DENSO Announces First-Quarter Financial Results

Global Consolidated Net Sales Rise More than 10 Percent

TOKYO, July 29 -- DENSO Corporation today announced global financial results for the first quarter ended June 30, 2004:

* Consolidated net sales totaled 680.2 billion yen (US$6.3 billion), a 10.7 percent increase from the first quarter of last term.

* Operating income totaled 59.9 billion yen (US$554.6 million), a 15.9 percent increase from the first quarter of last term.

* Income before income taxes and minority interests for the period totaled 63.6 billion yen (US$588.9 million), a 10.4 percent increase from the first quarter of last term.

* Consolidated net income totaled 36.9 billion yen (US$341.7 million), a 26.9 percent increase from the first quarter of last term.

"We are pleased with the financial results for this first quarter," said Koji Kobayashi, managing officer of DENSO Corporation. "The increase in domestic and overseas car production for Japanese auto manufacturers contributed to the increase in sales, and the increase in production volume in Japan contributed to the increase in operating income."

In Japan, sales totaled 491.1 billion yen (US$4.5 billion), a 12.5 percent increase from the first quarter of last term, and operating income totaled 48.6 billion yen (US$450 million), a 33.0 percent increase from the first quarter of last term. Robust domestic car production and a rise in the popularity of car navigation systems contributed to the increase in sales. The increase in operating income was led by the increase in production volume.

In North, Central and South America, combined sales for those regions totaled 149.8 billion yen (US$1.4 billion), a 2.4 percent increase from the first quarter of last term. An appreciated yen against the U.S. dollar resulted in this slight increase. Without the effect of the exchange rate, combined sales increased by 10.0%. In spite of production volume increases, operating income decreased to 9.0 billion yen (US$83.3 million), a decrease of 15.9 percent, due to the appreciated yen against the U.S. dollar and new additions to the product line-up.

In Europe, sales totaled 96.9 billion yen (US$897.2 million), a 15.0 percent increase from the previous period due to the sales expansion of diesel common rail systems, and car air conditioners. Start-up costs in the Czech Republic led to a 0.7 billion yen (US$6.5 million) operating loss in this region.

In Asia and Oceania, sales totaled 61.4 billion yen (US$568.5 million), a 15.5 percent increase from the first quarter of last term, and operating income totaled 4.1 billion yen (US$38.0 million), a 22.1 percent decrease from the first quarter of last term. An increase in sales in ASEAN countries, China, India, and Taiwan contributed to the higher number. Start-up costs in Thailand and other subsidiaries resulted in the decrease in operating income.

"As a result of our good financial results in this first quarter, we have revised and raised our first-half estimate announced April 27, 2004," said Kobayashi.

  Forecast for First-Half Fiscal Year Ended September 30, 2004
                                Revised First-half        Changes from
                                     Forecast          Previous First-half
  Net sales                     1,340.0 billion yen       +9.3 percent
                                 (US$12.4 billion)
  Operating income                103.0 billion yen      +12.4 percent
                                 (US$953.7 million)
  Income before income taxes
   and minority interests         108.0 billion yen      +14.2 percent
                               (US$1,000.0 billion)
  Net income                       62.0 billion yen      +17.1 percent
                                 (US$574.1 million)

DENSO Corporation, headquartered in Kariya, Aichi prefecture, Japan, is a leading global supplier of advanced technology, systems and components. Worldwide, the company employs 95,000 people in 31 countries and regions, including Japan. DENSO common stock is traded on the Tokyo, Osaka and Nagoya stock exchanges in Japan. For more information, see http://www.globaldenso.com/ .

In North, Central and South America, DENSO employs a combined total of 14,000 people. For more information, see http://www.densocorp-na.com/ .

Notes:

U.S. dollar amounts have been translated, for convenience only, at the rate of 108 yen = US$1, the approximate exchange rate prevailing on June 30, 2004. Billion is used in the American sense of one thousand million.