SOURCE: Delphi Corporation

June 24, 2008 08:00 ET

Delphi Awarded Tier 4 Fuel Injection Equipment Business With Construction Equipment Manufacturer JCB

Delphi Will Supply Its Multec™ Medium Duty Common Rail

PARIS--(Marketwire - June 24, 2008) - Delphi Corp. (PINKSHEETS: DPHIQ) announced today that it has been chosen to supply its Multec™ Medium Duty Common Rail (MDCR) for the next generation of Tier 4 diesel engines to JCB Power Systems -- part of J C Bamford Excavators, the world's third largest producer of construction equipment by volume. The seven-year contract commences in 2011.

The world market for medium-duty diesel engines has very specific requirements demanding high levels of durability, efficiency and robustness. Projections show that by 2015, 100 percent of the on-highway and 49 percent of off-highway vehicles in the medium-duty sector will use a Common Rail Fuel injection system.

The introduction of more stringent emission regulations drives the requirement in this sector for a high-pressure, fully-flexible, electronically-controlled fuel injection system. To meet the European medium-duty market emission legislation requirements, Delphi has developed a dedicated fuel injection system aimed at meeting the successive steps in emissions legislation.

The Common Rail injection system addresses these demands with flexibility of fuel delivery, injection timing, injection pressure, and rate of injection through a multiple injection strategy. In addition, the engine management system will be required to control the air and exhaust gas recirculation (EGR) systems along with a host of actuators while monitoring feedback from electronic sensors. The future will also bring a variety of exhaust after-treatment systems that will be managed by the engine control module.

Delphi's Multec MDCR

Delphi's Multec MDCR is a modular diesel fuel injection system developed to meet the demanding requirements of medium-duty truck and off-highway engine applications. At the heart of the system is a fast servo-solenoid injector designed to optimise fuel rate, spray shape and accuracy. The highly-innovative system provides small injection quantities via a compact, easily packaged unit and uses closed-loop strategies to deliver precise fuel quantities over the life of the engine.

Taking advantage of the following attributes, Delphi's Multec MDCR system features improved injection rate, increased durability and design flexibility to match applications variety.

--  Superior value servo injector
    The injector is based on a unique design with balanced servo valve
    technology. The small size of this actuator allows it to be in close
    proximity to the needle providing extremely fast actuation and precise
    metering. The performance of the technology used provides proven
    durability of the solenoid actuation principle. In addition, the
    compact solenoid injector requires less energy than any other common
    rail injector and operates at 12V allowing for simpler, reliable and
    cost-effective electronic design.

--  Leading control strategies
    Delphi has developed strategies for fuel injection control that are
    important for achieving the Medium Duty requirements. Among these are
    Improved Individual Injector Characterization (I3C) and the Extended
    Accelerometer Pilot Control (APC+). These strategies translate into a
    well-defined injection quantity, low combustion noise and emissions.

--  Flexible modular next generation pump
    With the design of a complete new pump family, Delphi's offering is not
    only robust and durable for long life running at high pressure but also
    flexible enough to fit a broad range of engine applications.

--  Extremely efficient system
    Thanks to its low back-leak design with reduced parasitic losses, the
    system offers one of the best total system packages for Delphi's
    customers.

Overall, these benefits together translate into a robust and durable system. In a cost-sensitive market, the low maintenance and low fuel consumption of the system help reduce vehicle operation costs.

Delphi's supplying Multec MDCR to JCB

JCB's decision to implement Delphi's Multec MDCR will allow the construction equipment manufacturer to meet stringent Tier 4 legislation. In response to the new legislation, Delphi has further developed its product range to assist customers in meeting the challenges. Among these improvements are the new DFI-2.5 servo-solenoid injector which offers a significantly increased rate of injection and a new model-based control strategy to better manage the air handling and EGR systems. Model-based control strategies also reduce overall system development time. Delphi's new system will be developed in Europe -- principally in the technical centers in Gillingham, UK, and Blois, France -- with electronics support from Delphi's Bascharage, Luxembourg, operation.

"With their record-setting growth in 2007, JCB is poised for significant success in both the near- and long-term," said Steve Gregory, Delphi's medium duty business director. "Delphi is proud to continue our partnership with JCB and continue their growth in the medium-duty off-highway market. Moreover, JCB can be confident that Delphi, with its worldwide service and support network, is positioned to support JCB's global expansion plans in every region of the world."

Delphi currently supplies fuel injection systems to JCB, including rotary pump systems on both Tier 2 and Tier 3 engines and common rail systems on the new Tier 3 Dieselmax engines. The systems include the usual "wet side" and engine control products as well as filtration solutions and several engine sensors.

ABOUT JCB

JCB Power Systems supplies engines from its Foston, Derbyshire, base to various JCB machine Business Units around the world, as well as an increasing number of OEM customers. The Business Units, in turn, fit the engines to a wide product range of construction machines. Engines are mainly destined for the backhoe loaders, wheeled-loading shovels and telescopic material handling products that comprise the backbone of the JCB product line. For more information on JCB, visit www.jcb.com, www.jcbpowersystems.com

ABOUT DELPHI POWERTRAIN SYSTEMS

Delphi's powertrain technologies provide robust solutions to complex challenges, helping its customers develop vehicles that offer outstanding performance, refinement and emissions compliance. They include multi point injection and direct injection gasoline systems, Common Rail and rotary pump diesel systems in a range of capacities and for heavy duty diesel applications, Electronic Unit Injectors and Electronic Unit Pumps. They are complemented by innovative fuel handling, evaporative emissions, transmission control, valve train and after-treatment solutions. For more information on Delphi, visit www.delphi.com.

FORWARD-LOOKING STATEMENTS

This press release 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 and its advance agreement with GM, to obtain an extension of term or other amendments as necessary to maintain access to such facility and advance agreement; 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.

Contact Information