Delphi Completes Eaton Switch Acquisition

    TROY, Mich., April 2 Delphi Automotive Systems
today announced that it has purchased the Vehicle Switch/Electronics Division
of Eaton Corp. for $300 million.  The acquisition, which is
expected to be financially accretive in its first year of ownership,
immediately ranks Delphi among the top switch suppliers in the world, and
positions the company to expand its switch business sales in automotive and
other market segments.
    
    "We are very excited about this addition to the Delphi team," said James
A. Spencer, president, Delphi Packard Electric Systems and Delphi executive
vice president.  "With these combined resources and customer base, Delphi
Packard Electric is now the world's third-largest automotive switch producer
and a market leader in mechatronic devices.  I believe that we have a winning
combination of switch technology and electronics expertise to aggressively
grow this segment of our business."

    Delphi announced its intent to purchase the VS/ED last month, which adds
extensive switch technology to Delphi's portfolio and brings a solid book of
business to Delphi's bottom line.  Together, these factors will allow Delphi
to offer new product solutions to its global customers and the potential for
solid gains in market share.  The acquisition also provides a platform for
Delphi to apply its exclusive license agreement of Duraswitch(R) technology in
the automotive industry.

    The acquired unit employs approximately 3,850 employees worldwide,
including more than 200 engineers at manufacturing facilities in Germany,
Spain, Poland, Mexico and Brazil, and engineering facilities in the United
States, France and Germany.

    In conjunction with today's announcement, German native Lothar Veeser is
named business line executive of Delphi Mechatronic Systems and will oversee
Delphi's complete switch and mechatronic product portfolio.  Veeser, who has
extensive international automotive engineering, management, marketing and
sales experience, was most recently general manager of Eaton's VS/ED.