Delphi’s Battery Disconnect Safety Device with New Engine Restart Option Further Enhances Passenger Safety

Technology prevents fires by pyrotechnically disconnecting vehicle batteries from unfused cables in case a short-circuit results from a collision

August 09, 2006, TROY, Mich. — Delphi Corporation’s Battery Disconnect Safety Device (BDSD) is now available with a safe engine restart option that allows drivers to restart their vehicles after a minor collision if there are no electrical hazards. This is an industry first and further enhances passenger safety by allowing the driver to move a vehicle off the road to prevent the occurrence of a second collision.

Automobile crashes resulting in vehicle fires are 10 times as deadly as those not involving fire, according to insurance company statistics. Delphi’s BDSD could prevent a portion of those fires.

Triggered by the electric signal of the airbag control system, Delphi’s BDSD pyrotechnically disconnects the vehicle battery from unfused cables in case a short-circuit occurs.

In most vehicles, the cable connecting the battery with the starter and alternator — the largest electrical cable in an automobile — is completely unprotected. High currents that flow through this cable while starting the vehicle prohibit the use of fuses. Because this cable is unprotected, current that continues to flow through the cable following a vehicle crash poses the threat of high-temperature short circuits and arcing, which could lead to a fire. Delphi’s BDSD severs the connection in the very early stages of a crash. Based on proven airbag technology, Delphi’s BDSD is also more reliable, economical, safer and easier to install than similar products competitors have on the market, according to Claus-Werner Deutschmann, product group manager, energetic systems at Delphi.

Comprised of a small number of parts, all enclosed in a high-strength fiber-reinforced plastic housing, Delphi’s BDSD costs 20 percent less than competitors’ products.

There are no moving external parts and, due to the built-in electrostatic discharge protection, it is unlikely that an installer could trigger deployment of the pyrotechnic device. Even if deployment occurs during installation, it should not cause injury or damage, Deutschmann says, because the action all takes place within the closed housing and it is tested to be hand-safe.

This also makes replacement of an activated BDSD quick and easy. In most instances, two bolts hold it in place. While the BDSD disconnects power from the vehicle battery to unfused cables, it does not sever power to the vehicle’s safety functions such as door locks, hazard lights, interior lighting and automatic emergency call systems.

Employing devices to disconnect vehicle batteries during collisions has become increasingly popular in Europe and, to eliminate the risk of product liability lawsuits, some of these automakers have incorporated the feature in vehicles exported to the United States. Delphi’s BDSD meets all common specifications in the automotive industry, is free of heavy metals and is available for immediate production. For more information about Delphi Corp. (OTC: 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 harborâ€� 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 (“DIPâ€�) 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.

Contact Information

Barb Barkley

Delphi Corporation

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