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Delphi's Packard-Hughes Interconnect Brings 2 MM Hard Metric Connectors to Telecom Market

    IRVINE, Calif., March 1 Delphi Automotive Systems
announced today it will be offering 2mm Hard Metric connectors to
the telecom and datacom markets, through its Packard-Hughes Interconnect (PHI)
subsidiary.
    (Photo:  http://www.newscom.com/cgi-bin/prnh/20001019/DELPHIAS )
    "In a capacity-constrained market we are offering telecom/datacom
customers another option to acquire industry standard product at a better than
industry lead-time," said Bill Jensen, president, PHI connection systems.
"Our introduction of the 2mm Hard Metric product is a key element of our
commercial strategy.  This is one of many product introductions targeting the
telecom/datacom industry."
    PHI is a pioneer in high-density pin and socket connectors that have been
used in advanced military applications for nearly two decades.  The 2mm
connector offered by PHI meets industry standards (IEC 61076-4-101), is
intermateable with all 2mm Hard Metric systems and is used as the primary
backplane interface.  It is a 2-piece backplane connector that offers
flexibility and modularity in one consistent system.  This interconnect
solution provides signal contacts and offers the capabilities for both power
and coaxial contacts.  With its high-speed and high-density characteristics,
it provides critical interface in routers, switches and hubs for essential
telecommunication equipment as well as handles the rugged environments of the
industrial controllers.
    "The 2mm Hard Metric connector provides three levels of mating contacts
and six unique insulator styles that allow, with a finite number of
components, a nearly infinite number of design options," said Dr. Eric Jensen,
2mm Hard Metric value stream manager.  "This market is looking for industry
standard capability as well as multiple sources due to the shortages in
product it experienced in 2000 and continues to see in 2001."
   Ron Bishop of Bishop and Associates estimates the market for 2mm Hard
Metric connectors to be more than $300M this year.  This market is growing at
a pace where many industry experts, including Bishop, believe the industry is
only able to meet 75 to 85 percent of the demand for 2mm Hard Metric
connectors.
    PHI expects to provide more than 1 million 2mm Hard Metric connectors this
year to the market, supplying the connection systems to major telecom
companies through PHI's distribution network.
    Headquartered in Irvine, Calif., PHI is a wholly owned subsidiary of
Delphi Automotive Systems.  PHI designs and manufactures advanced interconnect
components that can be used in computer, telecom, broadcast, semiconductor,
commercial aviation, and automotive and military markets.  More information on
the company can be found at http://www.packardhughes.com .
    For more information about Delphi Automotive Systems, visit Delphi's
Virtual Press Room at http://www.delphiauto.com/vpr .

    Forward Looking Statements
    The Private Securities Litigation Reform Act of 1995 provides a safe
harbor for forward-looking statements made by us or on our behalf.  All
statements contained or incorporated in this release which address operating
performance, events or developments that we expect or anticipate may occur in
the future, including statements relating to volume growth, awarded sales
contracts and earnings per share growth or statements expressing general
optimism about future operating results, are forward-looking statements.
Principal important factors, risks and uncertainties which may cause actual
results to differ from those expressed in our forward-looking statements are:
our ability to increase non-GM sales and achieve the labor benefits expected
from our separation from GM, potential increases in our warranty costs,
changes in the economic conditions, currency exchange rate fluctuations or
political environment in the markets in which we operate, financial or market
declines of our customers or significant business partners, labor disruptions
or material shortages, the level of competition in the automotive industry,
significant downturns in the automobile production rate, costs relating to
legal and administrative proceedings, changes in laws or regulations
pertaining to the automotive industry, our ability to realize costs savings
expected to offset price reductions, our ability to make pension and other
post-retirement payments at levels anticipated by management, our ability to
successfully exit non-performing businesses and absorb contingent liabilities
related to divestitures, our ability to complete and integrate acquisitions,
changes in technology and technological risks, our ability to protect and
assert patent and other intellectual property rights, and other factors, risks
and uncertainties discussed in our annual report on Form 10-K for the fiscal
year ended December 31, 2000 and other filings with the Securities and
Exchange Commission.  Delphi does not intend or assume any obligation to
update any of these forward-looking statements.