EXHIBIT99(A)

KPMG LLP

Suite2000355 South Grand AvenueLos Angeles, CA90071-1568

Independent Accountants’Report

The Board of DirectorsAmericanHonda Finance Corporation

Members of theBoard:

We have examined management’s assertionabout American Honda Finance Corporation’s (the Company)compliance with the minimum servicing standards set forth in theMortgage Bankers Association of America Uniform Single AttestationProgram for Mortgage Bankers, as they relate to the servicing ofretail automobile loan contracts, as of and for the year endedMarch  31, 2006 included in the accompanying management’sassertion. The minimum servicing standards not considered by theCompany to be applicable to the servicing of retail automobile loansinclude procedures 2, 3, and 4 of Section I – Custodial BankAccounts, procedures 1, 2, 3, and 4 of Section III –Disbursements, and procedures 2, 3, and 4 of Section V – MortgageLoan Accounting. Management is responsible for the Company’scompliance with the applicable minimum servicing standards. Ourresponsibility is to express an opinion on management’sassertion about the Company’s compliance based on ourexamination.

Our examination was made in accordance withstandards established by the American Institute of Certified PublicAccountants and, accordingly, including examining, on a test basis,evidence about the Company’s compliance with the minimumservicing standards and performing such other procedures as weconsidered necessary in the circumstances. We believe that ourexamination provides a reasonable basis for our opinion. Ourexamination does not provide a legal determination on theCompany’s compliance with the minimum servicingstandards.

In our opinion, American Honda FinanceCorporation has complied, in all material respects, with theaforementioned minimum servicing standards as of and for the year endedMarch  31, 2006.

This report is intended solely forthe information and use of management and the board of directors, theTrustee, and the related beneficiaries and holders (as defined in theAgreement of Definitions Relating to the Trust and Servicing Agreementdated April  1,1998).

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| /s/KPMG LLP  |
| June  9,2006 |
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HONDA FINANCIALSERVICES

MANAGEMENT ASSERTION

As of and for theyear ended March  31, 2006, American Honda Finance Corporationhas complied in all material respects with the minimum servicingstandards set forth in the Mortgage Bankers Association ofAmerica’s Uniform Single Attestation Program for MortgageBankers.

The minimum servicing standards not consideredapplicable to the servicing of automobile loan contracts includeprocedures 2, 3 and 4 of section I – Custodial Bank Accounts,procedures 1, 2, 3 and 4 of section III – Disbursements, andprocedures 2, 3 and 4 of section V – Mortgage LoanAccounting.

As of and for the same period, American HondaFinance Corporation had in effect a fidelity bond in the amount of$20,000,000 and errors and omissions policy in the amount of$1,000,000.

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| /s/Y. Takahashi                     |
| Y.TakahashiPresident                |
| /s/Jon Nomura                       |
| Jon NomuraDirector ofSecuritization |
| June9, 2006                         |
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