Denso to Establish New Car Air Conditioner Production Company in Spain

Tokyo, Japan, Dec. 09, 2003 - (JCN Newswire) - DENSO Corporation
today announced it will establish a new company in Vigo, Spain
that will begin to produce products related to car air conditioners and
radiators in April 2006. The new company - DENSO SISTEMAS TERMICOS
ESPANA S.A. - will be established this month with an initial capital
investment of approximately 16.5million euro (US$20 million).

By fiscal year ended March 31, 2010, DENSO expects to employ 300 people
with projected sales of approximately 100 million euro (US$120 million)
at the new company. DENSO's total investment in the new operation will
be 21 million euro (US$25 million).

DENSO plans to begin construction of an approximately
11,000-square-meter (118,000-square-foot) facility in May, within a site
of 37,000 square meters (398,000 square feet).

The new company, DENSO's ninth European production company related to
car air conditioners and radiators, will supply its products to the PSA
Peugeot-CitroE Group and other companies producing automobiles in
Spain. DENSO recently established manufacturing facilities in the Czech
Republic and Turkey. DENSO Manufacturing Czech s.r.o. and DENSO Otomotiv
Parcalari Sanayi Anonim Sirket in Turkey will begin production of
automotive thermal products in this fiscal year (by March 31, 2004).

"In Europe, the installation rate for automotive air conditioning
systems has been growing and will continue to grow," said Satoshi
Watanabe, DENSO managing director in charge of Thermal Systems. "In
2002, 11 million air conditioning units were installed, and we
anticipate that number to climb to 15 million units by 2005."

"Our goal in Europe is to strengthen our manufacturing base by going
where our customers are located, and this new company will enable us to
do that. In addition, it will help us to further promote our thermal
systems business to our European customers."

Company Profile
1. Name: DENSO SISTEMAS TERMICOS ESPANA S.A.
2. Establishment: December 2003 (planned)
3. Location: Vigo Galicia Region Spain (about six kilometers south of
the center of Vigo)
4. Capital: 16.5 million euro (US$20million) *
Ownership: 100 percent ownership by DENSO THERMAL SYSTEMS S.p.A. **
5. Total Investment: 21 million euro (US$25 million) *
6. Product Line: Products related to air conditioners and radiators for
automobiles
7. Sales: 100 million euro (US$120 million) * (projected for fiscal
2010)
8. Employees: 300 (projected for fiscal 2010)

*Exchange rates used are 1.2 dollar per one euro, at the end of November
2003.
** 100 percent DENSO-owned production company in Italy