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Delphi Creates, Defends Intellectual Property Through Delphi Technologies, Inc.

3 May 1999

Delphi Creates, Defends Intellectual Property Through Delphi Technologies, Inc.
    TROY, Mich., April 30 -- Delphi Automotive Systems
has launched a new subsidiary, Delphi Technologies, Inc.  The
company will create, manage, protect and leverage Delphi intellectual property
(IP), including patents, trademarks, copyrights, software and trade secrets.
    Delphi Technologies, Inc. was established Jan. 1, 1999, to actively
cultivate and manage Delphi's intellectual property which includes, but is not
limited to, algorithms, mechanical design, electrical design, manufacturing
procedures and materials science.  The benefit of intellectual property is
that it more clearly establishes those products created by Delphi, and is
evidence of Delphi innovation.
    "Technology and innovation are essential to Delphi's future growth
strategy," said Dr. Andrew Brown, Jr., Delphi Technologies, Inc. president and
Delphi Automotive Systems engineering director.  "We have now expanded our
ability to create intellectual property as well as generate licensing
opportunities and revenue.  Additionally, we have the potential to actually
self-invest in Delphi Technologies, Inc. Research and Development operation,
which would create a leading-edge paradigm, the first I've seen in industry."
    Comprised of three groups -- Central Research & Development, Licensing,
and Intellectual Property -- Delphi Technologies, Inc. provides Delphi with
single-point coordination, focus and prioritization to develop high-quality
innovations and knowledge.  Delphi Central Research & Development will enhance
Delphi's ability to generate knowledge and new technologies for automotive
components and systems, working in conjunction with approximately 1,000
research and development staff located globally throughout Delphi.
    Areas of strength include:
    *  Mechatronics:  Integrated electromechanical systems including the
electric motor, power and control electronics, sensors and control algorithms.
Example:  X-By-Wire Systems, a family of braking, steering, throttle and
suspension control systems that eliminate mechanical linkages, replacing them
with electronics which improves overall vehicle system capability.
    *  Sensors:  Translate physical or chemical characteristics into an
electrical signal.  Example: yaw sensors that measure a vehicle's angular
velocity about its vertical axis to determine what systems need to respond to
regain vehicle control.  On the road today in Delphi's Traxxar(TM) system
    *  Materials:  Divided in two areas: Polymers, plastics, including
composites, elastomers and fracture mechanics.  Example: non-flammable
materials for fuel tanks; Electronic materials: Used in sensors, mechatronics
and other new devices.
    *  Advanced manufacturing processes: Simulating and optimizing metal
removal processes can reduce the substantial amount Delphi spends in this area
on raw materials and cutting tools and fluids.

    "Advanced technology and intellectual property give Delphi a competitive
edge," said Dr. Linos Jacovides, Delphi Technologies, Inc. vice president,
research & development and Delphi director of research and development.  "As a
result of the separation from General Motors, we are creating a new
organization between Delphi Technologies, Inc. and Delphi with innovation as
the linkage.  We want to be known as the premier automotive technology
research and development organization in the world."
    The value of expanded knowledge and new technologies is increased through
Delphi Technologies, Inc. licensing, which generates revenue and helps to
protect Delphi's intellectual assets.  In addition to licensing Delphi's IP
portfolio, Delphi Technologies, Inc. will ensure effective and consistent use
of patent assertion.
    "You must strongly defend your intellectual property, otherwise it doesn't
give you as much of an edge.  We now have a separate organization with staff
dedicated to protecting and defending our technology and intellectual property
from infringement," said Dr. Tony Lee, Delphi Technologies, Inc. vice
president, licensing, and Delphi director of licensing.  "The value of IP goes
beyond just our ability to provide our customers with products based on the
latest technology."
    Delphi's patent and trademark portfolios are managed by Delphi
Technologies, Inc. Intellectual Property group.  "Our principal responsibility
is the oversight of Delphi's patent and trademark portfolios.  Our trademarks
identify Delphi as the source of our products, and our patents give Delphi an
exclusive position that protects our research and development investment,"
said Charles Veenstra, Delphi Technologies, Inc. vice president, intellectual
property and Delphi assistant general counsel.
    Delphi Technologies, Inc. currently has several thousand patents in its
portfolio, and generates hundreds more each year on technologies ranging from
vehicle information systems to algorithms in air bag sensors.  "As Delphi
Technologies, Inc. grows, I expect to see a rapidly increasing patent
portfolio and a rapidly increasing recognition of and respect for Delphi's
patents and trademarks," Veenstra said.
    In addition to protecting Delphi's IP within automotive applications,
Delphi Technologies, Inc. will reach beyond its automotive customer base to
pursue non-automotive applications of technology.
    One example of a technology that could be licensed to non-automotive
customers is EmiSorb(TM), a material for suppression of electromagnetic
interference.  The same technology could be applied to computers, resulting in
increased reliability.  "Delphi is in the automotive component and systems
technology business, but we'll be looking for opportunities to maximize our
return on investment in other fields.  We're even looking at leveraging some
of our older technologies," Veenstra added.
    "We've just launched Delphi Technologies, Inc., and we're very excited
about the future it will create for Delphi.  There is considerable opportunity
for Delphi Technologies, Inc. to provide substantial revenues to be reinvested
in Delphi's future innovations and advanced technology," said Brown.
    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 196,000
employees and operates 168 wholly owned manufacturing sites, 51 customer
centers and sales offices, 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.