Delphi and CARDONE Have Agreed to Form a Business Alliance

Alliance Will Enhance Delphi's Vehicle Electronics Portfolio and Expand CARDONE Remanufacturing Operations

LAS VEGAS, Nov. 4 -- Delphi Corp. , the world's largest automotive supplier, and CARDONE Industries, the world's leading automotive remanufacturing company, announced today that they have executed a Memorandum of Understanding and are in the final stages of negotiating the terms of a business alliance. Implementation of alliance activities is targeted to begin by the end of this year.

The objective for this business alliance is to attain a global leadership position in remanufactured vehicle electronics. As a first step, Delphi will market an all-makes program of CARDONE remanufactured engine control computers (ECC) and mass air flow (MAF) sensors to the traditional independent aftermarket, complementing Delphi's already full line of vehicle electronics. In the following months, other remanufactured Electronic Control Units will be added to the portfolio of products covered by the alliance, including anti- lock brake (ABS) controls, body controls, cruise controls, power steering controls, suspension controls and transmission controls. This alliance will enable Delphi to expand its vehicle electronics product portfolio and demonstrates Delphi's commitment to aggressively pursue growth in the independent aftermarket. In addition, through this business alliance, CARDONE will have increased business opportunities to expand its remanufacturing operations globally.

"Through this alliance, Delphi will claim a global leadership position in remanufactured vehicle electronics in the independent aftermarket, mirroring its position on the OE side," said Francisco A. (Frank) Ordonez, president, Delphi Product & Service Solutions and vice president, Delphi Corporation. "This alliance will provide Delphi with immediate capabilities for all-makes remanufactured products -- an important step for our overall aftermarket business."

Delphi will be responsible for providing marketing, customer service and technical support for Delphi products, which will be remanufactured by CARDONE as part of the alliance.

The CARDONE national sales force will provide sales and account servicing for these alliance products.

"This alliance with Delphi, a major OE automotive supplier and a world leader in automotive electronics, will enhance CARDONE's technology and engineering capabilities," said Michael Cardone, Jr., president and CEO of CARDONE Industries. "Delphi's leadership in the manufacturing of high-tech and sophisticated electronic parts is unsurpassed. By combining our respective competencies we will reduce the time it takes to introduce the advanced technology products to the aftermarket. Customers will benefit as we ensure the global aftermarket has continued access to these new technologies while continuing to receive the highest quality products and services."

Customers will enjoy clear advantages from this alliance as Delphi and CARDONE jointly develop new remanufactured product categories for the aftermarket. This alliance will bring shortened product development time together with the superior value proposition offered by remanufactured products for a more efficient supply chain for high technology parts in the aftermarket. CARDONE's ISO/TS16949 and ISO 14001 certified remanufacturing operations will create the highest quality parts in the aftermarket. In forming and conducting this business alliance, Delphi and CARDONE are committed to leading the industry in corporate values, customer value, first to market, quality and technology introduction.

About Delphi

Leveraging its OE electronics expertise, Delphi continues to focus on providing OE quality replacement parts to the independent automotive aftermarket, offering full-line coverage in domestic and import applications for air & fuel delivery parts, emissions products, HVAC components and Delphi Freedom(R) branded batteries. Delphi also offers industry leading advanced diagnostic solutions such as the DS800 computer-implemented diagnostic system. Delphi products are supported by Delphi TechSource, component-level technical assistance available at 1.877.Go.Delphi and online catalogs at http://go.delphi.com/ . For more information about Delphi, visit www.delphi.com/media .

About CARDONE

CARDONE Industries, Inc. is a leading global automotive parts remanufacturer with a full line of brakes, drivetrain, electronics, pumps, motors and steering. Based in Philadelphia, PA, the company employs over 4,000 and operates 21 plants with over 2.5 million square feet of manufacturing and warehouse capacity in North America and Europe. CARDONE is ISO/TS 16949 and ISO 14001 certified, serves a client base that includes the top global automotive aftermarket organizations, tier one suppliers and original equipment manufacturers. For more information about CARDONE, log onto www.cardone.com .