DENSO to Establish Shanghai, China Joint Venture to Produce Fuel Injection Pumps for Diesel Vehicles

TOKYO, Aug. 27, 2003 -- DENSO Corporation announced that it will establish a joint venture to produce fuel injection pumps for diesel vehicles with Shanghai Pudong "EV" Fuel Injection Co., Ltd. and Shanghai Dong Song International Trading Co., Ltd. Both companies are based in Shanghai, China.

DENSO will invest US$4.6 million in the joint venture -- Shanghai "DV" Fuel Injection Co., Ltd. -- which is owned by Shanghai Pudong "EV" Fuel Injection Co., Ltd. and Shanghai Dong Song International Trading Co., Ltd.

Shanghai "DV" Fuel Injection Co., Ltd. will be renamed Shanghai DENSO Fuel Injection Co., Ltd. when it is established in October of this year. The company will produce fuel injection pumps for diesel vehicles manufactured by China's automakers.

"DENSO has been providing technical support to Shanghai 'DV' Fuel Injection Co. Ltd., which currently produces fuel pumps," said Hiroshi Uchiyama, senior managing director in charge of DENSO's Sales Group. "Because the Chinese market is expected to grow as China continues to build its transportation infrastructure through a network of expressways, DENSO decided to invest capital in Shanghai 'DV' Fuel Injection Co., Ltd. Also, as emissions regulations are scheduled to tighten in China, DENSO plans to expand future common rail system components production in China."

Currently, DENSO operates seven production companies in 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; 347 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; 422 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; 105 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; 107 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; 324 employees);

* Guangzhou DENSO Co., Ltd., Guangzhou, People's Republic of China (Business lines: manufacture and sale of air conditioners; 60 percent DENSO ownership; 150 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; 560 employees).

DENSO Corporation, headquartered in Kariya, Aichi prefecture, Japan, is a leading global supplier of advanced technology, systems and components. Its customers include all the world's major automakers. Worldwide, the company employs 90,000 people in 31 countries and regions, including Japan. Consolidated global sales for the fiscal year ended March 31, 2003 totaled US$19.4 billion. DENSO common stock is traded on the Tokyo, Osaka and Nagoya stock exchanges. In the Americas (North, Central and South America), DENSO employs 14,000 people with consolidated sales of US$4.5 billion for fiscal year ended March 31, 2003.

  Company Profile

  Name:           Shanghai DENSO Fuel Injection Co., Ltd.
  Establish:      October 2003 (planned)
  Location:       Shanghai Pu-Dong Ave.
                  (about 10 miles east from the center of Shanghai)
  Capital:        US$13.6 million (1.6 billion yen)
  Ownership:      34 percent ownership by DENSO (China) Investment Co. Ltd.
                  61 percent ownership by Shanghai Pudong "EV" Fuel
                   Injection Co., Ltd.
                  5 percent ownership by Shanghai Dong Song International
                   Trading Co., Ltd.
  President:      Li Yong (current president of Shanghai "DV" Fuel Injection
                   Co., Ltd.)
  Product Lines:  Fuel injection pumps and nozzles for diesel vehicles
  Employees:      970 people in 2005 (planned)