DENSO Acquires 25 Percent of Automotive Air Conditioner Company in the Republic of South Africa

TOKYO, March 17 -- DENSO Corporation (DENSO) and Metair Investments Limited (METAIR) have agreed today that DENSO will purchase 25 percent of the shares in Smiths Manufacturing (Pty) Ltd (SMITHS) from METAIR, the holding company for SMITHS. DENSO and SMITHS will work together to enhance competitiveness and manufacturing capabilities. The effective date of the investment is dependant on the approval by the relevant authorities.

SMITHS is the largest automotive air conditioner company in the Republic of South Africa (RSA).

DENSO has been involved in the RSA's automotive air conditioner market since 1982, when it entered into a technical assistance agreement for automotive air conditioners with SMITHS*. DENSO continues to provide technical assistance to SMITHS on automotive air conditioners, heaters, radiators and electric fans.

This investment will allow DENSO to expand its business foundation in the RSA and SMITHS to expand its technical expertise.

"Approximately 400,000 vehicles were manufactured in the RSA in 2004, and this market is expected to continue growing as a vehicle export base," said Satoshi Watanabe, senior managing director in charge of DENSO's Thermal Systems Group.

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 95,000 people in 31 countries and regions, including Japan. Consolidated global sales for the fiscal year ended March 31, 2004 totaled US$24.2 billion. DENSO common stock is traded on the Tokyo, Osaka and Nagoya stock exchanges. For more information, go to http://www.globaldenso.com/ .

*DENSO's 1982 technical assistance agreement was with Dunair. In 1986, Dunair was purchased by METAIR and combined with SMITHS.

  Corporate profile of SMITHS:

  1.  Name: Smiths Manufacturing (Pty) Limited
  2.  Established: 1980
  3.  Location: New Germany City, KwaZulu-Natal State, RSA (Suburb of
      Durban)
  4.  Capital: 170 million rand** (December 2004) (approximately 3 billion
      yen, approximately US$30 million)
  5.  Ownership (following DENSO's capital participation):
      METAIR: 75 percent
      DENSO: 25 percent
  6.  Representative: Leon P. Coetzee - managing director
  7.  Business fields: Manufacture and sale of automotive air conditioners
      and heat exchangers
  8.  Employees: 824 (December 2004)
  9.  Sales: Approximately 700 million rand** (2004) (approximately 13
      billion yen, approximately US$120 million)
  10. Major customers: Toyota, BMW

  Corporate profile of METAIR:

  1.  Name: Metair Investments Limited - Listed on the JSE Securities
      Exchange South Africa
  2.  Established: 1948
  3.  Location: Johannesburg City, Gauteng State, RSA
  4.  Capital: 806 million rand** (December 2004) (approximately 15 billion
      yen, approximately US$140 million)
  5.  Ownership: Wesco Investments Ltd and its subsidiaries: 40 percent
      Old Mutual Nominees (Pty) Ltd: 22 percent
  6.  Representative: Alan Plummer - managing director
  7.  Business fields: Holding company for automotive components
      manufacturer
  8.  Employees (consolidated base): 4,912 (December 2004)
  9.  Sales (consolidated base): approximately 2 billion rand** (2004)
      (approximately 36 billion yen, approximately US$350 million)

** Exchange rates used are 105 yen per one dollar and 5.8 rand per one dollar at the end of February 2005.