Delphi Announces Significant Progress in Discussions with UAW and General Motors

Parties Negotiate Supplement to Previously Announced UAW Hourly Attrition Program with Buyouts and Expanded Retirement Opportunities for Most UAW Employees, Subject to Court Approval

Productive Framework Discussions Continue on Comparable Attrition Programs with Other Major Unions

GM Agrees To Provide Financial Support for Incentive Retirement and Buyout Options for Major Unions and Commits to Explore Additional Support

Delphi Granted Adjournment to August 11, 2006 to Accelerate Discussions with Unions and GM

TROY, Mich., June 9 -- Delphi Corp. announced today significant progress in its discussions with the UAW and General Motors Corp., including a Supplemental Agreement with the UAW expanding existing retirement incentives and establishing a buyout program. The company achieved a framework for GM support on additional incentive attrition programs for its U.S. hourly workforce.

The current UAW special attrition program for retirement-eligible employees, which covered employees with 27-30 years of credited service, assuming Court approval, will expand to include a pre-retirement program for employees with 26 years of credited service and provide buyouts for UAW- represented hourly employees: $140,000 for employees with more than 10 years seniority or credited service, whichever is greater; $70,000 for employees with less than 10 years seniority and pro-rated payments for non-traditional employees. The new options added to the special attrition program are enabled by financial support from GM.

Delphi continues framework discussions with the IUE-CWA, USW and other unions to offer, with GM support, similar attrition programs for their members, allowing Delphi to more rapidly transform its U.S. manufacturing operations and soften the economic impact upon the hourly workforce.

In light of the recent progress, the U.S. Bankruptcy Court for the Southern District of New York, today adjourned hearings on Delphi's 1113/1114 motion until Aug. 11, 2006, to allow the company, its unions and GM additional time to fully focus on reaching comprehensive consensual agreements. The Court also postponed commencement of the Section 365 hearing seeking cancellation of certain commercial contracts with GM until at least Aug. 11, 2006. The Section 365 hearing is scheduled to commence following the resolution or completion of the Section 1113/1114 hearings.

Orders authorizing the adjournment are expected to be docketed by the Court early next week. The Court also rescheduled Delphi's monthly omnibus hearing from June 16 to June 19, 2006.

"The Court has advised the parties to continue efforts for a consensual resolution of the issues and work diligently toward an agreement outside of court," said Delphi Chief Restructuring Officer John Sheehan. "We remain committed to that outcome, and believe there is sufficient framework and understanding between the parties to enable further progress in negotiations during the recess period."

For more information about Delphi (Pink Sheets: DPHIQ), visit http://www.delphi.com/ .