DENSO's Global Consolidated Net Sales Climb to US$11.0 Billion

A 7.2 Percent Increase from Same Period Last Fiscal Year

TOKYO, Oct. 28 -- DENSO Corporation today announced global financial results for the first half year ended September 30, 2003:

* Consolidated net sales totaled 1,226.3 billion yen (US$11.0 billion), a 7.2 percent increase from the same period last fiscal year.

* Consolidated net income totaled 52.9 billion yen (US$476.9 million), a 50.3 percent decrease from the same period last fiscal year due to extraordinary income. This was caused mainly by liquidation of the entrusted welfare pension benefits by the Government of Japan recorded in the previous period. Excluding the effect of this extraordinary income, the net income would be 52.0 billion yen (US$468.5 million), a 17.4 percent increase from the previous period.

* Operating income totaled 91.6 billion yen (US$825.4 million), a 14.4 percent increase from the same period last fiscal year.

"We were satisfied with the financial results of the first half of this year," said DENSO Corporation Chief Financial Officer Nobuaki Katoh. "The overseas increase in car production for Japanese auto manufacturers contributed to these satisfactory results."

In Japan, sales totaled 889.2 billion yen (US$8.0 billion), a 6.6 percent increase from the same period last fiscal year, and operating income totaled 64.8 billion yen (US$583.5 million), a 15.3 percent increase, which was led by sales expansion and a demand for replacement trucks due to new diesel engine emission regulations.

Although a steady increase in sales volumes for Japanese car manufacturers continues in North America, Central America and South America, an appreciated yen against the U.S. dollar resulted in a slight increase of both sales and operating income. Combined sales for those regions totaled 284.4 billion yen (US$2.6 billion), a 1.2 percent increase from the same period last fiscal year (a 5.3 percent increase in local currency), and operating income totaled 17.8 billion yen (US$160.2 million), an increase of 2.1 percent.

In Europe, production volume increases, especially for Japanese car manufacturers, and a depreciated yen against the euro led to increased sales of 157.6 billion yen (US$1.4 billion), an 18.7 percent increase from the same period in the previous fiscal year (a 6.7 percent increase in local currency) and 0.2 billion yen (US$1.8 million), operating income.

In Asia and Oceania, sales totaled 108.4 billion yen (US$1.0 billion), a 21.4 percent increase from the same period last fiscal year, and operating income totaled 9.2 billion yen (US$82.7 million), a 29.2 percent increase. Substantial sales increases, especially in Thailand, China and Australia, contributed to drastic increases in both sales and operating income.

Income before income taxes and minority interests for the year totaled 96.2 billion yen (US$866.5 million), a 48.5 percent decrease from the same period last fiscal year because 105.4 billion yen (US$949.4 million) of extraordinary items, mainly of the above-mentioned extraordinary income were recorded in the previous period.

Forecast for Fiscal Year Ended March 31, 2004

Katoh said, "We have revised and raised our original plan announced in April 25, 2003. Net sales may hit a record high."

                             Current FY Forecast    Changes from Previous FY

  Net Sales                  2,440.0 billion yen        + 4.6 percent
                             (US$22.0 billion)

  Income before income taxes 166.0 billion yen          - 28.9 percent
  and minority interests     (US$1.5 billion)

  Net Income                 88.0 billion yen           - 20.7 percent
                             (US$792.8 million)         (+ 8.3 percent:
                                                        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 Japan.

Notes

U.S. dollar amounts have been translated, for convenience only, at the rate of 111 yen = US$1, the approximate exchange rate prevailing on September 30, 2003. Billion is used in the American sense of one thousand million.

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