KYOSAN DENSO MANUFACTURING KENTUCKY Announces Mt. Sterling Facility Expansion

By End of 2008, 250 Jobs to be Added; Investment of US$2.1 Million

MT. STERLING, Ky., Sept. 2 -- KYOSAN DENSO MANUFACTURING KENTUCKY, LLC (KDMK) has announced plans to expand its Mt. Sterling manufacturing facility from 44,000 square feet to more than 79,000 square feet. The expansion will accommodate additional automotive fuel pump module assembly lines. As a result, the automotive components supplier expects to more than double the number of current employees. Currently, KDMK employs 150 people.

The announcement comes little more than a year after the company moved its manufacturing operations from Winchester, Ky. to Mt. Sterling, expecting at that time to employ up to 230 people by 2008. Construction of the expanded facility started last month with completion scheduled for March 2005. Total investment for the expansion will be US$2.1 million.

"Our high-quality, hard-working associates, combined with the excellent support we have received from the city and state, have enabled us to expand much earlier than planned," said President Katsumi Urano. "We estimate that our sales will increase from US$40 million in 2004 to US$150 million by 2008 due to this expansion."

Applications for the new jobs are being accepted by the Department of Employment Services at either of two locations: 126 Bradley Ave, Morehead, KY 40351, Phone 606-784-7538, Fax 606-784-2631; or 108 East Locust St., Mt. Sterling, KY 40353, Phone 859-498-4418, Fax 859-498-4782.

KDMK assembles automotive fuel systems, on-board refueling vapor recovery valves, and fuel pump modules for North American car manufacturers. Production starts for two additional component parts for the fuel pump modules -- suction filters in April 2005 and pressure regulators in April 2006 -- had been planned prior to today's announcement.

KYOSAN DENSO MANUFACTURING KENTUCKY is a joint venture between Kyosan Denki America, Inc. and DENSO International America, Inc. Kyosan Denki owns 70 percent of the limited liability partnership and DENSO, 30 percent.

Kyosan Denki America is a subsidiary of Kyosan Denki Co., Ltd., headquartered in Ibaraki prefecture, Japan. The company, which produces components for fuel supply systems, fuel filtration systems and fuel control systems for the automotive industry, employs 1,515 people worldwide. Its consolidated net sales for fiscal year ended March 31, 2004 totaled US$341 million.

DENSO International America is the North American headquarters for DENSO Corporation, a leading global automotive supplier of advanced technology, systems and components. Headquartered in Kariya, Aichi prefecture, Japan, DENSO employs 95,000 people in 31 countries, including Japan. Consolidated global sales for fiscal year ended March 31, 2004 totaled US$24.2 billion. DENSO common stock is traded on the Tokyo, Osaka and Nagoya stock exchanges in Japan. In the Americas (North, Central and South America), DENSO employs 14,000 people at 32 companies with consolidated sales for the above fiscal year totaling US$5.3 billion.

  Company Profile
  *   Name: KYOSAN DENSO MANUFACTURING KENTUCKY, LLC
  *   Established: April 1, 2003
  *   Location: Mt. Sterling, Ky. (35 miles east/northeast of Lexington,
      Ky.)
  *   Ownership:  70 percent by Kyosan Denki America, Inc.
                  30 percent by DENSO International America, Inc.
  *   Capital Investment: US$10.8 million
  *   President: Katsumi Urano
  *   Products: Fuel pump modules, onboard refuel vapor valves
  *   Sales: US$150 million projected by 2008
  *   Associates: Currently 150.  Projected by 2008: 400
  *   Site Area: No change from current 14.4 acres
  *   Building Area: Currently 44,000 square feet.  After expansion, 79,000
      square feet

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