Delphi Reports First Half 2006 Financial Results

TROY, Mich., Aug. 15, 2006 -- Delphi Corp. today reported first half 2006 financial results with revenues of $14.0 billion, and a GAAP net loss of $2.6 billion, including charges of $1.9 billion associated with the company's special attrition program. The company generated $187 million in GAAP cash flow from operations in the first half of the year. Non-GM revenues grew 9 percent year-over-year to $7.7 billion, representing 55 percent of global revenues.

"In the first half of the year, Delphi achieved an 85 percent acceptance rate of UAW employees signing up for its special attrition program," said Robert Dellinger, Delphi chief financial officer. "The attrition programs are a step in our transformation; however, we continue to experience losses reflecting an uncompetitive U.S. cost structure. Our leadership is addressing these issues with our stakeholders, including our unions and General Motors, as part of our reorganization proceedings through the bankruptcy court."

First Quarter 2006 Financial Results

* Revenue of $7.0 billion, up approximately 2 percent from $6.9 billion in Q1 2005.

* Non-GM revenue for the quarter was $3.8 billion, up approximately 8 percent from $3.5 billion in Q1 2005. Non-GM business represented 54 percent of Q1 revenues, compared to year-ago levels of 50 percent.

* GAAP cash flow used in operating activities was $93 million, as compared to $529 million provided by operating activities for Q1 2005. Cash used in operations was negatively impacted by the timing of cash collections on sales for Q1 2006.

* GAAP net loss of $363 million or a loss of $0.65 per share compared to Q1 2005 net loss of $403 million or a loss of $0.73 per share.

  Second Quarter 2006 Financial Results
  *  Revenue of $7.0 billion, the same as in Q2 2005.

* Non-GM revenue for the quarter was $3.9 billion, up approximately 9 percent from $3.6 billion in Q2 2005. Non-GM business reached 56 percent of Q2 revenues, compared to year-ago levels of 51 percent.

* GAAP cash flow provided by operating activities was $280 million, as compared to cash flow used in operating activities of $305 million in Q2 2005.

* GAAP net loss of $2.3 billion compared to Q2 2005 net loss of $338 million. Included in the Q2 2006 GAAP net loss are charges related to the previously announced special attrition programs. These charges include a net pension and postemployment benefit curtailment charge of $1.5 billion, primarily due to reductions in anticipated future service as a result of the retirements, and $392 million of charges related to the pre-retirement and buyout portions of the special attrition programs.

First Half 2006 Financial Results

* Revenue of $14.0 billion, up slightly from $13.9 billion in first half 2005.

* Non-GM revenue for first half 2006 was $7.7 billion, up approximately 9 percent from $7.1 billion in first half 2005. Non-GM business reached 55 percent of first half 2006 revenues, compared to year-ago levels of 51 percent.

* GAAP cash flow provided by operating activities was $187 million, as compared to $224 million provided by operating activities for first half 2005.

* GAAP net loss of $2.6 billion compared to first half 2005 net loss of $741 million. Included in the first half 2006 GAAP net loss are charges related to the previously announced special attrition programs. These charges include a net pension and postemployment benefit curtailment charge of $1.5 billion, primarily due to reductions in anticipated future service as a result of the retirements, and $392 million of charges related to the pre-retirement and buyout portions of the special attrition programs.

Additional Information

Additional information concerning Delphi's (Pink Sheets: DPHIQ.PK) first and second quarter 2006 results is available through the Investor Relations page of Delphi's website at http://www.delphi.com/ and in Delphi's first and second quarter Form 10-Qs, scheduled to be filed with the Securities and Exchange Commission later today.