Delphi Announces First Technology Commercialization Deal

TROY, Mich., Sept. 12 Delphi Corp. announced today that it has signed a joint venture agreement with WebCradle LLC to create Precon Machining Optimization Technologies ("Precon") to commercialize Delphi's existing Math Based Metal Removal (MBMR) technology.

Precon will use MBMR, a software simulation tool, as the foundation for offering consulting services to machining manufacturers to optimize their machining processes, improve their throughput and reduce costs of machining operations. Services will include simulating and analyzing the existing process, optimization, and implementation of MBMR. Precon will also use the MBMR technology to assist customers with new process design challenges.

"We are very excited about the potential of this technology based on the improvement in throughput we've experienced within Delphi plants," said Dr. Andrzej Pawlak, Delphi's new business development technology manager. "Precon will help machining manufacturers realize similar or greater improvements and savings through the use of MBMR."

MBMR simulates popular machining processes, including tool paths and cutting forces, and features powerful visualization tools. Also, unlike traditional software, this system has an extensive database of materials and cutters so that engineers don't have to guess about feeds and speeds. When combined with Precon's staff of experienced engineers, MBMR provides customers a significant potential to improve their manufacturing productivity.

One of the priorities will be rapid results for customers. "Companies that machine in volume with CNC (numerically controlled) equipment are likely to see terrific paybacks," said Ed de Chazal, vice president of Sales and Marketing for Precon. "We expect typical customers to see results in less than four weeks."

In March 2002, Delphi integrated its technology commercialization and licensing activities with Delphi's Mergers, Acquisitions and New Markets function. In addition to its licensing activity, Delphi has been exploring joint ventures as a way to unlock value in its sizable portfolio of intellectual property.

"We found that we had developed some terrific technologies that we knew were commercially viable," said Neal Sweeney, a director in Delphi's Mergers, Acquisitions and New Markets group. "We invited technology development companies to partner with us in the commercialization process. We chose to partner with WebCradle due to its focus on manufacturing, local presence and knowledge and the strength of its team."

The math-based metal removal technology was a winner of the 2001 Automotive News PACE Awards.

For more information about Delphi and its operating subsidiaries, visit Delphi's Media Room at www.delphi.com/media/ .

WebCradle LLC, a privately held LLC, is a technology incubator specializing in manufacturing technologies in the automotive industry. WebCradle, founded in 2000 and based in Grosse Pointe Park, focuses on developing companies around technologies that deliver value and efficiency to the manufacturing environment. For more information on WebCradle, please visit www.webcradle.net .