Delphi Grundig Expands Business Activities with "Safety & Security" Products

New Bluetooth hands-free set HFK200 paves the way.

August 30, 2005

Troy, Mich. -- Delphi Grundig, created from the Delphi Corp. (NYSE: DPH) acquisition of Grundig Car Intermedia System in 2003, is expanding its business activities and in the future will be enhancing its existing portfolio with products from the “Safety & Security” sector. The former Delphi Product & Service Solutions division in Europe will therefore be seamlessly incorporated into the Delphi Grundig brand and its sales activities.

The core products of Delphi Grundig “Safety & Security” will in the future include safety systems, parking aids and hands-free sets.

“We are pleased to be able to add new products to the Delphi Grundig brand in order to strengthen and extend our automotive portfolio on a long term basis. This will considerably enhance our expertise as a strong partner for the automotive industry and the trade sector,” said Michael Boe, European Business Line Director Consumer Electronics, as he described the future outlook.

Delphi Grundig becomes wireless - the new Bluetooth hands-free set HFK200
Over the past few years Bluetooth has revolutionised wireless communication. Thanks to this technology, linking up computers, mobile phones, PDAs and smart phones has become mere child’s play. Bluetooth is playing an increasingly important role, especially in the automotive sector. Delphi Grundig has utilised these technologies and, with the Bluetooth hands-free set HFK200, is presenting its first product in the new “Safety & Security” sector.

A Bluetooth-compatible mobile phone can therefore safely stay in the bag, in the glove compartment or in the boot of the car when travelling. The HFK200 mainly comprises three components - a black box, an extremely small microphone and a separate control button which can be positioned anywhere within the driver’s reach. The Installation is extremely easy.

The Delphi Grundig HFK200 is simply connected to an existing car radio and uses the car’s sound system to provide better acoustics. The real benefits of the Delphi Grundig HFK200 become apparent as soon as it is put into use. Telephone calls are answered automatically and are transmitted with extreme clarity via the sound system’s loudspeakers. The car radio is muted when a call is received and it is reset to the original volume after the call has finished without the driver having to take his/ her hands off the steering wheel. The voice recognition function can be used to dial numbers stored in the mobile phone using your own voice.

The control button facilitates additional functions, which can be positioned virtually anywhere. Using this button, the call volume can be controlled, the mobile phone voice control function can be activated and deactivated, and the mailbox can be managed. In addition, key words for simplified number dialling and the operating language of the new Delphi Grundig HFK200 can also be configured.

The new Delphi Grundig Bluetooth hands-free set HFK200 helps enable safe driving, while keeping you connected and is available now at speciality stores in Europe.

Further information can be found on the internet under www.delphi.com or www.delphigrundig.com.

Forward looking statement
All statements contained or incorporated in this press release which address operating performance, events or developments that we expect or anticipate may occur in the future (including statements relating to future sales, cash flow or earnings expectations, savings expected as a result of our global restructurings or other initiatives, portfolio restructuring plans, volume growth, awarded sales contracts and customer diversification or statements expressing general optimism about future operating results or the impact of the ongoing investigations of the Securities and Exchange Commission and Department of Justice on us) are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These statements are made on the basis of management’s current views and assumptions with respect to future events. Important factors, risks and uncertainties which may cause actual results to differ from those expressed in our forward-looking statements are discussed in detail in our filings with the Securities and Exchange Commission, including our annual report on Form 10-K for the year ended December 31, 2004. In particular, the achievement of projected levels of revenue, earnings, cash flow and debt levels will depend on our ability to execute our portfolio and global restructuring plans in a manner which satisfactorily addresses any resultant antitrust or labor issues and customer concerns, any contingent liabilities related to divestitures or integration costs associated with acquisitions, and other matters; our continued ability to diversify our customer base and still maintain existing GM business; the continued protection and exploitation of our intellectual property to develop new products and enter new markets; and our ability to capture expected benefits of our cost reduction initiatives so as to maintain flexibility to respond to adverse and cyclical changes in general economic conditions and in the automotive industry in each market we operate, including customer cost reduction initiatives, potential increases in warranty and raw material costs, pension contributions, healthcare costs, disruptions in the labor, commodities or transportation markets caused by terrorism or war and other changes in the political and regulatory environments where we do business. Delphi does not intend or assume any obligation to update any of these forward-looking statements.

Contact Information

Carsten Titt (Europe)

Media Contact

Delphi

Contact via E-mail