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Delphi Stays at the Cutting Edge of Entertainment Sophistication With Two New Vehicle Audio Units

Delphi Demonstrates Two New Receivers that Enhance Quality, Performance, Features and Functions

LAS VEGAS, Jan. 5 -- Delphi Corp. will unveil two brand new audio receivers at the 2004 International Consumer Electronics Show (CES) this week in Las Vegas. Delphi officials will demonstrate the company's latest digital AM/FM tuner and a tuner using the Philips Infinite Audio hard disc drive (HDD). Both of the systems, which can be seen at Delphi's CES exhibit (Las Vegas Convention Center, North Hall, Booths #5206 and #5213), are designed to provide consumers advanced functionality and improved performance with digital quality.

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"We are pleased to introduce two audio units that are at the technological edge of achievement for mobile entertainment," said Dr. Bob Schumacher, business line executive for Wireless at Delphi Electronics & Safety. "These audio systems are Delphi's response to consumers who are demanding sophisticated features and functions as well as performance in their car radios. The new features will bring the best seat for entertainment into the vehicle."

Delphi Digital Tuner

The new Delphi Digital Tuner is the result of Delphi's research and development into advanced digital tuner algorithms, resulting in an overall cleaner and clearer signal. It is the next generation of audio system that adds new features into Delphi's already advanced radios.

The audio system available this year on 2004 vehicle models uses the latest technology to bring enhancements like a continuously variable IF bandwidth filter that helps eliminate interference from strong adjacent stations. The system also has a threshold-extending FM detector that helps pull in even the weakest stations allowing for increased range on FM channels. In addition, multi-path mitigation algorithms help eliminate spits and pops that usually occur with FM audio when in urban and hilly environments, while AM/FM noise blankers further reduce clicks, spits and pops. Delphi's world- class antenna diversity algorithm takes the Delphi Digital Tuner to the next level of performance with multi-path noise mitigation, while advanced weak signal algorithms dramatically improve the listening experience with impaired signals.

Modulation-based audio processing for AM channels improves signal-to-noise on AM channels for cleaner sounding signals. And, the Delphi Digital Tuner is fully compatible with HD Radio(TM), paving the way for the transition to the revolutionary HD Radio digital broadcast. Highly flexible software implementation allows for digital customization to match the preferences of individual customers.

Delphi Tuner with Philips Infinite Audio Module

Delphi's new tuner with the Philips Infinite audio module is a combination vehicle CD player with a 20-gigabyte HDD. The system serves as an audio entertainment jukebox with the capability to copy, store and playback an entire CD/MP3 music library. It also includes a time shift feature that allows the user to stop play and store AM/FM or satellite broadcasts in entirety for later playback.

Infinite Audio provides considerable mass storage that can be further partitioned to allow storage of vehicle diagnostic codes and navigation databases with necessary fast read/write access times required for these systems. The unit has processing power to allow multi-functionality that includes playback for four independent audio streams over wireless headsets, six times speed for ripping CD data to the HDD, and rapid read/write data access to the HDD.

Delphi has produced more than 256 million audio units since putting the first in-dash receiver in an instrument panel in 1936. Delphi followed that innovation with a long list of audio "firsts," including:

  *  Introduction of the first push-button mechanical radio (1939)
  *  Introduction of the first successful signal seeking radio (1947)
  *  Introduction of "favorite station" version of the signal-seeking radio
     (1952)
  *  Producing its first auto radio using hi-power transistors (1956)
  *  Introduction of the first completely transistorized auto radio (1957)
  *  Introduction of the transportable, combination car/portable removable
     radio (1958)
  *  Introduction of AM/FM car radio (1963)
  *  Producing the first 8-track stereo tape player (1966)
  *  Introduction of Wonder Bar Stereo, an exclusive for vehicles that
     selected stations broadcasting stereo only (1969)
  *  Producing the first AM/FM stereo radio and tape player in single
     package (1969)
  *  Introduction of the citizens band transceiver (1976)
  *  Introduction of the industry's first factory-installed in-dash AM/FM
     stereo with digital clock radio and CB transceiver (1977)
  *  Installation of the first factory radio with CD playback (1987)
  *  Installation of the first factory radio with expanded FM band from 1610
     to 1710 (1991)
  *  Introduction of its first integrated radio/navigation system, Telepath
     100 (1994)
  *  Introduction of the industry's first factory-installed satellite radio
     (2002)

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

All statements contained or incorporated in this press 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 global restructuring or other initiatives, portfolio 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 within the meaning of the Private Securities Litigation Reform Act of 1995. These statements are made on the basis of management's current views and assumptions with respect to future events. Important factors, risks and uncertainties which may cause actual results to differ from those expressed in our forward-looking statements are discussed in detail in our filings with the Securities and Exchange Commission, including our annual report on Form 10-K for the year ended December 31, 2002. In particular, the achievement of projected levels of revenue, earnings, cash flow and debt levels will depend on our ability to execute our portfolio and other global restructuring plans in a manner which satisfactorily addresses any resultant antitrust or labor issues and customer concerns, any contingent liabilities related to divestitures or integration costs associated with acquisitions, and other matters; the success of our efforts to diversify our customer base and still maintain existing GM business; the continued protection and exploitation of our intellectual property to develop new products and enter new markets; and our ability to capture expected benefits of our cost reduction initiatives so as to maintain flexibility to respond to adverse and cyclical changes in general economic conditions and in the automotive industry in each market we operate, including customer cost reduction initiatives, potential increases in warranty costs, pension contributions, healthcare costs, disruptions in the labor, commodities or transportation markets caused by terrorism or war and other changes in the political and regulatory environments where we do business. Delphi does not intend or assume any obligation to update any of these forward-looking statements.

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