DENSO Global Consolidated Net Income Hits Record High

Operating Income Increases by 19.9 percent

TOKYO, April 25 -- DENSO Corporation, parent company of Southfield, Mich.-based DENSO International America, today announced global financial results for the fiscal year ended March 31, 2003 as following:

* Consolidated net sales totaled US$19.4 billion (2,332.8 billion yen), a 2.8 percent decrease from the previous year due to the previous year's irregular 15-month reporting in overseas subsidiaries (6.9 percent increase from the previous year excluding the irregular 15-month reporting).

* Operating income totaled US$1.3 billion (159.9 billion yen), a 19.9 percent increase from the previous year. (23.1 percent increase from the previous year excluding the irregular 15-month reporting).

* Consolidated net income totaled US$925.2 million (111.0 billion yen), a 53.5 percent increase from the previous year due to extraordinary income mainly by liquidation of the entrusted Government's portion of the benefits provided by Social Welfare Pension Funds. (56.8 percent increase from the previous year excluding the irregular 15-month reporting).

"In Japan, sales totaled US$14.4 billion (1,730.7 billion yen), a 5.3 percent increase from the previous year, and operating income totaled US$1.0 billion (123.2 billion yen), an 8.6 percent increase from the previous year, which was led by sales expansion and the increase of exports," said Masatoshi Ano, chief financial officer, DENSO Corporation.

Combined sales for North, Central and South America, totaled US$4.5 billion (540.6 billion yen), a 16 percent decrease from the previous year (5.6 percent increase from the previous year excluding the irregular 15-month reporting due to steady trading volume). Ano said an increase in production volume, cost reduction activities and the exit of the handset business boosted operating income that totaled 28.2 billion yen (US$234.8 million), an increase of 54.3 percent (76.2 percent increase from the previous year excluding the irregular 15-month reporting).

In Europe, sales totaled US$2.3 billion (274.0 billion yen), an 11.4 percent decrease (13.1 percent increase from the previous year excluding the irregular 15-month reporting from the previous year due to the depreciated yen to euro exchange rate). Decreased production volume and changed product mix resulted in an operating loss of US$33.0 million (4.0 billion yen), Ano said.

In Asia and Oceania, sales totaled US$1.5 billion (185.9 billion yen), a 9.7 percent increase from the previous year (28.4 percent increase from the previous year excluding the irregular 15-month reporting), and operating income totaled US$103.0 million (12.4 billion yen), a 62.7 percent increase from the previous year (108.4 percent increase from the previous year excluding the irregular 15-month reporting). In addition to cost reduction activities, increased sales in Thailand, Malaysia, and Taiwan drastically increased sales and operating income in the region, Ano said.

"Income before income taxes and minority interests for the year ended March 31, 2003 totaled US$1.9 billion (233.5 billion yen), a 68.0 percent increase from the previous year (72.5 percent increase from the previous year excluding the irregular 15-month reporting) due in large part to US$559.9 million (67.2 billion yen) extraordinary income profit from the liquidation of entrusted welfare pension benefits by the government and a loss from the one- time amortization of goodwill at one of our subsidiaries in Italy," said Ano.

  Forecast for Fiscal Year Ended March 31, 2004 is outlined below:
                         Current FY Forecast     Changes from Previous FY

  Net Sales                US$19.8 billion
                         (2,370.0 billion yen)     1.6 percent increase
  Income before income
   taxes and minority
    interests               US$1.4 billion
                          (168.0 billion yen)     28.1 percent decrease

  Net Income                US$766.7 million
                           (92.0 billion yen)     17.1 percent decrease
                                                  (3.6 percent increase:
                                                   Excluding the effect of
                                                   extraordinary income)

DENSO Corporation, headquartered in Kariya, Aichi prefecture, Japan is a leading global supplier of advanced technology, systems and components. Worldwide, the company employs 90,000 people in 31 countries and regions, including Japan. DENSO common stock is traded on the Tokyo, Osaka and Nagoya stock exchanges. In the Americas (North, Central and South America), DENSO employs a combined total of 14,000 people. DENSO International America, Inc. serves as North American headquarters.

Notes

U.S. dollar amounts have been translated, for convenience only, at the rate of 120 yen = US$1, the approximate exchange rate prevailing on March 31, 2003. Billion is used in the American sense of one thousand million.

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