Delphi Begins Construction of New China Technical Center

First phase of R&D center to be completed in a year

SHANGHAI, China, July 19 -- Delphi Corporation today held the groundbreaking ceremony of its first R&D center in China. As a wholly owned entity of Delphi, China Technical Center is expected to open in June 2005, and based on current plans will initially employ approximately 500 engineers, scientists and technical professionals.

Delphi announced last December it would open its first technical center in Shanghai, China to develop components and support application and systems engineering for several local customers and transplant automakers in the country in addition to global customers.

"As research and development plays an increasingly important role in today's auto industry, we plan to leverage our global R&D resources to benefit the China operations," said J.T. Battenberg III, Delphi's chairman, chief executive officer and president. "The Delphi China Technical Center marks a significant milestone for us. It represents an important strategic move in China -- building world-class R&D capabilities to complement our extensive manufacturing presence."

Delphi's presence in China dates back to 1993, in anticipation of growth in the Chinese automotive market. As the leading foreign invested component and integrated systems supplier in the country, Delphi operates 14 facilities across the country. With the China Technical Center, Delphi's total investment in China will be approximately US$500 million.

"China offers not only a growing market but an excellent talent pool," said Donald Runkle, Delphi's vice chairman, Enterprise Technologies. "Upon completion of the final phase in 2009, in time for Shanghai's World Expo in 2010, we plan to have approximately 1,400 engineers, scientists and supporting staff who will support application and systems engineering with Delphi's latest advanced technologies for local and global customers."

With new technical centers in Japan and Korea, Delphi continues to expand its global footprint in the Asia/Pacific region while providing technical expertise to customers around the world.

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