DENSO to Establish New Production Company in Spain for Car Air Conditioners

TOKYO, Dec. 9, 2003 -- DENSO Corporation, parent company of Southfield, Mich.-based DENSO International America, Inc., today announced it will establish a new company in Vigo, Spain to produce products related to car air conditioners and radiators, beginning in April 2006.

The new company -- DENSO Sistemas Termicos Espana S.A. -- will be established this month with an initial capital investment of approximately US$20 million (16.5 million euro). By fiscal year ended March 31, 2010, DENSO expects to employ 300 people with projected sales of approximately US$120 million (100 million euro) at the new company. DENSO's total investment in the new operation will be US$25 million (21 million euro).

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

The new company, DENSO's ninth European production company related to car air conditioners and radiators, will supply its products to the PSA Peugeot- Citroen 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."

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 carmakers. 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. For more information, go to www.globaldenso.com .

In the Americas (North, Central and South America), DENSO employs more than 14,000 people at 32 locations. Consolidated sales for the Americas totaled $4.5 billion for the above fiscal year. For more information, go to www.densocorp-na.com .

        Company Profile
  Name:              DENSO Sistemas Termicos Espana S.A.
  Establishment:     December 2003 (planned)
  Location:          Vigo Galicia Region Spain (about six kilometers south
                      of the center of Vigo)
  Capital:           US$20 million (16.5 million euro)*
  Ownership:         100 percent ownership by DENSO Thermal Systems S.p.A.**

  Total Investment:  US$25 million (21 million euro)*
  Product Line:      Products related to air conditioners and radiators for
                      automobiles
  Sales:             US$120 million (100 million euro)* (projected for
                      fiscal 2010)
  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.

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