Tokyo - DENSO Corporation today announced that it had spun off its sales division from its manufacturing and sales company in Thailand, DENSO (Thailand) CO., LTD. (DNTH), to establish a new sales company. DENSO International (Thailand) Co., Ltd. (DITH) sales will begin in the Thai domestic market in April 2003.

Established in December 2002, the new company began with an initial capital investment of approximately 280 million yen (US$ 2.3 million). Sales of approximately 53 billion yen (US$4.4 billion) and 270 employees are projected for fiscal year 2005.

"Currently, DENSO operates several manufacturing companies that produce automotive products such as electric components, car air conditioner and common rail systems in Thailand. We hope by integrating the sales operations within the new company we will enhance business activity in Thailand. In addition, in case that we establish new manufacturing companies in Thailand in the future, the new company is responsible for their sales activity. " said Hiroshi Uchiyama, senior managing director of DENSO Corporation and in charge of DENSO Sales Group.

Uchiyama continued, "At the new company, we also plan to centralize the planning of some administrative functions including human resources, accounting, information system affairs, and general administration. The efficiency of those tasks will be improved through this centralization process."

According to Uchiyama, the number of cars produced in Thailand has rapidly increased from 160,000 units in 1998, shortly after the Asian economic crisis, to 460,000 units in 2001. Thailand is expected to further expand its vehicle market to become the car industry hub for ASEAN.

Currently, DENSO operates five production companies in Thailand.

Contact: Sadayoshi Yokoyama +81 566-25-5594 sadayoshi_yokoyama@denso.co.jp Goro Kanemasu +81 566-25-5594 goro_kanemasu@denso.co.jp •  DENSO (Thailand) CO., LTD., Samutprakarn, Thailand (business lines: manufacture, import, and sale of electrical automotive equipment, air conditioners, magnetos, and spark plug; 51.3 percent DIAS's1 ownership; 1,814 employees), •  Siam DENSO Manufacturing CO., LTD., Samutprakarn, Thailand (business lines: manufacture and sale of injection pumps for common rail systems; 100 percent DIAS's1 ownership; 47 employees), •  ANDEN (Thailand) CO., LTD., Chonburi, Thailand (business lines: manufacture and sale of relays; 100 percent ANDEN's ownership; 23 employees), •  TOYODABO Filtration System (Thailand) CO., LTD Rayong, Thailand (business lines: manufacture and sale of oil filters; 40 percent DENSO's ownership),