DENSO's Global Consolidated Net Sales Rise to 1,354.5 Billion Yen

An Increase of 10.5 Percent Over Previous Year

TOKYO, Oct. 28 -- DENSO Corporation today announced global financial results for the first half year ended September 30, 2004:

   * Consolidated net sales totaled 1,354.5 billion yen (US$12.2 billion), a
     10.5 percent increase from the same time period the previous year.

   * Operating income totaled 107.3 billion yen (US$966.7 million), a 17.1
     percent increase from the previous year.

   * Income before income taxes and minority interests for the year totaled
     112.3 billion yen (US$1.0 billion), a 16.8 percent increase from the
     previous year

   * Consolidated net income totaled 66.4 billion yen (US$598.2 million), a
     25.5 percent increase from the previous year.

"We are satisfied with the financial results for this first half year," said Nobuaki Katoh, managing officer, DENSO Corporation. "Compared with our original estimate, our results have exceeded our expectations, mainly due to the continued increase in domestic and overseas car production for Japanese auto manufacturers."

In Japan, sales totaled 995.0 billion yen (US$9.0 billion), an 11.9 percent increase from the previous year, and operating income totaled 87.1 billion yen (US$784.7 million), a 34.5 percent increase from the previous year, which was led by strong domestic car production, and a sales increase of high-value products such as adaptive cruise control and pre-collision safety systems.

Although sales volume continues to rise in the Americas, an appreciated yen against the U.S. dollar resulted in only a small sales increase. Combined sales for the Americas totaled 294.3 billion yen (US$2.7 billion), a 3.5 percent increase from the previous year. Without the effect of the exchange rate, combined sales increased by 10.7 percent. Operating income totaled 15.2 billion yen (US$136.9 million), a decrease of 14.2 percent, also due to the appreciation of the yen against the U.S. dollar and new additions to the product line-up.

In Europe, the sales expansion of diesel common rail systems, and car air conditioners led to increased sales of 183.5 billion yen (US$1.7 billion), a 16.4 percent increase from the previous year. However, start-up costs in the Czech Republic led to a 2.2 billion yen (US$19.8 million) operating loss.

In Asia and Oceania, sales totaled 127.1billion yen (US$1.1 billion), a 17.3 percent increase from the previous year. Substantial sales increases, especially in ASEAN countries, contributed to the increase. Start-up costs in Thailand due to the TOYOTA IMV project resulted in an operating income decrease of 8.2 billion yen (US$73.9 million), a 10.6 percent decrease from the previous year.

"As a result of our strong financial results this period, we have revised our fiscal year 2004 forecast," said Katoh.

   Forecast for Fiscal Year Ending March 31, 2005

                             Current FY Forecast    Changes from Previous FY

  Net Sales                  2,740.0 billion yen      + 6.9 percent
                              (US$ 24.7 billion)

  Income before income taxes
   and minority interests     226.7 billion yen       + 22.0 percent
                              (US$ 2.0 billion)

  Net Income                  132.0 billion yen       + 20.0 percent
                              (US$ 1.2 billion)

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. In the Americas, DENSO employs 14,000 people at 33 companies.

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, 2004. Billion is used in the American sense of one thousand million.

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