---

Delphi Signs Memorandum of Understanding With Daewoo

19 April 1999

Delphi Signs Memorandum of Understanding With Daewoo Precision Industries

    TROY, Mich., April 19 -- Delphi Automotive Systems
today announced that they are continuing to expand their business
on a global basis by signing a Memorandum of Understanding with Daewoo
Precision Industries (DPI) to purchase 100% of DPI's Korean automotive
suspension business.  The deal could be valued at up to US$118 million.  Upon
completion, the deal would add approximately US$150 million in annual revenue
for Delphi.  The targeted completion date is during the third quarter of 1999,
subject to completion of negotiations and obtaining corporate and government
approvals.
    The proposed transaction is expected to meet Delphi's objectives for
acquisitions as it will build new customer relationships, provide growth in
annual earnings and margins, and will contribute positively to company
profitability in the first full year of consolidated operation.
    Delphi currently manufactures conventional hydraulic fixed-rate and
variable-rate suspension systems.  Its Traxxar(TM) system is an industry-
leading stability enhancement system that improves vehicle control in low
traction situations.  DPI's business is expected to grow, as their products
will complement Delphi's full line of suspension, brake and wheel
technologies.  The acquisition will also provide Korean sales, engineering and
manufacturing operations as Delphi expands its support of a growing Korean
customer base.
    DPI is a Korean-based manufacturer of automotive components and modules,
located in one of the world's major vehicle manufacturing countries.  The
suspension unit produces chassis-related products, including shock absorbers
and strut modules, for Korean vehicle manufacturers including Daewoo and
Ssangyong.  Employment totals approximately 700 people at three facilities,
located in Pusan, Inchon and Kunsan, Korea.
    Delphi Automotive Systems, with headquarters in Troy, Mich., USA, is a
world leader in automotive component and systems technology.  Delphi's three
business sectors -- Dynamics & Propulsion; Safety, Thermal & Electrical
Architecture; and Electronics & Mobile Communications -- provide comprehensive
product solutions to complex customer needs.  Delphi has more than 200,000
employees and operates 168 wholly owned manufacturing sites, 40 joint ventures
and 27 technical centers in 36 countries.  Regional headquarters are located
in Paris, Tokyo and Sao Paulo.  Delphi can be found on the Internet at
http://www.delphiauto.com.