Delphi Plans Opening New Diesel Plant in Romania

IASI, Romania — In a move to service its growing customer base, Delphi Corporation (PINKSHEETS: DPHIQ), one of the world’s largest automotive suppliers, has officially announced it is planning to open a new diesel engine management system (EMS) components plant. The facility, to be operated by Delphi Powertrain Systems division, is scheduled to receive equipment in late 2007. The site is in Iasi, in the north-east of Romania. The initial location is a pre-existing industrial site which will begin the first phase of manufacturing operations before year-end.

Delphi has well-developed expansion plans that call for several additional phases of new investment to launch products specified in already awarded new business contracts. Each of these future multi-million dollar phases of investment are for new building, machinery and equipment and will support attainment of long-range planned capacity in Iasi. Subject to Delphi’s board of directors supporting future phases of investment, Delphi’s total presence in Iasi, could reach over 1,000 workers and could accumulate to exceed 100 million euro investment.

“We have recently won a large number of new programmes and new customers, especially for diesel engine management systems that are Euro V compatible and we need to support our customers who are rapidly expanding in Central and Eastern Europe. We require additional plant capacity to support our continued growth” said Jose Avila, general manager for Delphi Diesel Systems. “Delphi is a key player in the global diesel market and this new site will strengthen our position by providing an efficient new manufacturing base nearer to our customers.”

With this planned site, Delphi will strengthen its extensive global diesel manufacturing footprint. The group operates 13 sites dedicated to the diesel engine management system activity globally and has a presence in Brazil, Korea, India, Turkey, Mexico, France, Spain and the United Kingdom and now intends to add Romania to the list of global locations.

As a dedicated diesel site, the Iasi plant would produce high-precision diesel fuel injection components, mainly pumps and injectors for common rail systems and will serve various customers around the world.

Recruitment to fill jobs at the initial facility has already started. According to Michel Stanciu, director of manufacturing strategy & engineering for Delphi Diesel Systems, workers at the plant will receive important training. “Iasi has a deep pool of well-qualified employees from which we will select,” said Stanciu. “To augment those talents, each new employee will go through an extensive training programme.” Stanciu, a native Romanian, was integral in bringing the plant to Romania and expects mutual benefits to be realized by the company and the country through the localization of the plant. “We look forward to a continued strong partnership with government officials, economic develop agencies and local educational institutions to finalize our long-range investment and capacity expansion plans,” said Stanciu.

Precision Required from Diesel Plants

The manufacturing of diesel fuel injection systems requires an extremely skilled workforce. The common rail system working at a pressure up to 1800 bar requires a high-precision machining down to a few microns and the assembly operation needs to be done in a very strictly controlled clean room.

Delphi’s Multec Common Rail System

The Delphi Multec Common Rail Diesel Fuel Injection System is widely used throughout the industry. It is a high-value, cost-competitive servo-hydraulic system that is not only high performance but simple and robust. In addition, Delphi’s Multec Common Rail injection is easily packaged, and takes up less space than competing systems. Many of the world’s top automakers have chosen this Delphi system over all others. Customers include familiar names such as: Ford PAG, Hyundai, Kia, PSA Peugeot Citroën, Renault-Nissan, Ssangyong, Suzuki.

Strong expertise

Delphi engineers have extraordinary expertise in air, fuel and exhaust management systems, because they work with all these technologies in the Delphi portfolio. Delphi engineers can easily orchestrate them to work in optimum harmony. This flexible, balanced expertise allows them to design the best fuel injection system solutions to meet car markers specialized needs.

Delphi Powertrain Systems

Delphi’s powertrain technologies provide robust solutions to complex challenges, helping its customers develop vehicles that offer outstanding performance, refinement and emissions. They include multi point injection and direct injection gasoline systems; common rail, rotary pump diesel systems in a range of capacities and, for heavy duty diesel applications, Electronic Unit Injectors and Electronic Unit Pumps. All are complemented by innovative fuel handling, evaporative emissions, engine and transmission electronic controls, valve train, and after-treatment solutions.

For more information about Delphi Corporation (OTC: DPHIQ) and its subsidiaries, visit Delphi’s media room at www.delphi.com/media.

FORWARD-LOOKING STATEMENT

This press release, as well as other statements made by Delphi may contain forward-looking statements 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. In some cases, you can identify these statements by forward-looking words such as “may,” “might,” “will,” “should,” “expects,” “plans,” “anticipates,” “believes,” “estimates,” “predicts,” “potential” or “continue,” the negative of these terms and other comparable terminology. 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 financing facility; the terms of any reorganization plan ultimately confirmed; the Company’s ability to obtain Court approval with respect to motions in the chapter 11 cases 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; the Company’s ability to satisfy the terms and conditions of the Equity Purchase and Commitment Agreement (including the Company’s ability to achieve consensual agreements with GM and its U.S. labor unions on a timely basis that are acceptable to the Plan Investors in their sole discretion); the Company’s ability to satisfy the terms and conditions of the Plan Framework Support Agreement; 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 (including the transformation plan described in Item 1. Business “Potential Divestitures, Consolidations and Wind-Downs” of the Annual Report on Form 10-K for the year ended December 31, 2006 filed with the SEC) and to do so in a timely manner; 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. Additional factors that could affect future results are identified in the Company’s Annual Report on Form 10-K for the year ended December 31, 2006, including the risk factors in Part I. Item 1A. Risk Factors, contained therein and the Company’s quarterly periodic reports for the subsequent periods, including the risk factors in Part II. Item 1A. Risk Factors, contained therein, filed with the SEC. 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 prepetition 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 cases 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. 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, 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.