 system that will enable us to purchase as many shares as possible while ensuring transparency and fairness and address potential market disruptions as a result of a large block of shares being released to the market.

The purchasing price will be the closing price today of JPY 2,490/share and total amount is estimated to be JPY 229,976,400,000. The required fund will come out of our own internal reserve.

3.GM’s repurchase of the shares

Suzuki and GM agreed that they would discuss, should GM express its desire to repurchase such number of shares at some future date.

4.Potential impact on Suzuki’s business plan and financial forecast

Suzuki and GM have a clear agreement to continue the scope of the current alliance relationship. There will be no impact on Suzuki’s current business plan and financial forecast. With regards to the 5-year plan, there will be no change in the policy, and Suzuki will aim to achieve the stated objectives at the earliest time.