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, 2006:

* Consolidated net sales totaled 3,188.3 billion yen (US$27.3 billion), a 13.9 percent increase from the previous year.

* Consolidated operating income totaled 266.6 billion yen (US$2.3 billion), a 24.6 percent increase from the previous year.

* Consolidated net income totaled 169.6 billion yen (US$1.4 billion), a 27.9 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 Koji Kobayashi, 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 2,289.0 billion yen (US$19.6 billion), an 11.1 percent increase from the previous year, and operating income totaled 207.7 billion yen (US$1.8 billion), a 15.4 percent increase from the previous year. The sales increase was led by strong domestic car production and the increased sales of car navigation systems.

In North, Central and South America, strong production by Japanese auto manufacturers in North America contributed to the increase in sales, which totaled 690.4 billion yen (US$5.9 billion), a 19.0 percent increase from the previous year. In spite of increased sales, operating income totaled 21.9 billion yen (US$187.2 million), a decrease of 7.5 percent from the previous year, due to extra costs related to production increases, new additions to the product line-up, and an increase in fixed costs.

In Europe, increased sales of car navigation systems, car air conditioners, and diesel common rail injection systems led to a rise in overall sales to 423.0 billion yen (US$3.6 billion), a 13.1 percent increase from the previous year. With the contribution of increased production volume in Hungary and the Czech Republic, operating income improved from a loss in the previous year to a gain of 1.6 billion yen (US$13.7 million).

In Asia and Oceania, sales totaled 395.1 billion yen (US$3.4 billion), a 35.8 percent increase from the previous year, and operating income totaled 36.7 billion yen (US$313.7 million), an 82.9 percent increase from the previous year. Strong production for the Toyota Innovative International Multi-purpose Vehicle and other Japanese auto manufacturers in Asia and Oceania led to the increase in both sales and operating income.

  Forecast for Fiscal Year Ending March 31, 2007

                Half Year Forecast    Current FY Forecast      Changes
                                                            from Previous FY
    Net Sales  1,635.0 billion yen    3,380.0 billion yen    + 6.0 percent
                (US$14.0 billion)      (US$28.9 billion)
  Income before          -              293.0 billion yen    + 7.8 percent
   income taxes                         (US$2.5 billion)
   and minority
   interests

    Net Income    73.5 billion yen      173.0 billion yen    + 2.0 percent
                (US$628.2 million)      (US$1.5 billion)

DENSO Corporation, headquartered in Kariya, Aichi prefecture, Japan, is a leading global supplier of advanced technology, systems and components. Worldwide, the company employs approximately 106,000 people in 32 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/ or visit our media website at http://www.densomediacenter.com/ .

In the Americas, DENSO employs more than 15,000 people at 33 companies. Southfield, Mich.-based DENSO International America, Inc. serves as DENSO's North American headquarters. For more information, go to http://www.densocorp-na.com/ .

(Notes)

U.S. dollar amounts have been translated, for convenience only, at the rate of 117 yen = US$1, the approximate exchange rate prevailing on March 31, 2006. Billion is used in the American sense of one thousand million.