SOURCE: Delphi Corporation

June 05, 2008 14:00 ET

Delphi Awarded Further Government Funding for Solid Oxide Fuel Cell Development

Contract Builds Upon Already-Successful Department of Energy Efforts

ROCHESTER, NY--(Marketwire - June 5, 2008) - Delphi Corp. (PINKSHEETS: DPHIQ) is part of a team led by UTC Power, a United Technologies Corp. (NYSE: UTX) company, that has been selected to develop technology for the U.S. Department of Energy's (DOE) Solid State Energy Conversion Alliance (SECA) Program. The project -- which includes $22 million in funding over two years -- focuses on enhancing energy security through zero-emission applications; it specifically targets solid oxide fuel cell (SOFC) development. United Technologies Research Center is also part of the team.

By converting chemical energy in conventional fuels directly into useful electrical power without combustion, a SOFC operates quietly and at a higher efficiency level than traditional internal combustion engines. In fact, Delphi's SOFC emits nearly zero emissions under any operating conditions. Energy sources that support Delphi's SOFC auxiliary power units include natural gas, diesel, bio-diesel, propane, gasoline, coal-derived fuel and military logistics fuel.

Delphi has been working with the DOE under the SECA program since 2002. During that time, Delphi made significant advances in SOFC's power density and cost reduction. As part of that initial contract, Delphi and UTC Power will supply a 5kw demonstration system with larger cells and stacks by the end of 2008. With this most recent award, the team will:

--  Design a sub-scale, proof-of-concept system
--  Develop manufacturing capabilities
--  Resolve issues related to cost, performance and manufacturability of
    larger-scale fuel cells
--  Fabricate and test a scaled stack suitable for use in a full-scale
    system
    

"At Delphi, we're proud to be counted on by SECA for this important project and again be recognized as a leader in solid oxide fuel cell development," said Mary Gustanski, Delphi Powertrain Systems director of Engineering, Customer Satisfaction, Program Management and Operations. "We look forward to working with UTC Power and leveraging their expertise in larger commercial and industrial applications."

ABOUT DELPHI

Delphi is a leading global supplier of mobile electronics and transportation systems, including powertrain, safety, steering, thermal, and controls & security systems, electrical/electronic architecture, and in-car entertainment technologies. Engineered to meet and exceed the rigorous standards of the automotive industry, Delphi technology is also found in computing, communications, consumer electronics, energy and medical applications. Headquartered in Troy, Mich., Delphi has approximately 163,500 employees and operates 152 wholly owned manufacturing sites in 34 countries with sales of $22.3 billion in 2007. Delphi can be found on the Internet at www.delphi.com.

ABOUT SECA

SECA was established by DOE's Office of Fossil Energy in 2000 to research and develop low-cost, modular, fuel-flexible SOFC systems by 2010. In early 2005, the SECA program was accelerated to deliver megawatt-class fuel cell systems in response to the emerging national need for low-cot carbon capture technologies along with the more efficient and cost-effective use of fuels abundantly available in the United States and the need to address reduced water usage in power plants.

ABOUT UTC POWER

UTC Power, a United Technologies Corp. (NYSE: UTX) company, is a full-service provider of environmentally responsible power solutions. With 50 years of experience, UTC Power is the world leader in developing and producing fuel cells for on-site power, transportation, space and defense applications, as well as a leader in innovative, renewable energy solutions and combined cooling, heating and power solutions for the distributed energy market.

FORWARD LOOKING STATEMENTS

This press release, including the exhibits being furnished as part of this report, as well as other statements made by Delphi may contain forward-looking statements that reflect, when made, the Company's current views with respect to current events and financial performance. Such forward-looking statements are and will be, as the case may be, subject to many risks, uncertainties and factors relating to the Company's operations and business environment which may cause the actual results of the Company to be materially different from any future results, express or implied, by such forward-looking statements. In some cases, you can identify these statements by forward-looking words such as "may," "might," "will," "should," "expects," "plans," "anticipates," "believes," "estimates," "predicts," "potential" or "continue," the negative of these terms and other comparable terminology. Factors that could cause actual results to differ materially from these forward-looking statements include, but are not limited to, the following: the ability of the Company to continue as a going concern; the ability of the Company to operate pursuant to the terms of the debtor-in-possession financing facility, to obtain an extension of term or other amendments as necessary to maintain access to such facility and to secure the anticipated advances from GM in order to obtain any such extension or amendment; the Company's ability to obtain Court approval with respect to motions in the chapter 11 cases prosecuted by it from time to time; the ability of the Company to consummate its amended plan of reorganization which was confirmed by the Court on January 25, 2008 or any other subsequently confirmed plan of reorganization; risks associated with third parties seeking and obtaining Court approval to terminate or shorten the exclusivity period for the Company to propose and confirm one or more plans of reorganization, for the appointment of a chapter 11 trustee or to convert the cases to chapter 7 cases; the ability of the Company to obtain and maintain normal terms with vendors and service providers; the Company's ability to maintain contracts that are critical to its operations; the potential adverse impact of the chapter 11 cases on the Company's liquidity or results of operations; the ability of the Company to fund and execute its business plan (including the transformation plan described in Item 1. Business "Plan of Reorganization and Transformation Plan" of the Annual Report on Form 10-K for the year ended December 31, 2007 filed with the SEC) and to do so in a timely manner; the ability of the Company to attract, motivate and/or retain key executives and associates; the ability of the Company to avoid or continue to operate during a strike, or partial work stoppage or slow down by any of its unionized employees or those of its principal customers and the ability of the Company to attract and retain customers. Additional factors that could affect future results are identified in the Annual Report on Form 10-K for the year ended December 31, 2007 filed with the SEC, including the risk factors in Part I. Item 1A. Risk Factors, contained therein. Delphi disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events and/or otherwise. Similarly, these and other factors, including the terms of any reorganization plan ultimately confirmed, can affect the value of the Company's various prepetition liabilities, common stock and/or other equity securities.

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