In the email this morning:

(I blanked out the contact info.)

FOR IMMEDIATE RELEASE

CONTACT:
Steve Fleming
Communications Director
Mercury Marine
Cell: XXXXXXXXX

Phone: XXXXXXXXX
Fax: XXXXXXXXX
Email: XXXXXXXXX


Federal Court orders Yamaha to comply with Mercury contract

FOND DU LAC, Wis. (October 18, 2004)  A Federal Court has ordered
Yamaha Motor Corp. to comply with the terms of its existing supply
agreement with Mercury Marine regarding the delivery and pricing of power
heads for 75, 90 and 115 horse-power four-stroke outboard engines

Pursuant to a 1998 contract between the two companies, Yamaha supplies
power heads for Mercury's 75, 90 and 115 hp four-stroke outboard motors. In
that agreement, Yamaha agreed to provide Mercury the aforementioned
power heads and replacement parts until March 31, 2006. The agreement
contains very specific pricing terms and clearly limits raising prices on those

power heads.

In January 2004, Mercury petitioned the U.S. government to investigate
whether Japanese outboard engine manufacturers had engaged in unfair
pricing practices by "dumping" outboard engines in the United States.
Yamaha was one of the Japanese outboard engine manufacturers
investigated by the U.S. government. As a result of the investigation, the
government determined that Japanese outboard engine manufacturers,
including Yamaha, had indeed been dumping in the United States, and
preliminarily ordered a 22.52-percent import bond for each outboard engine
and powerhead imported into the United States from Japan.

Yamaha attempted to increase prices 91.6 percent on 75, 90 and 115 hp four-
stroke power heads supplied to Mercury beginning Nov. 1, 2004.

Mercury rejected the 91.6-percent price increase and notified Yamaha the
increase was, in fact, a clear breach of the supply agreement. Mercury also
filed suit in Federal Court in Wisconsin, alleging anticipatory breach of
contract. On September 27, 2004, Mercury moved for a judicial order that
would require Yamaha to continue to sell power heads to Mercury under the
terms of the existing agreement

The court issued an Order on Oct. 1, 2004, that directed Yamaha to continue
delivering powerheads in accordance with the agreement. After the close of
business on Friday, October 15, the federal district court issued what is
likely
to be its concluding order directing Yamaha to continue invoicing at the
prices set forth in the agreement. The judge stated, among other holdings:

"[Mercury Marine] is likely to prevail on its claim that Yamaha's refusal to
render continued performance&is a breach of the Agreement."

"Yamaha elected to unilaterally declare the Agreement terminated, something
it had no authority to do under the express language of the Agreement."

"[Mercury Marine] is likely to succeed on this issue [that Yamaha was
required to continue delivering powerheads on the contract's explicit terms
pending dispute resolution], no matter what the merits of the dispute they
agreed to submit to arbitration."

Additionally, we are informed that, in accordance with the terms of the
contract, Yamaha has petitioned the International Chamber of Commerce to
begin arbitration proceedings to determine their rights and those of Mercury
Marine.