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Delphi Electronics & Safety Division Announces Aggressive Plans to Improve Competitiveness


Company to Consolidate Floorspace at Kokomo Complex
KOKOMO, Ind. -- Delphi Corp. (PINKSHEETS: DPHIQ) today announced plans to consolidate its engineering and manufacturing facility at its Delphi Electronics & Safety Kokomo campus as part of the company’s ongoing efforts to improve business competitiveness in response to market changes. The facility consolidation will help eliminate the cost of excess floor space in Kokomo and strengthen the site’s long-standing engineering and manufacturing excellence.

During the consolidation scheduled to begin in August, Delphi will make renovations and upgrades in the facilities where employees will be relocated. The moves are expected to be completed by the end of this year.

Delphi’s Kokomo facilities will continue to build numerous products including integrated circuits, engine controllers, safety electronics, sensors and power electronics for hybrid vehicles at the Kokomo manufacturing facilities. In addition, the location will continue to serve as the major global engineering and administration facility for the division.

“Kokomo operations are very important to Delphi Electronics & Safety,” said Timothy Richards, vice president of Delphi Electronics Group. “We have a very strong technical capability here in Kokomo that serves our locations around the globe and Kokomo continues to be a very important part of our future plans. The consolidation efforts announced today are focused on making these engineering capabilities more competitive by reducing the costs associated with underused facilities.”

Employees currently working in Delphi Electronics & Safety Plants 9 and 10 and the Information Technology Center, located just east of U.S. 31 between Boulevard and Lincoln Road, will be relocated to Delphi facilities on the same complex farther east including Plants 6, 7 and 8, the Engineering Resource Center, FAB III and the Corporate Technology Center. Delphi will also move employees from a leased training facility located on Lincoln Road to the east complex. The consolidation will result in the clearing of approximately 614,000 square feet of floorspace.

Delphi currently employs approximately 4,000 salaried and hourly employees in Kokomo. Employees were notified of the changes by a letter that was distributed earlier today.

Delphi has been implementing efforts to adjust its global manufacturing and engineering footprint to further strengthen the company’s ability to compete in a global and highly competitive marketplace. The company expects to realize substantial cost savings in maintenance and utilities by consolidating the operations.

This press release, including the exhibits being furnished as part of this report, 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, to obtain an extension of term or other amendments as necessary to maintain access to such facility and to secure the anticipated advances from GM in order to obtain any such extension or amendment; 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 consummate its amended plan of reorganization which was confirmed by the Court on January 25, 2008 or any other subsequently confirmed plan of reorganization; 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 “Plan of Reorganization and Transformation Plan” of the Annual Report on Form 10-K for the year ended December 31, 2007 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 or those of its principal customers and the ability of the Company to attract and retain customers. Additional factors that could affect future results are identified in the Annual Report on Form 10-K for the year ended December 31, 2007 filed with the SEC, including the risk factors in Part I. Item 1A. Risk Factors, contained therein. 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.


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