Delphi Connects Light Armored Vehicle Communications Systems for the U.S. Marine Corps

Delphi helps upgrade military equipment to diagnose problems; enable mechanics to make repairs more quickly.

February 14, 2006, TROY, Mich., -- A suite of Delphi’s products is preparing to enhance the way military vehicles and their electronic systems communicate. Teams of Delphi engineers are installing customized electronic sensing and monitoring systems onto a test fleet of Light Armored Vehicles (LAVs) used by the United States Marine Corps.

While this kind of capability is typical in new cars built today, it is not the case when it comes to this 14-ton military vehicle. The LAV upgrade provides systems that monitor, record and communicate state-of-health and diagnostics information. Access to this information allows users and mechanics to more accurately and quickly determine what is wrong and how to fix it -- which could mean major time savings for Marines.

“We are adapting and modifying what we know about integrated electronic systems in the automotive industry, in order to advance the LAV for the military,” said Ben Johnson, director of product management, Delphi Product & Service Solutions. “We are introducing leading-edge technology into a rigorous military environment, a world of highly advanced weapons systems with the need for integration and global communications.”

The customized Delphi systems are currently being installed on 10 LAVs to verify their viability in this highly rugged military vehicle. Each LAV will include a Control Module, a network of on-board sensors, associated wiring harnesses and built-in diagnostics. This system will feed data to a customized version of Delphi’s DS800 Diagnostic System to help determine where a problem lies within the system’s electronic architecture.

“Our ability to provide an ’end-to-end’ option -- from acquiring the data to resolving the problem -- is what Delphi wants to provide to the military,” said Johnson. “We believe when these first 10 LAVs are fully equipped, that the results will be so beneficial to the military, that the Marines will ask Delphi to customize the electrical systems of their entire fleet of 700 around the world.”

With the cost of each LAV being about $1 million, Delphi creates an opportunity for cost savings for the military. Specifically, the upgrades will increase the up-time readiness and extend the life of the platform instead of requiring the entire LAV to be replaced.

The National Center for Manufacturing Sciences (NCMS) is managing this collaboration between Delphi and the Marines, as part of its initiative of Reliability Centered Maintenance (RCM).

“Delphi has been an essential teammate in this effort from its early inception. Having worked closely with the Delphi team on the LAV Sense & Respond project, they have repeatedly proved their worth as a trusted collaborator, and as such have shown an impressive grasp of our intended direction and future vision for the LAV,” said Mark Gerhard, U.S. Marine Corps logistic management specialist for the program manager’s office, Light Armored Vehicles. “With fastidious attention to detail and the unflagging perseverance of the engineers and integrators at Delphi, the USMC Light Armored Vehicle is perched to regain its claim to supremacy on the battlefield in the reconnaissance environment. The real world mission impact of what Delphi is doing for the Marines is tremendous, and the cost savings involved with this should put a smile on every U.S. taxpayer’s face.”

By using a satellite interface, information from the LAV can be conveyed remotely to the fleet manager. System Engineers can compile the data collected from multiple LAVs and analyze and correlate data acquired over time across the entire fleet, which may help in identifying ongoing problems on the platform. With the extensive detail involved, it not only allows diagnosis of a current problem, but may eventually lead to identifying a potential problem before it becomes more serious.

The customized Delphi systems will continue to be installed and tested throughout 2006. With the successful completion of this project, the military will evaluate the possibility of equipping the entire fleet of 700 LAVs with Delphi technology.

For more information about Delphi (OTC: DPHIQ), visit http://www.delphi.com.

For more information about NCMS visit www.ncms.org.

Forward-Looking Statements
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 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; 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 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. As described in the Company’s public statements in response to the request submitted to the United States Trustee for the appointment of a statutory equity committee, holders of Delphi’s common stock and other equity interests (such as options) should assume that they will not receive value as part of a plan of reorganization. In addition, 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 prepetition liabilities.

Contact Information

Beth Walker

Delphi Corp.

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