Delco Remy International Announces Alternator Agreement with Delphi Corp.

ANDERSON, Ind., May 22, 2003 -- Delco Remy International, Inc. (DRI), announced today the completion of agreements with various subsidiaries of Delphi Corp. for the acquisition of assets and the licensing of intellectual property utilized in Delphi's global alternator business.

DRI acquired certain engineering and manufacturing assets utilized in Delphi's global alternator business, including Delphi's alternator assets located in Poland. Additionally, as previously announced, Delco Remy assumes Delphi's ownership interest in an alternator joint venture in China. The addition of Delphi's alternator development and test equipment will enhance DRI's existing global product development capabilities.

"These agreements provide new customer opportunities and provide enhanced support to our current global customers with a full line of automotive electrical products. We have already been awarded significant business as a result of our expanded product offerings, and we continue bidding on business globally. We expect to be successful and will be announcing those business ventures in the near future," said Richard L. Stanley, President, Delco Remy International's OE Business.

In a related transaction, DRI obtained a worldwide intellectual property license to utilize Delphi's technology for the manufacture, remanufacture, sale, distribution and service of automotive alternators.

Delco Remy International, Inc., a leading global manufacturer and remanufacturer of automotive, powertrain, drivetrain and electrical products, is headquartered in Anderson, Indiana, USA. Additional information about the company is available at: www.delcoremy.com

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