DENSO Establishes Regional Headquarters in China

TOKYO, April 1 -- Japan-based DENSO Corporation announced the establishment of a new DENSO wholly-owned holding company which will function as a regional headquarters in China. Located in Beijing, China, DENSO (China) Investment Co., Ltd. was established in February 2003.

Currently, DENSO operates six manufacturing companies in China that manufacture automotive products for the Chinese auto industry, including car air conditioners and electric components. Ownership of the six companies will be transferred to the new company by the end of March 2004.

"We hope by consolidating and strengthening all sales functions within one company, it will create a framework for sales expansion. In addition, DENSO plans to integrate administrative functions including accounting, information systems and logistical affairs to establish a more efficient business operation over the next three years," said Hiroshi Uchiyama, senior managing director of DENSO Corporation and in charge of DENSO Sales Group.

Uchiyama added, "By 2010, China is forecasted to more than double the 3.25 million vehicle output of 2002. Such predictions also are expected to see dramatic growth, possibly making China the largest car producing country in the world next to America and Japan. Our customers are already expanding their businesses in this fast-growing market. DENSO recognizes the urgent need to enhance our sales and supply systems in China."

Currently, DENSO operates six manufacturing companies in People's Republic of China:

* Yantai Shougang DENSO Co., Ltd., Yantai, Shandong Province, People's Republic of China (business lines: manufacture and sale of air conditioners; 30 percent DENSO ownership; 270 employees);

* Tianjin DENSO Engine Electrical Products Co., Ltd., Tianjin, People's Republic of China (business lines: manufacture and sale of alternators and starters; 40 percent DENSO ownership; 435 employees);

* Chongqing DENSO Co., Ltd., Chongqing, People's Republic of China (business lines: manufacture and sale of magnetos, CDI amplifiers and ignition coils; 50 percent DENSO ownership; 113 employees);

* Tianjin DENSO Electronics Co., Ltd., Tianjin, People's Republic of China (business lines: manufacture and sale of automotive electronic control components; 85.9 percent DENSO ownership; 63 employees);

* Tianjin DENSO Air-Conditioner Co., Ltd., Tianjin, People's Republic of China (business lines: manufacture and sale of air conditioners; 51 percent DENSO ownership; 216 employees), and

* Tianjin ASMO Automotive Small Motor Co., Ltd., Tianjin, People's Republic of China (business lines: manufacture and sale of small motors; 11.25 percent DENSO ownership; 576 employees).

DENSO Corporation, headquartered in Kariya, Aichi prefecture, Japan, is a leading global supplier of advanced technology, systems and components. Worldwide, the company employs 87,000 people in 31 countries, including Japan. Consolidated global sales for the fiscal year ended March 31, 2002 totaled US$18.1 billion(1) (2,401,098 million yen or 20.7 billion euros). In North America, DENSO employs 14,000 at 25 companies with consolidated sales for the above fiscal year totaling $4.7 billion. DENSO common stock is traded on the Tokyo, Osaka and Nagoya stock exchanges.

  Company Profile

  Name:         DENSO (China) Investment Co., Limited
  Established:  Feb. 24, 2003
  Location:     Chaoyang District, Beijing, People's Republic of China
                (about 7 kilometers from the city-center of Beijing)
                (founded in the current Beijing Office)
  Capital:      US$30 million (248.4 million RMB or 3.6 billion yen)(2)
  Ownership:    100 percent ownership by DENSO
  President:    Noboru Yamada (Chief Representative of Tianjin Office)
  Employees:    90 projected for 2005

  NOTES

(1) 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.

(2) Original unit is US$, and exchange rates used are 120 yen per one dollar and 14.5 yen per one RMB at the end of December 2002.

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