Delphi to Seek Continuation of Hearings on GM Agreements and DIP Accommodation Agreements

TROY, USA - November 24, 2008: Delphi Corp. today announced that it asked the U.S. Bankruptcy Court for the Southern District of New York at today's monthly omnibus hearing to defer completing the hearings on Delphi's GM Arrangement Second Amendment Agreement Approval Motion and Debtor-In Possession (DIP) Accommodation Motion until Dec. 1, 2008, pending further discussions among Delphi, GM and the Administrative Agent for the DIP Lenders.

Delphi filed both motions with the Bankruptcy Court on Nov. 7, 2008. The DIP Accommodation Motion seeks authority to continue use of the proceeds from its DIP Credit Facility through June 30, 2009 pursuant to an accommodation agreement to be entered into between Delphi and certain lenders that constitute the majority of holders by amount of Delphi's two most senior tranches of its DIP Credit Facility (the "Required Lenders"). When filed, the agreement reflected the support of the administrative agent and the anticipated support of the Required Lenders for Delphi's transformation efforts, despite the current economic downturn and the unprecedented turmoil in the capital markets. The company made various changes to the Accommodation Agreement since the Nov. 7 filing in order to obtain support from as many DIP lenders as practicable and has received signature pages from more than the Required Lenders needed to implement the agreement.

The GM Arrangement Second Amendment Agreement Approval Motion provides the company with access to up to $600 million in additional liquidity through June, 2009 through a combination of $300 million in additional payments from GM that are subordinated to the DIP lenders and the temporary acceleration of $300 million in payments from GM during March, April and May of 2009. The company said that while the original form of Accommodation Agreement was acceptable to GM, GM has asked, and Delphi has agreed, to reconsider certain of the subsequent amendments agreed to between Delphi and the Required Lenders subsequent to the Nov. 7 filing. Delphi intends to engage in discussions with GM and certain of Delphi's DIP lenders in an attempt to identify acceptable changes to the documents presented to the Bankruptcy Court. While there can be no assurance that acceptable changes will be agreed among the parties, the company expects such discussions to be completed before the continued hearing on Dec. 1, 2008.