Being particularly suited to the needs of European customers, the new 626 5-door hatchback models have contributed to an increase in sales over the previous fiscal year.

Keeping in mind regional differences, the European economy for the most part achieved positive growth during fiscal 1999. The total industry demand in Europe was supported by healthy growth in major markets.

The successful introduction of several new models in fiscal 1999, including the 626 wagon, 626 with a direct-injection diesel engine, new 323 series, and new Demio and MX-5, boosted Mazda's retail sales in Europe 15.5% over the previous year, to 248,410 units. This represented the third consecutive, double-digit increase in fiscal year growth.

The new 323F combines the maneuverability of a compact car with the versatility of a station wagon.

In Austria, on a calendar year basis, Mazda regained the top sales position among Japanese auto manufacturers for the first time since 1995. This position has been maintained for the first half of this calendar year. During the same period, in Germany and Austria, the 323 and 626 were ranked as the first and second best-selling Japanese models, respectively. Also, Mazda recorded the top sales position among Japanese models in Germany, the largest market in Europe.

The all new Premacy, unveiled at the 69th Geneva Motor Show in March 1999, attracted a great deal of attention from European customers, followed by an unprecedented level of visitors and a significant number of orders at the Mazda Dealer Fairs throughout Germany in June 1999.

Demio, a practical yet sporty compact wagon introduced into the European market in 1998, contributed to significant sales growth in Europe during fiscal 1999.

Mazda's overall retail sales from January to June 1999 in Europe, already showed more than a 13% increase over the same period in the last year, led by robust sales of the MX-5, 626 Wagon, 323 and Demio.

Placing a leading priority on significant expansion of sales by streamlining of Mazda European operations, increased efficiency related to region-wide logistics and further advancement in CS improvement activities, Mazda aims to achieve 2% market share, or over 300,000 units, and top customer satisfaction in the year 2000. These objectives will be achieved by executing various measures integrated with our new brand strategy, strengthening sales channels in southern European markets targeting greater market share, and successfully introducing the new Premacy, MPV and B-Series pickup models.