HIROSHIMA, Japan-Mazda Motor Corporation has announced it received approval at the end of 2005 to establish a local distribution company in Moscow. The new national sales company (NSC) will commence business operations in April 2006. Mazda expanded the scope of what had been its representative office in Moscow by injecting 100 percent of the capital into the new distribution company. Mazda's new NSC has the goal of further strengthening sales in the rapidly expanding automotive business in Russia

The new company is called "Mazda Motor Rus, OOO." ("OOO" is the Russian equivalent of limited liability company defined under its legal code.) Mazda's representative office in Russia was set up in December 2004, and its head, Joerg Schreiber, has been appointed managing director of the new national sales company. Mazda Motor Rus will play a unifying role in several areas of the Mazda business in Russia, such as importation and distribution of Mazda-brand vehicles, parts and accessories; improving technical skills and service instruction for employees; and marketing efforts. These measures are Mazda's response to the rapid growth of the automotive business in Russia. With 20 employees as of December 2005, preparations for the start of business operations are proceeding smoothly to meet the projected start of operations in April 2006.

"Mazda is moving into high gear to raise our profile and develop our business infrastructure in Russia, " said Daniel T. Morris, who is responsible for Mazda's global Marketing, Sales and Customer Service Division as a senior managing executive officer. "Our new national sales company is another step forward, established to provide unified and consistent support from Mazda to our dealers and, most importantly, our customers. By locating in the capital city, which is also a hub of the auto industry in Russia, we can move swiftly and efficiently to achieve maximum results in this growing market."

Mazda began full business operations in Russia in 2003, with strong sales growth attributable to the favorable reception of the Mazda3 and Mazda6. In 2004, Mazda sold 8,465 vehicles in Russia, a 360 percent increase compared to the previous year's result. Sales mushroomed in 2005 to 21,120 units, up nearly 150 percent on 2004's results, which made Mazda the fastest growing brand in Russia for two consecutive years. Further growth is expected this year, with 28,000 unit sales projected in 2006, a rise of 30 percent compared to 2005.