DENSO to Establish Guangzhou, China Joint Venture To Produce Car Air Conditioners

Tokyo - DENSO Corporation today announced that it will establish a joint venture to produce air conditioners for automobiles and buses, radiators with Guangzhou Automobile Group Component CO., LTD., the auto parts supervising department of Guangzhou Automobile Industry Group CO., LTD., in Guangzhou, Guangdong, China.

DENSO (China) Investment CO., LTD., DENSO's wholly-owned holding company in China, will provide 60 percent of the capital; Guangzhou Automobile Group Component CO., LTD. will provide the remaining 40 percent. The new company, named GUANGZHOU DENSO CO.,LTD., will be established in May 2003.

"DENSO has supplied car air conditioners to customers throughout the nation from its production companies located in the northern part of China (Yantai and Tianjin) since 1999,"said Hiroshi Uchiyama, senior managing director of DENSO Corporation and in charge of DENSO Sales Group. "DENSO established Guangzhou company for business expansion into southern China."

Currently, DENSO operates six production companies in China:

Yantai Shougang DENSO Co., Ltd., Yantai, Shandong Province, People's Republic of China (business lines: manufacture and sale of air conditioners,; 30 percent DENSO ownership; 270 employees);
Tianjin DENSO Engine Electrical Products Co., Ltd., Tianjin, People's Republic of China (business lines: manufacture and sale of alternators and starters; 40 percent DENSO ownership; 435 employees);
Chongqing DENSO Co., Ltd., Chongqing, People's Republic of China (business lines: manufacture and sale of magnetos, CDI amplifiers and ignition coils; 50 percent DENSO ownership; 113 employees);
Tianjin DENSO Electronics Co., Ltd ., Tianjin , People's Republic of China (business lines: manufacture and sale of automotive electronic control components; 85.9 percent DENSO ownership; 63 employees);
Tianjin DENSO Air-Conditioner Co., Ltd ., Tianjin, People's Republic of China (business lines: manufacture and sale of air conditioners; 51 percent DENSO ownership; 216 employees), and
Tianjin ASMO Automotive Small Motor Co., Ltd., Tianjin, People's Republic of China (business lines: manufacture and sale of small motors; 11.25 percent DENSO ownership; 576 employees).

DENSO Corporation, headquartered in Kariya, Aichi prefecture, Japan, is a leading global supplier of advanced technology, systems and components. Worldwide, the company employs 87,000 people in 31 countries, including Japan. Consolidated global sales for the fiscal year ended March 31,

2002 totaled US$18.(*1) billion1 (2,401,098 million yen or 20.7 billion Euros). DENSO common stock is traded on the Tokyo, Osaka and Nagoya stock exchanges.

Company Profile
Name:	GUANGZHOU DENSO CO.,LTD.
Established:	May 2003 (planned)
Location:	Guangzhou Auto-Parts Industry Town, Yonghe, Zengcheng, Guangzhou China (about 35 kilometers southeast from the city-center of Guangzhou)
Capital:	US$ 23 million (280 million yen)(*2)
Ownership:	60 percent ownership by DENSO (China) Investment CO., LTD. 40 percent ownership by Guangzhou Automobile Group Component CO., LTD.
President:	Toshibumi Murayama (Current Senior Project Manager of Thermal Systems Manufacturing Planning & Development Dept., DENSO Corporation)
Product Lines:	Air conditioners for automobiles and buses, radiators
Employees:	150 in May 2003

Notes
*1:Figures for the fiscal year ended March 31, 2002 include the effect of an irregular 15-month reporting period, due to 45 overseas subsidiaries and overseas affiliates changing their year-ends to March 31 from December 31.
*2:Exchange rates used are 120 yen per one dollar at the end of March 2003.