[Takashi Yamanouchi, Representative Director, President and CEO]

Good morning, Ladies and Gentlemen! Welcome to the Mazda Stand.

Today we have a very important message for you. So, for me it is worth coming all the way from Japan. I had the honor to address many of you at the New York Auto show in April. At that time, we talked about the negative impact of the global economic crisis on the auto industry. Since then, our industry has stabilized somewhat thanks to the underlying recovery in the global economy, and a number of vehicle incentive programs, sponsored by various governments.

However, there is still a great deal of uncertainty in our industry, so, I have continued to drive the entire Mazda team to enhance what makes Mazda stand apart from our rivals. We believe it is the way our cars look; the way they are built; the key customer insight that creates value and joy of ownership; and most importantly the way they drive.
Simply put, we call it Zoom-Zoom.

By remaining focused on those values, Mazda will not only survive this global economic crisis, we will emerge stronger. As proof, just recently we announced 2^nd quarter earnings - yes, earnings, not losses - ahead of expectations. Previously, we had forecast that we would be profitable again in the 4^th quarter of our fiscal year, ending in March 2010.

However, the success of the new Mazda3 - launched right here in Los Angeles last year - plus efficiencies found in all areas of our business, allowed us to achieve that goal two quarters ahead of plan. These same factors permitted us to revise our full fiscal-year sales revenue upward by 100 billion yen. Business conditions remain challenging, but I am confident we are taking the right steps to keep our company moving forward.

Last year we announced 30 percent improvement in global fuel economy by 2015. We are also making significant, tangible progress toward achieving this goal. Just two months ago at the Tokyo Motor Show, I introduced the new line of Sky Concept engines and transmissions that will be a key driver for achieving that goal. This technology will launch globally starting in 2011.

A Mazda3 equipped with the Sky Concept gas engine, will achieve the fuel economy of today's Mazda2. The mid sized Mazda6 equipped with the Sky Concept diesel engine will also provide the fuel economy of today's Mazda2. Pretty impressive achievement, especially when you consider this improvement is made without any electric motor assistance. We will have more to say about these engines over the next few months.

The efficiency of our new Sky-Drive transmission will be combined with improved aerodynamics, reduced rolling resistance and the use of more lightweight materials. Together, they will make our goals real and achievable.

Another contributor to achieving our business goals is the continuous introduction of new and customer focused vehicles in all global markets. This is evidenced by today's North American debut of the Mazda2. We have always invested heavily in our research-and-development divisions, and will continue to be an engineering-focused company moving forwards.

In just a moment, I will step aside and ask Jim O'Sullivan to come up here to introduce the new Mazda2, but in brief:

• The Mazda2 is the sort of car that only Mazda could build: stylish, insightful, spirited. In short, Zoom-Zoom.
• The Mazda2 is the right car for the right times, with weight-saving measures, fuel efficiency and packaging that customers are asking for, and
• The Mazda2 was voted 2008's World Car of the Year

Okay, no further delay. O'Sullivan-san.

[James J. O'Sullivan, President and CEO, Mazda Motor of America, Inc.]

Arigato-gozaimas, Yamanouchi-san, and thank you.
And thank you to all of you for joining us as well.

As you've just heard, Mazda2 stands for everything that Mazda represents. It is stylish, dynamic to drive and it will be a very strong value. We call it Zoom-Zoom, Concentrated. It's everything that the other cars in our lineup are, just in a smaller, more focused, package. But don't forget that we've been building small cars for a while now, actually 40 years in the US alone. It all started with the R100 in 1970, that you can see here on the screens. With that image in your mind, let me show you just how far things have come...

Ladies and gentlemen, the 2011 Mazda2.

As you can immediately see, we're bringing style to a segment that seems to be missing that key ingredient. I could stand here and tell you that we're going to focus our advertising to sell the Mazda2 to a Gen-Y customer, 18-24 years old, such-and-such income, that this car will change our showroom and bring a new customer in.

The good news, though, is that I don't have to tell you that. You already know that the Mazda buyer is the second-youngest in the industry. The Mazda3 is already a hit with the under-30 crowd. And I'm proud to add that the Automotive Leasing Guide, or ALG, today bestowed its Residual Value award on the Mazda3, recognizing the value and quality of the vehicle.

But how did we reach those young customers, when our advertising doesn't focus on them specifically, or target them the way other companies go out of their way to? Well, simple: Mazdas aren't about demographics - age, income, gender - they're about psychographics - how people think, feel and act, regardless of their age.

We're after a customer who's young at heart, someone who believes that driving should be fun, someone who wants to own a car that makes you glance over your shoulder as you walk away from it. That's who's going to buy the Mazda2.

Now, there's a lot about the new Mazda2 that I can't reveal to you at this point, but I can put it in perspective a bit for you:

• Mazda2 has an expressive and emotional design. The bold face and dynamic body expresses Mazda's sporty, spirited character. Attractive body lines highlight refinement and craftsmanship.
• Mazda2 was designed and engineered specifically to deliver everything you've come to expect from the company that brought you the MX-5 Miata and is the most road-raced brand in North America
• Mazda2 will be the most fuel-efficient car in our showroom, and the most fuel-efficient car we have ever sold in North America
• In the four years since the first Mazda2 was launched elsewhere in the world, in addition to winning 2008's World Car of the Year, this car has won approximately 50 global awards, including being named Car of the Year in over 20 countries
• And Mazda2 will go on sale in late summer 2010.

There will be much more that we'll tell you about the car over the next few months, as we get closer to the launch. So, come up here and take a look at the cars, and we'll be around to answer any questions you may have the day goes on.

Thank you for your time, and enjoy the rest of the show.