Notice concerning Yamaha Motor's announcement on serious accidents involving the electric hybrid bicycle "PAS", in accordance with the consumer products safety law

Yamaha Motor Co., Ltd. profoundly apologizes for the concern and inconvenience caused by the voluntary recall of the "PAS Electric Hybrid Bicycle with Rear Hub Unit Drive System."
This report outlines the major accidents reported to the Ministry of Economy, Trade and Industry, from among the additional reports received from customers since the voluntary recall was announced on May 15, and describes the action taken by Yamaha Motor.

1. Establishment of PAS Recall Headquarters
On May 15, the day the report was submitted to the Ministry of Economy, Trade and Industry, Yamaha Motor established an internal "PAS Recall Headquarters," under the leadership of Takaaki Kimura, Senior Executive Officer, to facilitate the implementation of the recall. The Headquarters is made up of a "Call Center," which responds to customer inquiries, a "Recall Team," which recovers customers' vehicles and an "Investigation Team," which examines the actual vehicles.

The Call Center, with a maximum of 95 staff, has, as of May 25, responded to a total of 13,371 calls from customers. The Recall Team is approximately 100-strong and is made up of Yamaha staff as well as employees of our associated retail outlets. With the cooperation of retailers handling PAS electric hybrid bicycles nationwide, we are pursuing recall work (replacement of parts, etc.) at seven recall centers around Japan. The Investigation Team, which has a staff of approximately 30, is investigating the information received on serious product accidents to determine whether or not the accidents were due to defect(s) in the product.

2. Serious Product Accidents Involving the Product
After the voluntary recall was announced on May 15 (seven accidents), from May 16 through May 24, Yamaha Motor received, from customers around Japan, further reports of accidents, and, on May 25, the Company reported a total of 18 accidents, which constitute as serious product accidents under the Consumer Product Safety Law to the Ministry of Economy, Trade and Industry.

The Company came to recognize from an internal investigation that the possibilities are high for two of these accidents as being due to a defect in the product. Investigations are currently under way for the remaining 16 accidents.

3. On Two Product Accidents Deemed to have a High Possibility of being Caused by the Product, and Yamaha's Response
Accident 1
1) Date of accident: March 24, 2007
2) Location of accident: Oita Prefecture, Japan
3)Date on which Yamaha received information regarding the accident: May 16, 2007
4) Product/model name: PAS Smile U Casual, Model X152 (model subject to voluntary recall)
5) Extent of injury: The customer suffered a bruise on the right shoulder, and required over 30 days of outpatient hospital treatment, including fomentation and acupuncture (according to claims made by the customer)
6) Description of accident: "The bicycle abruptly started in motion as soon as the customer straddled the bicycle, causing the customer to fall and strike his/her right shoulder against a curbstone. The customer has been receiving hospital treatment since March 26, 2007" (according to claims made by the customer)
7) Company's response: Yamaha Motor apologized to the customer and, with the cooperation of the customer, reviewed the details of the accident, and reviewed the existence of defect(s) in the Company's product.

Verification of the reproduction of the defective phenomena in the bicycle involved, verification of the history of defect(s) recorded in the controller and analysis of the component involved, revealed defects (cracks in the soldering), and it was confirmed that there was a high possibility that the accident would have been caused by a defect in the product.
Yamaha Motor is currently advising the customer to have the defective component replaced, in line with the response measures set out according to the voluntary recall that is currently being implemented, and is responding with sincerity to the customer's injuries.

Accident 2
1) Date of accident: Late April, 2007
2) Location of accident: Kagawa Prefecture, Japan
3)Date on which Yamaha received information regarding the accident: May 16, 2007
4) Product/model name: PAS Smile, Model X101 (model subject to voluntary recall)
5) Extent of injury: Bruises to the head and arm; due to persistent headaches, the customer underwent a medical examination resulting in a diagnosis of subdural bleeding, and the customer is currently undergoing treatment at home (according to claims made by the customer)
6) Description of accident: "The bicycle abruptly started in motion while stationery at a traffic light stop, causing the customer to fall to the ground and sustain bruises to the head and arm" (according to claims made by the customer)
7) Company's response: Yamaha Motor apologized to the customer and, with the cooperation of the customer, reviewed the details of the accident, and reviewed the existence of defect(s) in the Company's product.
As a result of the Company's investigation on defect(s) in the product as conducted for Accident 1, the Company was unable to confirm the recurrence (reproducibility) of defect(s) in the actual operation of the bicycle. However, the Company confirmed a history of defects recorded in the controller, thus recognizing this case as "an accident that was very likely caused by defect(s) in the product."
Yamaha Motor is currently advising the customer to have the defective component replaced, in line with the response measures set out according to the voluntary recall that is currently being implemented, and is responding with sincerity to the customer's injuries.

4. Further Action(s)
Yamaha Motor is working with Bridgestone Cycle Co., Ltd. and Miyata Industry Co., Ltd., whose products mount the drive units, to take swift, remedial action with the cooperation of customers in order to confirm the details of the accident reports, information surrounding the accidents, and existence of defect(s) to the products.
Based on investigations that have taken place until now, the accidents deemed to have a high possibility of being caused by the product have involved models subject to voluntary recall, and, as well as advising on having the components replaced, in line with the response measures already in place, Yamaha Motor is responding with sincerity to the customers who have sustained injuries.
Furthermore, concerning the accidents currently under investigation, Yamaha Motor will continue these investigations, and, for new cases involving accidents, investigations will be opened as required, and when accidents are deemed to have a high possibility of being caused by the product, Yamaha Motor will take swift and appropriate action.
Electric hybrid bicycles have become highly popular owing to their convenience, but Yamaha Motor will continue to strive to enhance product quality and to educate users on their proper use, to ensure safety and peace of mind.