June 28, 2005

YAMAHA CORPORATION and NEXO S.A.
Reach Agreement to enter into a Strategic Alliance in the Professional Audio Business

YAMAHA CORPORATION (Headquarters: 10-1, Nakazawa-cho, Hamamatsu-shi, Shizuoka; President: Shuji Ito) and NEXO S.A. (Headquarters: Paris, France; President: Eric Vincenot), a leading manufacturer of professional speaker systems, have reached a basic agreement to enter into a strategic alliance with respect to professional audio product development and distribution. Both companies believe that the integration of advanced digital technology and premier speaker technology will greatly enhance the system solution in professional audio products.
As a part of the alliance, YAMAHA has acquired 10.22% of the common shares of NEXO.

Details of Alliance

YAMAHA has over 30 years of mixing console development and manufacturing experience, with more than a 15 year history of digital mixing consoles technology including industry- standard products, such as PM1D and PM5D. YAMAHA is as well as known for its range of digital signal processors, power amplifiers and speakers such as DME24N/64N and PC-1N power amplifiers.

NEXO is one of the market leaders in concert/touring and installation speakers with its an excellent reputation line-array speakers^*(1) such as GEO series as well as PS series speakers, which are best sellers around the world. NEXO is also well known for its premier speaker processing technologies.

The combination of Yamaha and Nexo products in respect to the increasing demand for integrated professional audio systems was key to both companies decision to combine technologies and products through joint-development projects.

1.Outline of Agreements

(a)	YAMAHA acquired 10.22% of NEXO's common stock. The share sales/purchase transaction was completed on 24 June 2005. As a result of this share purchase, YAMAHA will become the third largest shareholder of NEXO.
(b)	YAMAHA and NEXO agreed to combine and maximize YAMAHA's broad background in professional audio equipment including advanced digital audio technology and NEXO's superior speaker design and manufacturing technologies by jointly developing variety of future products.
(c)	YAMAHA will take over NEXO's US distribution. and Yamaha Corporation of America, a wholly owned sales subsidiary of YAMAHA through its Commercial Systems Audio Division, will be in charge of distributing NEXO speakers in the U.S.A..

2.Outline of the Alliance Partners

NEXO S.A.
Official company name:	NEXO S.A.
Location of headquarters:	Paris, France
Date of establishment:	1979
Representative:	Eric Vincenot (President)
Number of employees:	Parent company, 52; Consolidated, 110
Lines of business:	Manufacture and sales of professional speakers
Internet URL:	www.nexo-sa.com

YAMAHA Corporation
Official company name:	YAMAHA CORPORATION
Location of headquarters:	Hamamatsu, Shizuoka Prefecture
Date of establishment:	1887
Representative:	Shuji Ito (President and Representative Director)
Number of employees:	24,000
Lines of business:	Manufacture and sales of musical instruments, AV equipment, semiconductors, and other products
Internet URL:	www.global.yamaha.com
*(1) Line-array speaker A line-array speaker is a group of speaker units arranged vertically in a straight line. The sound from a line-array speaker does not disperse in a vertical direction and does not diminish substantially with distance, thus making these speakers effective for projecting sound over long distances.

For further information, please contact

YAMAHA CORPORATION

Public & Investor Relations Group,
Public Relations Division
Mr. Mike Tanaka

TEL. +81-3-5488-6601
FAX. +81-3-5488-5060


	Visit Yamaha's website at http://www.global.yamaha.com/index.html

June 28, 2005

YAMAHA CORPORATION and NEXO S.A. Reach Agreement to enter into a Strategic Alliance in the Professional Audio Business

YAMAHA CORPORATION and NEXO S.A.
Reach Agreement to enter into a Strategic Alliance in the Professional Audio Business