Honda Motor Company, Ltd. announced today that it had reached agreement with BAR to extend its contract for the supply of F1 engines to the team until the end of 2007.

Honda returned to the Formula One World Championship in 2000 after signing a contract with the BAR team for the supply of engines and joint development of the chassis. In December 2001 the contract was extended for a further three years from 2002. The extended agreement included provisions for strengthening the joint chassis development programme, and Honda has also continued to further improve its development structure within Honda R&D.

As a result, the BAR Honda team currently lies third in the 2004 Constructors' Championship. British driver Jenson Button has achieved six podium finishes, and team-mate Takuma Sato scored the first podium finish by a Japanese driver for 14 years with his third place finish at the U.S. Grand Prix.

With this new agreement Honda and BAR renew their commitment to challenge for the Formula One World Championship into next season and beyond.

Takanobu Ito, Managing Director Honda Motor Co., Ltd: "Five years have passed since Honda began its third era of Formula One racing. This season we are realising concrete progress in this new challenge and are aiming to reach our initial goal of getting our first victory. In order to consistently win races in the future, we have made a new multi-year contract with B.A.R in which we will supply engines and conduct joint development of chassis technology. We will continue to make an utmost effort in this Formula One challenge and ask for your continued support as we strive to fulfill the expectations of Honda motorsports fans worldwide."