Delphi, IUE-CWA and GM Agree on Hourly Special Attrition Plan

Certain Employees Eligible For Proposed Special Retirements;

Buyouts of $140,000, $70,000 or $40,000 Available to Eligible IUE-CWA-Represented Employees;

GM Financial Support Provided and Transition to GM Retirement Enabled

TROY, Mich., June 16 -- Delphi Corp. (Pink Sheets: DPHIQ) today announced another important step in its restructuring activities. The company has reached agreement with the IUE-CWA and General Motors (GM) Corp. on a special hourly attrition plan, similar to a plan agreed to with the UAW which includes incentivized and early retirements along with pre-retirement opportunities and certain buy-outs for eligible employees. GM has agreed to provide financial support under the proposed plan. The plan enables a more rapid transformation to a reduced labor cost structure across Delphi's U.S. manufacturing operations. The plan, which is subject to bankruptcy court approval, provides financial incentives for certain types of retirements and permits the transition of up to 3,200 IUE-CWA represented Delphi employees to GM for retirement purposes. Delphi will seek expedited court approval and will continue to focus on reaching a comprehensive consensual agreement on all issues.

"We continue to be focused on the transformation of Delphi and this attrition plan provides a stronger framework to position our successful emergence from Chapter 11," said Delphi President and Chief Operating Officer Rodney O'Neal. "This plan further enables an effective transformation of our U.S. manufacturing and support operations."

Approximately 8,000 hourly IUE-CWA-represented employees are eligible to participate in the program. Certain eligible U.S. hourly employees may be offered a lump sum payment of $35,000 to retire. Eligible employees under the program may elect buyout packages ranging from $40,000 to $140,000.

Under the proposed program, GM has agreed to assume the financial obligations related to the lump sum payments to be made to eligible Delphi U.S. hourly employees accepting normal or voluntary retirement incentives. Additionally, GM will fund certain post-retirement employee benefit obligations related to Delphi employees who transition to GM under the plan for purposes of retirement as well as half of employee buyout costs.

Delphi filed for Chapter 11 reorganization of its operations in the United States on Oct. 8, 2005 in the U.S. Bankruptcy Court of the Southern District of New York and under the jurisdiction of Judge Robert Drain. For more information about Delphi and its operating subsidiaries, visit Delphi's media room at http://www.delphi.com/media/.