DENSO to Establish a Worldwide Group Cash Management System

    SOUTHFIELD, Mich., March 30 DENSO International America's
parent company -- DENSO Corporation -- will introduce a cash management system
for the DENSO Group by March 2002.  This initiative will create a centralized
system covering 78 out of 152 DENSO companies in Japan, North America, Europe,
and Asia.
    DENSO will implement the cash management system in two phases.  First, it
will integrate the financial functions of each group company into the regional
headquarters in North America, Europe, and Asia.  In turn, it will further
bring these functions under one roof in the headquarters of DENSO Corporation.
    "DENSO primarily intends to increase the efficiency of raising and
managing the group's funds through a centrally managed cash pooling system,
which enables surplus funds held by group companies to be brought together for
distribution to other group companies that require the funds," said Board of
Directors member Masatoshi Ano.  "This has the advantage of reducing interest-
bearing liabilities, which cuts the interest expenses of the group as a
whole."
    Ano added, "The group companies can use funds that DENSO Corporation
raises at lower interest by capitalizing on its high credit rating and credit-
worthiness."
    "The global cash management system will make it possible to centralize
payments to entities outside of the group through the netting that offsets the
settlement among the group companies.  This will contribute to reduced bank
commissions and efficient financial transactions," he said.
    "Moreover, DENSO can optimize risk-hedging strategies by placing currency
exchange risk, interest-payment risk, credit risk, and other risks under
centralized management," Ano explained.  "Further, the centralization of
financial functions will help to eliminate overlapped duties of each group
company."
    Financial costs that all DENSO companies can reduce with the launch of the
centralized system will be about US$3 million per year including income from
fund management, reduced interest payable and elimination of some bank fees.
    The integration of financial functions in each regional headquarters is
already underway in North America, Asia and Japan, effective as of September
1998, April 2000, and February 2001 respectively.  In Europe, centralized
financial operations will take effect in spring 2002.
    Centralized cash management on a global scale will begin with the
integration of Japan, North America, and Asia in September 2001.  DENSO Europe
will join as soon as it has established its regional system.
    In the future, DENSO will integrate financial functions of those group
companies not included this time under the global cash management system.
    DENSO Corporation, located in Kariya, Aichi prefecture, is a leading
automotive supplier of advanced technology, systems and components.  With
81,000 employees in 27 countries and regions, DENSO's consolidated global
sales for the fiscal year ending March 31, 2000 totaled US$17.8 billion.
    In North America, DENSO employs more than 13,000 people at 21 companies,
joint ventures and affiliates.  Consolidated North American sales for 2000 are
estimated at $4.1 billion.  DENSO International America, located in
Southfield, Mich., is the North American headquarters.