Delphi Completes Sale of U.S. Battery Plant to JCI

Sale of New Jersey plant final step in global business divestiture

TROY, Mich., Aug. 2 -- Delphi Corporation (Pink Sheets: DPHIQ) has completed the sale of its New Brunswick, N.J., battery manufacturing facility to Johnson Controls, Inc. (JCI), effective Aug. 1, 2006. This sale, which includes ownership of the facility and assets, and employment of approximately one-third of the hourly workforce, represents the final step in the two-stage global battery business sale announced in July 2005.

"The sale of this plant is an important step forward in our overall restructuring plan," said James A. Bertrand, president, Delphi Automotive Holdings Group. "A consensual agreement with our customers and the International Union of Electrical Workers (IUE-CWA) paved the way for the sale of Delphi's U.S.-based battery assets, and concludes our effort to divest Delphi's global battery business."

Approximately 100 New Brunswick employees transition with the site to JCI. The remaining workforce has exercised either an early retirement or a buy-out option. Delphi has one remaining battery production facility in Fitzgerald, Ga., that will continue to build out batteries as a tier-2 supplier to JCI into 2007.