- Net Sales, Operating Income and Net Income Hit Record Highs -

Kariya (Japan) - DENSO Corporation today announced global financial results for the fiscal year ended March 31, 2008:

• Consolidated net sales totaled 4,025.1 billion yen (US$40.2 billion), an 11.5 percent increase from the previous year.
• Consolidated operating income totaled 348.7 billion yen (US$3.5 billion), a 15.0 percent increase from the previous year.
• Consolidated net income totaled 244.4 billion yen (US$2.4 billion), a 19.1 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, senior managing director of DENSO Corporation. "These favorable results are due to an increase in the export of vehicles and overseas car production for Japanese auto manufacturers."

In Japan, sales totaled 2,725.9 billion yen (US$27.2 billion), a 7.3 percent increase from the previous year. Increased export of vehicles to emerging countries contributed to the increase in sales. Despite production volume increases, the increase in depreciation costs associated with a tax law change in Japan led to operating income of 197.5 billion yen (US$2.0 billion), an 8.3 percent decrease from the previous year.

In North, Central and South America, increased production volume for Japanese auto manufacturers and sales expansion to Toyota, General Motors, and Ford led to an increase in sales to 832.3 billion yen (US$8.3 billion), an 8.2 percent increase from the previous year. Operating income increased to 41.5 billion yen (US$414.5 million), an increase of 42.3 percent from the previous year. Increased production volume and cost reduction efforts resulted in the increase in operating income.

In Europe, sales expansion to Ford, PSA and Fiat for diesel common rail systems and air conditioners raised sales to 620.3 billion yen (US$6.2 billion), a 19.4 percent increase from the previous year. Operating income more than doubled from 12.2 billion yen (US$121.4 million) the previous year to 26.5 billion yen (US$265.0 million), as a result of increased production volume and cost reduction efforts.

In Asia and Oceania, sales totaled 616.2 billion yen (US$6.1 billion), a 28.3 percent increase from the previous year, because of increased car production for Japanese auto manufacturers in ASEAN countries and China. Operating income increased to 80.4 billion yen (US$802.8 million), a 75.1 percent increase from the previous year, as a result of the sales expansion of air conditioners and diesel common rail systems in Thailand and the stable expansion of China operations.

"The business environment around us is very severe, although we achieved healthy financial results for the fiscal year ended March 31, 2008," said Kobayashi. "Considering the recent appreciation of the yen, the estimated decrease in car production in North America, and rising material costs, we forecast a slight increase in consolidated net sales and a decrease in operating income for the fiscal year ending March 31, 2009."

Kobayashi continued, "We are looking at a variety of measures we can implement to keep that decrease as low as possible in the next fiscal year."

DENSO Corporation, headquartered in Kariya, Aichi prefecture, Japan, is a leading global supplier of advanced technology, systems and components. Worldwide, the company employs 119,000 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, go to www.denso.com.

Forecast for Fiscal Year Ending March 31, 2009

(Notes)
U.S. dollar amounts have been translated, for convenience only, at the rate of 100.19 yen = US$1, the approximate exchange rate prevailing in the Tokyo Foreign Exchange Market on March 31, 2008. Billion is used in the American sense of one thousand million.