DENSO Announces Year-end Financial Results

Net Sales, Operating Income and Net Income Hit Record High

TOKYO, April 27 -- DENSO Corporation today announced global financial results for the fiscal year ended March 31, 2005:

* Consolidated net sales totaled 2,799.9 billion yen (US$26.2 billion), a 9.3 percent increase from the previous year.

* Consolidated operating income totaled 213.8 billion yen (US$2.0 billion), a 13.4 percent from the previous year.

* Consolidated net income totaled 132.6 billion yen (US$1.2 billion), a 20.5 percent increase from the previous year.

"This year we have hit record highs for consolidated net sales, consolidated operating income and consolidated net income," said Nobuaki Katoh, managing officer of DENSO Corporation. "These favorable results are due to a continued increase in domestic and overseas car production for Japanese auto manufacturers."

In Japan, sales totaled 2,060.6 billion yen (US$19.3 billion), a 9.3 percent increase from the previous year, and operating income totaled 180.0 billion yen (US$1.7 billion), a 17.3 percent increase from the previous year. The sales increase/increase in sales was led by strong domestic car production and the increased sales of ITS (Intelligent Transport Systems) products, including car navigation systems.

In spite of steadily increasing production volume for Japanese auto manufacturers in North America, Central America and South America, the appreciated yen versus the U.S. dollar resulted in only a slight sales increase. Combined sales for those regions totaled 580.2 billion yen (US$5.4 billion), a 4.0 percent increase from the previous year. In addition, the appreciation of the yen against the U.S. dollar as well as the cost of new additions to the product line-up resulted in a 4.8 percent drop in operating income, to 23.6 billion yen (US$220.6 million), in spite of production volume increases and cost reduction activities.

In Europe, sales totaled 374.1 billion yen (US$3.5 billion), a 10.6 percent increase from the previous year, due to expanded sales of diesel common rail systems and car navigation systems. However, start-up costs in the Czech Republic and expansion of production capacity in Hungary led to an 8.8 billion yen (US$82.2 million) operating loss.

In Asia and Oceania, sales totaled 290.9 billion yen (US$2.7 billion), a 30.1 percent increase from the previous year, and operating income totaled 20.1 billion yen (US$187.9 million), a 34.7 percent increase from the previous year. The Toyota Innovative International Multi-purpose Vehicle project, especially in ASEAN countries, resulted in an increase in both sales and operating income.

   Forecast for Fiscal Year Ended March 31, 2006

                      Half Year           Current FY          Changes
                      Forecast             Forecast       from Previous FY

   Net Sales     1,440.0 billion yen  2,950.0 billion yen  + 5.4 percent
                 (US$ 13.5 billion)    (US$ 27.6 billion)

   Income before          -             225.0 billion yen  + 0.7 percent
   income taxes                         (US$ 2.1 billion)
   and minority
   interests

   Net Income       53.0 billion yen    134.0 billion yen  + 1.0 percent
                  (US$ 0.5 billion)     (US$ 1.3 billion)

DENSO Corporation, headquartered in Kariya, Aichi prefecture, Japan, is a leading global supplier of advanced technology, systems and components. Worldwide, the company employs 104,000 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 the Americas, DENSO employs more than 14,000 people at 33 companies.

  (Notes)

U.S. dollar amounts have been translated, for convenience only, at the rate of 107 yen = US$1, the approximate exchange rate prevailing on March 31, 2005. Billion is used in the American sense of one thousand million.

A complete financial statement is posted at http://www.densocorp-na.com/ .