Announcement of increase of the semi-annual interim cash dividend and revision of the planned 2003 yearend cash dividend which was originally announced on February 18,2003

Mabuchi Motor Co., Ltd.(the Company) hereby announces that the Board of Directors of the Company, held on August 19, 2003, resolved the increase of the semi-annual cash interim dividend and revision of the planned yearend cash dividend for fiscal 2003 which was originally announced on February 18,2003, as follows:

The reasons of the increase of the interim cash dividend and revision of the planned yearend dividend for fiscal 2003

Current Dividend Policy

The current dividend policy of the Company has been applied since 1999. The content and the consideration of the policy are as follows:

1. Regardless of slump in business, the company has been paying, continuously and stably, dividends of 50 yen per share as a regular dividend, in consideration of the paidin capital by shareholders.
2. In addition to the regular dividends payment above, the Company has been paying the special dividend as the distribution of the operating results and which has been calculated by dividing the 5% of the consolidated net income by the total number of outstanding shares.

The policy to pay the regular dividend at the fixed amount shows that the Company will continuously pay the stable dividend regardless of slump in business, and also represents the great confidence and stiff resolution of the management that to avoid such dullness they will improve and innovate the operation of the Company and keep the fixed-amount dividend payment.

The background of the increase of the semi-annual interim cash dividend and revision of the planned yearend cash dividend for fiscal 2003

The management of the Company, under "Innovation 2005" strategy, has great confidence to strengthen the position of the Company in the industry that will lead to the increase of the corporate value and the management also acknowledges that the continuous contribution to the international society and co-sharing of the results with the Company's stakeholders are the most important managerial commitment. And also the management considers the support and more involvement of shareholders to the Company is essential to accomplish the commitment. Thus, the Company, after reviewing the profit distribution policy to shareholders and the current status and the prospect of the retained earnings and the cash-flows of the Company, decided to change the special dividend base from 5% to 20% of the consolidated net income. In other words, the Company will, in addition to the regular dividend of 50 yen per share, pay the special dividend which is calculated by dividing the 20% of the consolidated net income of a fiscal year by the total number of outstanding shares. This dividend payment policy is to be applied from the payment of the semi-annual interim cash dividend of the current fiscal year. The amount of the semi-annual interim cash dividend is determined as a half of the provisional annual cash dividend of the fiscal year which will be announced at the report of the operating results for the first-half of the fiscal year of the Company. Due to above changes, the Company has increased the semi-annual interim cash dividend and revised the planned yearend cash dividend for fiscal 2003 which was originally announced on February 18, 2003 as follows:

Content of the Revison