SOURCE: Delphi Corporation

April 12, 2007 09:00 ET

E/E Architecture Puts Delphi on Eco-Friendly Fast Track

Less Material, Improved Efficiencies, Recyclability Characterize Delphi's E/E Architectures

WARREN, OH -- (MARKET WIRE) -- April 12, 2007 -- Reduce. Reuse. Recycle. The familiar mantra conjures up visions of beverage cans, plastic bottles and newspapers filling a recycling bin, not automobiles cruising past a filling station or being disassembled and reclaimed. But Delphi Corporation's (PINKSHEETS: DPHIQ) electrical/electronic (E/E) architecture may change that.

E/E architecture has the potential to move the auto industry -- production, operation and reclaiming spent vehicles -- onto the earth-friendly fast track.

Developing an E/E architecture is the rigorous up-front design work that involves defining the electrical and electronic system, starting with the physical and functional partitioning of the various subsystems and components -- the automobile's central nervous system. It determines how many electronic controllers there will be and where they will be placed, what materials will be used, how much wiring and cable will be used, and how various components will be positioned. Well-designed E/E architectures provide the most efficient automotive central nervous systems possible.

At Delphi, customers work with our engineers to develop E/E architectures uniquely suited to their specific needs while reducing production costs, weight and mass, and improving reliability and ease of assembly.

"Capitalizing on Delphi's expertise as master architects in designing and producing E/E architectures typically results in a 10 to 30 percent improvement in each of these areas," reports Jim Spencer, president of Delphi - E/EA. "It also results in greener, more eco-friendly vehicles that require smaller amounts of raw materials to produce, are more fuel-efficient, and are easier to reclaim once they are no longer useful."

Automobiles are amazingly complex, Spencer continues. "Most have more than one mile of wiring, a couple dozen computer modules and multiple serial data links to support an ever-increasing array of passenger safety, comfort and entertainment features. It is at this level -- the architectural level -- where you can make the greatest impact and experience the greatest gains."

The electrical system is a natural integrator, touching all areas of the vehicle. E/E architecture can optimize packaging and routing of the wiring harness so that it fits in smaller or better places. In some instances it can eliminate the need for the conduit or harness covering that wiring may be packaged in, cutting costs and labor required to produce the system as well as making it easier to separate materials and recycle components at the end of the vehicle's life.

In Europe, governments mandate that OEMs recycle end-of-life vehicles. In the United Kingdom alone 2.2 million vehicles come to the end of their lives each year. By weight, up to 80 percent of each of those automobiles is recycled. E/E architecture could make recycling greater percentages of those vehicles easier by eliminating some of the extraneous materials that make separating materials difficult.

Delphi's E/E architecture also reduces the amount of hazardous materials, such as lead, used in the manufacture of new vehicles by reducing or eliminating the use of tin-lead solders. It reduces the use of raw materials, such as copper, by using smaller-gauge wiring without compromising physical break strength. And, it incorporates products such as Delphi's IVT Battery Sensor, which helps extend the life of the battery and improve fuel efficiency, recyclable halogen-free cable -- an alternative to PVC -- and Delphi molded components produced at facilities where 100 percent of scrap plastic is recycled.

"Delphi's E/E architecture improves the vehicle's capabilities, enabling OEMs to provide superior products that have less impact on the environment. That's good for everybody -- manufacturers and consumers," Spencer says.

For more information about Delphi Corp. (PINKSHEETS: DPHIQ), visit www.delphi.com

FORWARD-LOOKING STATEMENT

This press release, as well as other statements made by Delphi may contain forward-looking statements within the "safe harbor" provisions of the Private Securities Litigation Reform Act of 1995, 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. 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 ("DIP") financing facility; the company's ability to obtain court approval with respect to motions in the chapter 11 proceeding prosecuted by it from time to time; the ability of the company to develop, prosecute, confirm and consummate one or more plans of reorganization with respect to the Chapter 11 cases; 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 execute its business plans, including the transformation plan described in the Company's March 31, 2006 press release, and to do so in a timely fashion; 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; and the ability of the company to attract and retain customers. Other risk factors are listed from time to time in the company's United States Securities and Exchange Commission reports, including, but not limited to the Annual Report on Form 10-K for the year ended December 31, 2004, and its most recent quarterly report on Form 10-Q for the quarter ended September 30, 2005, and current reports on Form 8-K. 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 pre-petition liabilities, common stock and/or other equity securities. Additionally, no assurance can be given as to what values, if any, will be ascribed in the bankruptcy proceedings to each of these constituencies. A plan of reorganization could result in holders of Delphi's common stock receiving no distribution on account of their interest and cancellation of their interests. Under certain conditions specified in the Bankruptcy Code, a plan of reorganization may be confirmed notwithstanding its rejection by an impaired class of creditors or equity holders and notwithstanding the fact that equity holders do not receive or retain property on account of their equity interests under the plan. In light of the foregoing and as stated in its October 8, 2005, press release announcing the filing of its Chapter 11 reorganization cases, the company considers the value of the common stock to be highly speculative and cautions equity holders that the stock may ultimately be determined to have no value. Accordingly, the company urges that appropriate caution be exercised with respect to existing and future investments in Delphi's common stock or other equity interests or any claims relating to pre-petition liabilities.

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