DENSO Files Complaint for the Rescission of the Supplementary Tax Assessment Order Based on the Application of the Anti-Tax Have

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Date: 08/08/2011

KARIYA (Japan) ―DENSO Corporation, on June 28, 2010, received a supplementary tax assessment order from the Nagoya Regional Taxation Bureau, pursuant to the provisions of the Special Taxation Act concerning tax havens. The supplementary income assessment was approximately 11.4 billion yen, and the additional tax payment was approximately 1.2 billion yen, including the local government taxes, covering DENSO’s Singapore subsidiary for the fiscal years ending March 2008 and 2009.

DENSO, dissatisfied with the supplementary tax assessment order, filed its objection with the tax authorities on Aug. 26, 2010. However, on Nov. 24, 2010, the Regional Commissioner dismissed the objection filed by the Company. Believing that the rationale of the tax authorities for the dismissal was unacceptable, DENSO filed a petition with the National Tax Tribunal on Dec. 22, 2010 seeking a review of the decision made by the Regional Commissioner.

The review proceedings by the National Tax Tribunal based on the Company’s petition are still in progress, but the Company is now in a position under law to seek a judicial remedy. Therefore, today, the Company filed a complaint with the Nagoya District Court for the rescission of the supplementary tax assessment order to seek a swift resolution.

DENSO will protest its validness in the court to reach an agreeable conclusion for the Company.   

DENSO Corporation, headquartered in Kariya, Aichi prefecture, Japan, is a leading global automotive supplier of advanced technology, systems and components in the areas of thermal, powertrain control, electric, electronics and information and safety. Its customers include all the world's major carmakers. Worldwide, the company has more than 200 subsidiaries and affiliates in 35 countries and regions (including Japan) and employs approximately 120,000 people. Consolidated global sales for the fiscal year ending March 31, 2011, totaled US$37.7 billion. Last fiscal year, DENSO spent 9.3 percent of its global consolidated sales on research and development. DENSO common stock is traded on the Tokyo and Nagoya stock exchanges. For more information, go towww.globaldenso.com, or visit our media website atwww.densomediacenter.com.

Contact:

Sadayoshi Yokoyama
+81 566-25-5594

sadayoshi_yokoyama@denso.co.jp

Goro Kanemasu
+81 566-25-5594

goro_kanemasu@denso.co.jp

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