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DENSO Establishes New Software Development Company For Telematics Products Such as Navigation Systems

9 August 2000

DENSO Establishes New Software Development Company For Telematics Products Such as Navigation Systems

    SOUTHFIELD, Mich. - Japan-based DENSO Corporation, parent company of DENSO 
International America, Inc., announced that it has established as of Aug. 2, 
2000, a new company to develop pioneering front-end software technology as well 
as application technology for telematics products such as navigation systems.

    The new company - DENSO IT Laboratory, Inc. -- is located in Shibuya,
Tokyo, an area commonly called "Bit Valley" due to the high concentration
there of high-tech industries.

    "We decided to establish the new company in the belief that high
technology -- specifically the basic and applied software technology that will
function as the nucleus of business in the future -- will be required to
enhance product competitiveness and expand business," said Norio Omori,
concurrently president of the new company and senior managing director of
DENSO Corporation.

    Omori added, "The Shibuya, Tokyo location was chosen to attract talented
people with expertise in advanced information technology and to take advantage
of technologies offered by local firms."

    DENSO Corporation will own 65 percent of the new company and DENSO Create
Inc., a systems engineering firm, will own 35 percent.  Sales and employee
projections for 2005 are $7 million and 35, respectively.

    DENSO IT Laboratory , Inc. is the third affiliated company established as
part of DENSO's software development effort, following DENSO Techno Co., Ltd.,
a software programming company established in 1984, and DENSO Create Inc.,
established in 1991.

    DENSO Corporation of Kariya, Aichi, Japan, is a global supplier of
advanced technology, systems and components, including in-vehicle navigation
systems.  The company employs 81,000 people in 26 countries.  Consolidated
global sales for the fiscal year ending March 31, 2000 totaled $17.8 billion.

    In North America, DENSO employs 13,000 people at 21 companies, with 1999
consolidated sales of $3.6 billion.