Tokyo - DENSO Corporation and FAWER AUTOMOTIVE PARTS COMPANY LTD. (hereafter called “FAWER?E of Changchun, Jilin Province, China, the largest auto parts production base owned by CHINA FAW GROUP CORPORATION (hereafter called “FAW?E, have signed an agreement to establish a joint venture for manufacturing car air conditioners. FAW Vice President Xu Jianyi and DENSO President and CEO Koichi Fukaya were among those attending today’s 10 a.m. (11 a.m. Japan time) signing ceremony in Changchun.

The new company, named TIANJIN FAWER DENSO AIR-CONDITIONER CO., LTD., will be established this month. The company will start production in February 2005 and supply its products to TIANJIN Toyota Motor Co,.Ltd. and other companies. The joint venture company will be DENSO’s ninth production base in China.

This new plant in Tianjin will help DENSO expand its business and improve the supply system in northern China in anticipation of increased auto production.

DENSO Corporation, headquartered in Kariya, Aichi prefecture, Japan, is a leading global supplier of advanced technology, systems and components. Its customers include all the world’s major carmakers. Worldwide, the company employs 90,000 people in 31 countries and regions, including Japan. Consolidated global sales for the fiscal year ended March 31, 2003 totaled US$19.4 billion. DENSO common stock is traded on the Tokyo, Osaka and Nagoya stock exchanges.

Currently, DENSO operates seven 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; 347 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; 422 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; 105 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; 107 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; 324 employees);