---

DENSO to Acquire Magneti Marelli Thermal Systems Division

28 November 2000

DENSO to Acquire Magneti Marelli Thermal Systems Division

    SOUTHFIELD, Mich., Nov. 28 Japan-based DENSO Corporation,
parent company of DENSO International America, Inc., today announced that it
had reached an agreement yesterday with Magneti Marelli S.p.A. of Milan,
Italy, that gives DENSO the exclusive right to negotiate for the purchase of
Magneti Marelli's Thermal Systems Division.
    DENSO, listed on the Tokyo, Osaka and Nagoya stock exchanges, has been
exploring the potential of increased involvement in the European automotive
air-conditioning equipment market for a number of years, according to company
officials.  DENSO has had a joint venture agreement with Magneti Marelli in
this area since 1990.
    The deal marks the latest stage in DENSO's consolidation of its presence
as a global leader in the automotive components sector.
    "DENSO decided to acquire the Italian firm's air-conditioning unit based
on its projections of increased sales of air-conditioners in Europe,
particularly in compact cars," said DENSO President and CEO Hiromu Okabe.
    A world leader in the development and manufacture of automotive air
conditioners and radiators, the Thermal Systems Division of Magneti Marelli
operates production facilities in Italy, Poland, Portugal, Argentina, Brazil
and India.
    In Europe, the division currently supplies its products to leading
European car manufacturers such as Fiat, Peugeot and Renault.  Its European
market share, at approximately 10 percent, ranks fourth behind Valeo, Behr and
Visteon.
    Okabe added, "Success in the automotive sector is dependent on developing
a global reach.  The acquisition of Magneti Marelli's Thermal Systems Division
will consolidate our position in the European marketplace, making DENSO in
Europe a premiere manufacturer of air conditioning systems," said DENSO
President and CEO Hiromu Okabe.