Bosal and Delphi Announce Strategic Exhaust Alliance

TROY, Mich., and LUMMEN, Belgium, May 2, 2005 -- Delphi Corp. and Belgium-based Bosal Group announced today a new strategic alliance to offer complete exhaust systems for the global original equipment (OE) market.

The non-equity based alliance, to be known as Bosal Delphi Complete Exhaust Systems, will bring together the specific expertise, facilities and resources of each party to offer a total customer solution around the globe for any vehicle program and all current fuel options.

Delphi has extensive experience and resources in the design and manufacture of the "hot end" (manifold and catalyst, including manifold converters, diesel converters and spinforming technology), with Bosal recognized as a leader in the design and development of the "cold end" (from intermediate muffler to tailpipe.)

Both companies are also recognized for their innovative approach and commitment to advanced technologies, such as Delphi's fragile substrate retention systems and Bosal's breakthrough cold-end innovation, the Lightweight Exhaust System.

The alliance will retain and nurture current customer relationships, while future customers will access the alliance through one single initial point of contact.

Bosal and Delphi will also cooperate through novel and cost-effective manufacturing arrangements which will allow each party to better meet customer supply contracts without the need for major infrastructure investment.

"This is a very innovative and exciting alliance which will deliver significant added value to customers of both Delphi and Bosal," said Karel Bos (1961), CEO, Bosal Group. "The alliance is an excellent technical, commercial and geographical 'fit', enabling us to respond faster, more cost-effectively and completely for our customers around the world. It will also open up a wider customer base for our breakthrough cold end innovations which are delivering significant weight savings and other related benefits."

"We welcome this alliance with Bosal, an independent Tier 1 supplier with recognized expertise in cold end exhaust applications," said John Fuerst, Delphi's exhaust systems business line executive. "It will help us respond better to the needs of our global customer base for complete exhaust systems, by providing a single global point of access to an unrivalled wealth of expertise and resources, yet delivering locally through our shared infrastructure."

The alliance will become effective upon completion of all relevant formalities under competition laws, including obtaining any required approvals from governmental authorities. Both parties will begin making the necessary logistical and transitional activities to make the alliance seamless to customers, with scheduled completion in mid-2005.

About Bosal Group

Bosal is one of the world's leading manufacturers of car exhaust systems. Bosal also produces catalytic converters, tow bars, roof bars, jacks, precision steel tubing and warehouse racking systems.

Established in 1923 in Alkmaar, the group is Dutch registered, headquartered in Lummen, Belgium. The annual turnover in 2004 was in excess of euro 835 million. The Bosal Group employs more than 6,200 people and has 29 manufacturing plants and 15 distribution centres.

  For more information: http://www.bosal.com/