DPSS Expands Compressor Line to Include Ford and Toyota Models

Release Date: October 31, 2006

TROY, Mich. – Delphi Product & Service Solutions announced today at a press conference held at the Automotive Aftermarket Products Expo (AAPEX) in Las Vegas, that it is adding Ford and Toyota applications to its current compressor portfolio, which primarily features GM applications. The SP series of compressors will specifically cover late model years – 2006 and forward – for select Ford and Toyota applications.

“Once again we are delivering on the promise we made five years ago to bring a broad base of products to the aftermarket that leverages our strong, global original equipment content and manufacturing footprint,” says Dave Barbeau, independent aftermarket business unit executive, Delphi Product & Service Solutions. “And because we are the exclusive aftermarket source to offer these compressors, we are providing repair shops with the unique opportunity to service their customers.”

As vehicle manufacturers know, Delphi compressors have proven durability, reliability, and performance, which they have come to expect from a global compressor manufacturer.

The SP series compressors, like all compressors sold by Delphi, are manufactured as new product and not remanufactured. This ensures that the air-conditioning system operates to the vehicle manufacturers’ performance standards. The SP series of compressors will be sold as a complete product with the clutch, coil, pulley and compressor lubricant and meet the automotive industry’s refrigerant leak rate standard of one pound in 40 years.
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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 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 pre-petition liabilities.

For more information contact:

Delphi
Carrie Wright
carrie.wright@delphi.com
+1 248.267.8687

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