Delphi Board Declares Quarterly Dividend

TROY, Mich., June 22 -- The Delphi Corp. Board of Directors today declared a quarterly dividend of $0.015 per share on Delphi $0.01 par value common stock. The previous quarterly dividend was $0.03 per share paid in May 2005.

The Board determined that the reduction of the dividend is the prudent course of action at this time given the significant challenges facing the industry, including the reduction and continued uncertainty of U.S. production volumes from Delphi's largest customer.

"With our long-term sights on shareholder return, today's actions conserve liquidity to support our transformation and strengthen our business during this challenging environment," said J.T. Battenberg III, Delphi chairman and CEO. "This decision provides further evidence of Delphi's commitment to maintaining and conserving liquidity. Last week, Delphi announced the completion of a $2.8 billion refinancing plan designed to provide the company continued access to long-term liquidity."

The dividend is payable Aug. 2, 2005, to shareholders of record as of the close of business July 5, 2005. The Board will continue to evaluate the company's dividend policy on a quarterly basis.

The Board also scheduled Delphi's 2005 annual meeting of stockholders. The annual meeting will be held Oct. 12, 2005 in Wilmington, Del. Stockholder proposals intended for inclusion in the proxy material for the 2005 annual meeting must be received at Delphi's world headquarters in Troy, Mich., no later than July 14, 2005. For more information regarding the submission of stockholder proposals, refer to Delphi's filings with the SEC, including the bylaws, at http://www.delphi.com/ . Delphi expects to mail proxy material containing additional information about the 2005 annual meeting in August.