Kyosan Denki America and DENSO to Establish Mt. Sterling, Ky. Manufacturing Facility

New Company Expects to Employ 230 People

LEXINGTON, Ky., March 10 -- Kyosan Denki America, Inc., of Winchester, Ky., and DENSO International America, Inc., of Southfield, Mich., today jointly announced at a news conference that the two companies will establish a North American manufacturing company in Mt. Sterling, Ky., to produce automotive components for North American car manufacturers.

The new company -- Kyosan DENSO Manufacturing Kentucky, LLC (KDMK), is expected to employ 230 people by 2008 and represents a US$14.7 million investment in North America for Kyosan Denki America and DENSO. Kyosan Denki will own 70 percent of the limited liability partnership and DENSO, 30 percent.

"Kyosan Denki America has been an excellent corporate citizen for Kentucky and we appreciate the investment they have made in the Commonwealth," said Kentucky Governor Paul E. Patton. "Having an existing business expand in Kentucky shows the corporate world that Kentucky is a profitable place to do business."

"It is with great pride and anticipation that we look for the start-up of Kyosan DENSO Manufacturing Kentucky in our community," said Mt. Sterling Mayor Gary Williamson. "We hear nothing but good reports about their community involvement and manufacturing practices."

Currently, Kyosan Denki America assembles automotive fuel systems, fuel cutoff valves, and on-board refueling vapor recovery valves in Winchester, but will transfer all U.S. production to the new facility in Mt. Sterling by the beginning of April 2003.

In addition, the following products will be added to production at the new Mt. Sterling facility:

  *  Fuel pump modules and fuel filters - production start March 2004;
  *  Suction filters - production start April 2005, and
  *  Pressure regulators - production start April 2006.

"We're looking forward to doing business in the great state of Kentucky," said Katsumi Urano, president of the new company. "Mt. Sterling is centrally located to our customers and we're excited to be part of the community. We hope to be a good contributor to the local economy."

Kyosan Denki America is a subsidiary of Kyosan Denki Co., Ltd. and headquartered in Ibaraki prefecture, Japan. The company, which produces components for fuel supply systems, fuel filtration systems and fuel control systems for the automotive industry, employs 1,333 people. Its consolidated net sales for the fiscal year ended March 31, 2002 totaled US$223 million.

DENSO International America is the North American headquarters for DENSO Corporation, a leading global automotive supplier of advanced technology, systems and components. Headquartered in Kariya, Aichi prefecture, Japan, DENSO employs worldwide 87,000 people in 31 countries, including Japan. Consolidated global sales for fiscal year ended March 31, 2002 totaled US$18.1 billion*. DENSO common stock is traded on the Tokyo, Osaka and Nagoya stock exchanges in Japan. In North America, DENSO employs 14,000 people at 25 companies with consolidated sales for the above fiscal year of US$4.7 billion*.

*Figures for the fiscal year ended March 31, 2002 include the effect of an irregular 15-month reporting period, due to 45 overseas subsidiaries and overseas affiliates changing their year-ends to March 31 from December 31.

  New Company Profile
  *  Name: Kyosan DENSO Manufacturing Kentucky, LLC
  *  Established: April 1, 2003

* Location: Mt. Sterling, Ky. (15 miles east/northeast of Winchester, Ky.)

  *  Ownership:  70 percent by Kyosan Denki America, Inc.
                 30 percent by DENSO International America, Inc.
  *  Capital Investment: US$10.8 million
  *  President: Katsumi Urano

* Product Lines: Fuel Pump Module Assembly Line, Suction Filter Assembly Line, Pressure Regulator Assembly Line, Onboard Refuel Vapor Valve Assembly Line, Cutoff Valve Assembly Line

  *  Sales: US$150 million (by 2008)
  *  Associates: 230 expected by 2008
  *  Site Area: 14.4 acres
  *  Building Area: 44,000 square feet

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