Delphi Medical Systems Expands in the Respiratory Care Market with WearAir Licensing Agreement

December 12, 2005, TROY, Mich. Delphi Medical Systems, a subsidiary of Delphi Corp., recently signed an exclusive worldwide licensing agreement with Canada-based medical device company WearAir Oxygen, Inc.

WearAir is a small company with a mission to improve respiratory patients’ quality of life through an innovative proprietary oxygen concentration technology. The technology licensing agreement includes the patents and patent applications, the rights to manufacture and distribute oxygen concentrators based on this intellectual property, and the ability to use the underlying technology for OEMs and distributors.

Delphi Medical Systems anticipates using these technologies for its OEM customers and distributors for portable oxygen concentrators in the U.S., Canada and in European markets in 2006.

Ideal for use in ambulatory patients for homecare or in alternate site settings, the oxygen concentrators are being designed to be high-performance systems and easy to use for the patient. More information on the specifications will be announced during the first half of 2006.

“We’re excited about this agreement and the WearAir technologies, which strengthen Delphi Medical Systems’ portfolio in respiratory therapy,” said Christophe Sevrain, managing director, Delphi Medical Systems. “We will continue to develop our growth through strategic alliances with OEMS and distributors to try and make Delphi Medical Systems’ the leading provider of technologies and products in the respiratory care market segment.”

“We welcome this opportunity to work with Delphi Medical Systems,” said Guy Gaiser, chairman and CEO, WearAir Oxygen, Inc. “With this licensing agreement, we hope to continue to provide advanced technologies to fill the needs of respiratory patients around the world,” said Gaiser. “We look forward to leveraging Delphi’s strengths in design, cost, manufacturing and reliability.”

“Respiratory care is a rapidly growing segment of the medical community and we are becoming an important supply source of technologies, products, and manufacturing know-how in these markets,” said Sevrain.

Along with focus on the respiratory segment, Delphi Medical Systems also specializes in infusion, dialysis, in-vitro diagnostics, power mobility and vital signs monitoring.

For more information on WearAir, please visit its website at: www.WearAir.com.

For more information on Delphi Medical, please visit www.DelphiMedical.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) 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 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; the ability of the Company to attract, motivate and/or retain key executives and associates; and the ability of the Company to attract and retain customers. Other risk factors are listed from time to time in the Company’s SEC 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 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 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. No assurance can be given as to what values, if any, will be ascribed in the bankruptcy proceedings to each of these constituencies. Accordingly, the Company urges that the appropriate caution be exercised with respect to existing and future investments in any of these liabilities and/or securities.

Contact Information

Mary McCahon

Delphi Medical Systems

Delphi Corp.

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