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Delphi Automotive to Purchase Majority Interest in Polish Parts Makers

30 June 1997

Delphi Automotive Systems Signs Agreement to Purchase Majority Interest in Polish Components Manufacturer

    KROSNO, Poland, June 30 -- Delphi Automotive Systems, a unit
of General Motors Corporation , and National Investment Fund Magna
Polonia, managed by Chase Fund Management Polska, today announced the signing
of an agreement to sell a majority interest in Fabryka Amortyzator_w S.A.
(F.A. Krosno) to Delphi.  F.A. Krosno is an automotive components
manufacturing company located in Krosno, Poland.  The business is currently
participating in the Mass Privatization Program administered by the 15
National Investment Funds.  Following the acquisition, Delphi's planned
investment will exceed 30 million US dollars.
    F.A. Krosno is the dominant supplier for dampers (shock absorbers) in
Central and Eastern Europe with a strong reputation for quality.  Current OEM
customers include Fiat, and Daewoo.  In addition the company holds a
significant position in the region's aftermarket business.
    The business will become part of Delphi Automotive's Delphi Chassis
Systems division.  According to Delphi Automotive Systems President J. T.
Battenberg III, the Krosno operation will mesh well with Delphi's existing
suspension business in North America and Western Europe.  "F.A. Krosno has an
excellent engineering organization with a highly skilled workforce," said
Battenberg.  "This acquisition positions Delphi to immediately support
developing suspension markets in Central and Eastern Europe."
    Chase Fund Management Polska represents the Magna Polonia National
Investment Fund, which is the lead shareholder in F.A. Krosno, in arranging
the transaction.  "The partnership with Delphi secures Krosno's future in an
increasingly consolidated and competitive automotive components market.  At
the same time the sale represents an outstanding realization of shareholder
value," said Witold Radwanski, Chief Executive Officer of Chase Fund
Management Polska.
    F.A. Krosno employs approximately 2,000 workers, with facilities totaling
75,000 square meters located approximately 240 Km.  South of Warsaw.  In
addition to dampers, the company also manufactures an extensive line of gas
shock absorbers and springs, ball joint and steering system components.  They
are an ISO 9001 certified supplier.
    Delphi Automotive Systems, with headquarters in Pontiac, Mich., USA, is
the world's largest and most diversified supplier of automotive components and
systems.  Delphi operates 191 manufacturing facilities, 46 ventures and 17
technical centers in 36 countries.  Regional headquarters are located in
Paris, Tokyo and Sao Paulo.  Delphi can now be found on the Internet at

SOURCE  Delphi Automotive Systems