Delphi Acquires Dynamit Nobel AIS GmbH Automotive Ignition Systems

TROY, Mich., Sept. 1 -- Delphi Corp. announced today that it has acquired the intellectual property and substantially all the assets and certain liabilities of Dynamit Nobel AIS GmbH Automotive Ignition Systems (Dynamit Nobel AIS), a designer and manufacturer of initiators, propellants, micro-gas generators (MGGs) and related products for the automotive industry. The purchase price was approximately 16 million euros, or $US 19.5 million, which includes 14.5 million euros ($US 17.7 million) in cash consideration and assumption of pension liabilities.

"The acquisition of Dynamit Nobel AIS provides technologies that will be beneficial to our long-term occupant protection systems business strategy," said Jeff Owens, vice president, Delphi and president, Delphi Electronics & Safety. "Occupant protection systems are sophisticated elements of the total vehicle safety system design. As car and truck buyers continue to demand vehicles with enhanced safety features, our OEM customers' requirements are becoming more complex and rigorous. In-house capabilities in related components are an important ingredient in our ability to create future safety innovations."

"Dynamit Nobel AIS's high-precision components will be key elements of Delphi's future airbag systems and seat belt pretensioners, and enhance Delphi's existing capabilities for certain inflator technologies," said Timothy M. Hamashuk, director of Delphi's Occupant Protection Systems business line. "This acquisition will significantly strengthen our overall inflator technology portfolio."

Dynamit Nobel AIS, located in Stadeln, Germany, is a wholly owned subsidiary of mg technologies AG, Frankfurt. The business had total sales of 40 million euros ($US 45 million) for 2003 and currently employs 210 people at a single location in Stadeln, Germany, near Nuremberg. Going forward, the facility will operate and distribute its products under the name Delphi Deutschland GmbH, Stadeln Operations -- Electronics & Safety.

Delphi Electronics & Safety is a division of Delphi Corp., a world leader in mobile electronics and transportation components and systems technology. Delphi Corp. is headquartered in Troy, Mich., U.S.A. and has approximately 186,000 employees worldwide, including about 50,000 in Europe.