Delphi Corporation Makes Changes to Executive Compensation

Chairman and CEO Miller to take $1 per year salary Company officers to waive 10% to 20% of base pay

TROY, Mich., Oct. 17 -- Delphi Corp. today made several announcements related to executive compensation in connection with its recently filed chapter 11 business reorganization cases. Delphi's Chairman and CEO, Steve Miller, will reduce his salary to $1 per year, effective Jan. 1, 2006, and continuing until Delphi successfully emerges from its reorganization in Chapter 11. In addition, the Delphi officers who were at Delphi at the time when Miller joined the company, volunteered to waive 10 percent of their base pay, 20 percent in the case of President Rodney O'Neal, to be effective Jan. 1, 2006.

"I have given the subject of executive compensation a great deal of thought and planned to announce a reduction in my own compensation, as I had previously suggested," said Robert S. "Steve" Miller, Delphi Chairman and CEO. "In addition to my annual salary of $1, I will continue to receive zero bonus, zero severance, zero pension plan, and will have no other similar entitlements whatsoever. While I remain concerned about the below-market compensation paid to many of our key executives, Delphi's transformation message must be unambiguous and marked indelibly by the commitment of Delphi's leadership. To that end, Delphi's officers who were at Delphi when I joined, have unilaterally volunteered to give back 10-20 percent of their base pay -- a clear indication of their commitment."

Delphi said that the balance of compensation arrangements for its executives would be decided by the Bankruptcy Court at the company's Nov. 29 omnibus hearing when the company's Key Executive Compensation Program (KECP) motion will be heard by the Court. Under the terms of the KECP motion, which was filed with the Bankruptcy Court on Oct. 8, Delphi will cancel previously authorized and disclosed retention bonus programs and unvested long-term incentive compensation programs and will replace them with incentive and emergence programs aligned with stakeholders' interests in the chapter 11 reorganization cases.

More information on Delphi's U.S. restructuring is available at http://www.delphidocket.com.