- Worldwide decline in car production and currency exchange loss
results in drop in net sales and operating income -

Kariya (Japan) -DENSO Corporation today announced global financial results for the first to third quarters for the nine months ended December 31, 2008:

• Consolidated net sales totaled 2,630.3 billion yen (US$28.9 billion), an 11.6 percent decrease from the previous year.
• Consolidated operating income totaled 85.2 billion yen (US$935.4 million), a 68.8 percent decrease from the previous year.
• Consolidated net income totaled 37.1 billion yen (US$407.5 million), an 80.7 percent decrease from the previous year.

"Sales and operating income decreased mainly due to the worldwide decline in car production and substantial currency exchange loss," said Sadahiro Usui, managing officer of DENSO Corporation.

In Japan, sales totaled 1,815.9 billion yen (US$19.9 billion), a 10.2 percent decrease from the previous year. In addition to a sales decrease resulting from the slowdown in domestic car production and product exports mainly to North America and Europe, substantial currency exchange loss and rising raw materials costs led to operating income of 2.9 billion yen (US$31.5 million), a 98.2 percent decrease from the previous year.

In North, Central and South America, a decrease in sales mainly to Toyota and the three major American automakers, resulting from a drop in car production, led to a decrease in sales to 476.6 billion yen (US$5.2 billion), a 24.1 percent decrease from the previous year. Despite cost-reduction efforts, the lower production volumes led to operating income of 12.9 billion yen (US$141.4 million), a 60.4 percent decrease from the previous year.

In Europe, sales totaled 380.1 billion yen (US$4.2 billion), a 16.5 percent decrease from the previous year, mainly due to lower car production for Japanese auto manufacturers. Despite cost-reduction efforts, the decrease in production volume resulted in operating income of 7.7 billion yen (US$84.1 million), a 55.5 percent decrease from the previous year.

In Asia and Oceania, sales totaled 422.4 billion yen (US$4.6 billion), a 7.5 percent decrease from the previous year, and operating income totaled 57.0 billion yen (US$625.8 million), a 9.3 percent decrease from the previous year. In spite of an increase in car production volumes for Japanese auto manufacturers in ASEAN countries and China, substantial currency exchange loss resulted in decreases in both sales and operating income.

"Considering the severe business environment, along with the additional decrease in car production from January 2009, we have revised our full-year forecasts for the fiscal year ending March 31, 2009," said Usui.

Forecast for Fiscal Year Ending March 31, 2009

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.

(Notes)
U.S. dollar amounts have been translated, for convenience only, at the rate of 91.03 yen = US$1, the approximate exchange rate prevailing in the Tokyo Foreign Exchange Market on December 30, 2008. Billion is used in the American sense of one thousand million.