Committed Credit Facilities

On July 25, Mazda Motor Corporation established Committed Credit Facilities of 1,000 oku yen with 27 of its key banks. The facilities were arranged by Sumitomo Mitsui Banking Corp. Sumitomo Trust and IBJ served as co-arrangers.

Mazda Credit Facilities

At the present time, Mazda has no plans to use these new facilities. The purpose of these facilities is to provide Mazda with greater funding flexibility, incremental funding capacity, and an improved liquidity position in the future. If Mazda chooses to use these new facilities, they most likely would be used to refinance existing debt from other sources.

Mazda President Mark Fields commented: "These new Committed Credit Facilities are another step in our ongoing initiatives to strengthen the financial structure of Mazda. As a result of the Facilities, Mazda will have a stronger balance sheet and be in a more stable financial condition by having access to a large amount of readily available funds at agreed upon terms and conditions.

We have reduced Mazda's group net debt by over 50% since FY1995 at comparable consolidation accounting standards. We intend to reduce it further in the current fiscal year in line with the forecast we issued last May."