Net sales and operating income decrease for the first time since quarterly

                     results reporting began in FY2003



    KARIYA, Japan, July 30 /EMWNews/ -- DENSO Corporation today

announced global financial results for the first quarter ended June 30,

2008:



    -- Consolidated net sales totaled 983.9 billion yen (US$9.2 billion), a

slight decrease from the previous year.



    -- Consolidated operating income totaled 74.2 billion yen (US$696.8

million), a 20.6 percent decrease from the previous year.



    -- Consolidated net income totaled 51.7 billion yen (US$485.4 million),

a 23.3 percent decrease from the previous year.



    "Sales decreased mainly due to the decrease in car production in North

America and substantial currency exchange loss, despite increases in the

export of vehicles to emerging countries and car production for Japanese

auto manufacturers in ASEAN countries and China," said Sadahiro Usui,

managing officer of DENSO Corporation. "A decrease in sales and substantial

currency exchange loss led to a decrease in operating income."



    In Japan, sales totaled 650.7 billion yen (US$6.1 billion), a 0.5

percent increase from the previous year. Despite a sales increase led by

the growing export of vehicles and cost reduction efforts, substantial

currency exchange loss and rising raw materials costs led to operating

income of 31.4 billion yen (US$295.0 million), a 40.6 percent decrease from

the previous year.



    In North, Central and South America, a decrease in sales mainly to the

three major American automakers, resulting from the slowdown in car

production in North America, led to a decrease in sales to 190.9 billion

yen (US$1.8 billion), a 15.2 percent decrease from the previous year.

Operating income decreased to 10.8 billion yen (US$101.6 million), a

decrease of 23.7 percent from the previous year. The decline in production

volume and currency exchange loss resulted in the decrease in operating

income.



    In Europe, sales totaled 163.9 billion yen (US$1.5 billion), a 4.4

percent increase from the previous year. Operating income totaled 7.0

billion yen (US$65.6 million), a 7.3 percent increase from the previous

year. The sales expansion to Fiat and other automakers for air conditioning

systems contributed to the increase in sales and operating income.



    In Asia and Oceania, sales totaled 152.2 billion yen (US$1.4 billion),

a 3.3 percent increase from the previous year, due to continued growth in

car production volume for Japanese auto manufacturers in ASEAN countries

and China. Operating income totaled 23.1 billion yen (US$217.3 million), a

24.5 percent increase from the previous year. In addition to an increase in

production volume of air conditioning systems to Toyota, and diesel common

rail systems to Isuzu and Mitsubishi in Thailand, the stable expansion of

China operations resulted in an increase in operating income.



    "Considering the severe business environment, including the trend of

decreases in car production in North America and rising raw materials costs

in the second quarter, we have revised the half-year forecast for the

fiscal year ending March 31, 2009," said Usui. "We have also reflected the

changes in the half-year forecasts to our full-year forecasts."










    Forecast for First-Half Fiscal Year Ending September 30, 2008



                               Half-Year      Half-year     Changes from

                               Forecast       Forecast       Previous

                               (Original)     (Revised)     First-half



                               1,950.0        1,920.0       - 1.4 percent

    Net Sales                  billion yen    billion yen

                               (US $18.3      (US $18.0

                               billion)       billion)



    Income before income       140.0          129.4         - 27.5 percent

    taxes and minority         billion yen    billion yen

    interests                  (US $1.3       (US $1.2

                               billion)       billion)



    Net Income                 91.0           76.0

                               billion yen    billion yen   - 35.8 percent

                               (US $855.1     (US $714.2

                               million)       million)







    Forecast for Fiscal Year Ending March 31, 2009



                               FY Forecast    FY Forecast   Changes from

                               (Original)     (Revised)     Previous FY



    Net Sales                  4,030.0        4,000.0       - 0.6 percent

                               billion yen    billion yen

                               (US $37.9      (US $37.6

                               billion)       billion)



    Income before income       308.0          297.4         - 18.5 percent

    taxes and minority         billion yen    billion yen

    interests                  (US $2.9       (US $2.8

                               billion)       billion)



    Net Income                 200.0          185.0

                               billion yen    billion yen   - 24.3 percent

                               (US $1.9       (US $1.7

                               billion)       billion)



    DENSO Corporation, headquartered in Kariya, Aichi prefecture, Japan, is

a leading global supplier of advanced automotive technology, systems and

components. Worldwide, the company employs approximately 119,000 people in

32 countries and regions, including Japan. Consolidated global sales for

the fiscal year ended March 31, 2008 totaled US$40.2 billion. For more

information, go to http://www.globaldenso.com , or visit our media website at

http://www.densomediacenter.com .



    In the Americas, DENSO employs more than 17,000 people with

consolidated sales totaling US$8.3 billion for the fiscal year ended March

31, 2008. For more information, go to http://www.densomedia-na.com.



    (Notes)



    U.S. dollar amounts have been translated, for convenience only, at the

rate of 106.42 yen = US$1, the approximate exchange rate prevailing in the

Tokyo Foreign Exchange Market on June 30, 2008. Billion is used in the

American sense of one thousand million.