Delphi to Acquire Specialty Electronics Inc.

        Acquisition Provides Connection Systems Access to New Markets

    TROY, Mich., May 24 Delphi Automotive Systems
today announced its intent to purchase Specialty Electronics Inc., for $21.8
million.  Specialty is a provider of electronic connector products and
customized interconnect solutions to the telecom, computer, industrial
electronics, medical and automotive markets.  Subject to pending approvals and
other conditions, the companies expect to finalize the transaction by the end
of May.When complete, the acquisition will expand Delphi's reach into new markets
for connectors and connection systems and strengthen its position as the
leading supplier of automotive connection systems.  Specialty's capabilities
and interconnect technologies will be integrated into the recently established
Delphi Connection Systems business.
    "Adding Specialty's flexible manufacturing expertise, engineering
capabilities and established customer relationships to Delphi's extensive
product portfolio, global manufacturing and long-standing connection system
experience adds impetus to our rapid growth strategy for connection system
business," said Kevin Heigel, business line executive, Delphi Connection
Systems.  "In a nutshell, this acquisition provides competency, that when
coupled with our technologies, will allow us to diversify our market reach."
    The acquisition is expected to be financially accretive in the first full
year of ownership, exceeds Delphi's long-term return objectives, and further
positions Delphi to profitably grow Delphi Connection Systems' business in the
telecom, computer peripherals and medical connection markets.

    Connection Systems Business Growth & Customer Diversification
    Industry analysts estimate the global connector market will grow from
$33.2 billion in 2000, to $46 billion by 2005.  Specialty's connector sales
totaled approximately $17 million in 2000, and Delphi's were approximately
$1.3 billion.
    "Delphi is looking forward to the opportunity to work with new customers
and companies that are well-respected in their markets," Heigel said.
    Primary customers of Specialty include Abbott Labs/Medisense, Ademco,
Alcatel USA, Apple Computer, Delphi Delco Electronics, Hewlett Packard,
Iomega, Pitney Bowes, Research in Motion and Roche Diagnostics.

    Stronger Connector Portfolio
    Specialty's applications include insert molded connectors for automotive
and computer markets, fine pitch connectors for telecom/datacom and medical
markets, board level connection devices for computer peripheral and medical
markets, I/O connection systems and semi-custom and custom interconnect
designs.  These products, added to Delphi Connection Systems' high-speed,
high-density connectors, 2mm hard metric connectors and fiber optic
connectors, offer a solid spectrum of solutions for new markets.
    "Specialty has a dynamic entrepreneurial spirit and excellent flexible
manufacturing capabilities that we will be able to leverage as we grow into
new markets," Heigel said.  "As we align Specialty with Delphi Connection
Systems, we will maintain these competitive strengths and fast-to-market
capabilities, while providing the global manufacturing base and financial
support needed for growth."

    Manufacturing and Engineering Footprint
    Specialty is a small, agile manufacturing and engineering company, with
engineering, manufacturing and sales in Landrum, S.C., manufacturing and sales
in Singapore and manufacturing in Mexico.  Approximately 180 employees are
included in the acquisition.

    To learn more about Delphi Connection Systems, log onto
http://www.delphiconnect.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 future sales or earnings
expectations, savings expected as a result of our restructuring plans, volume
growth, awarded sales contracts and earnings per share expectations 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, our ability to successfully implement our
global restructuring plans, changes in the economic conditions 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.