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Newly Signed EDS and Delphi Contract Helps Position Delphi for Independent Growth

30 June 1999

Newly Signed EDS and Delphi Contract Helps Position Delphi for Independent Growth
    EDS Plays Critical Role in Support of Delphi's Seamless Transition to
                            Independent Enterprise

    TROY, Mich., June 30 -- The challenge:  to separate the
critical business and systems infrastructure functions of Delphi Automotive
Systems from General Motors to launch the 36th largest
company in the U.S., a first-ever feat on such a global scale.  The window of
opportunity to accomplish separation of the critical U.S. and Brazilian
systems: 108 days.  The result: EDS successfully completed the
majority of overall systems separation and, in the process, helped Delphi
accomplish the goal of launching an independent enterprise with virtually no
disruption to its business systems.
    Today, EDS and Delphi announced the signing of master service and U. S.
service agreements.  The five-year contracts, of which both companies agreed
not to disclose financial details for competitive reasons, call for EDS to
continue to provide a myriad of existing services.
    "As an independent company, Delphi cannot afford to miss a beat," said
Delphi Vice President and Chief Information Officer Peter Janak.  "We must be
agile, responsive and innovative, and our systems operations must enable us to
meet competitive challenges in the marketplace."
    Today's announcement provides the foundation to place Delphi among the top
three EDS clients.  The company has more than 9,000 clients globally.
    EDS will enhance a range of Delphi IT initiatives. EDS will be providing
ANX(R) (Automotive Network Exchange) support and connectivity, which enables
Delphi to work collaboratively with its suppliers, as well as OEM clients.
ANX(R) is the automotive industry Extranet designed to connect OEMs to
suppliers, and suppliers to each other.  EDS also is providing engineering and
manufacturing IT support to Delphi facilities in 36 countries.
    "Delphi is a new company and, in many ways, so is EDS.  We are pleased
that our depth of manufacturing expertise and knowledge of information
technology helped retain this important client.  Our previous relationship
helped us solidify Delphi's information infrastructure during the transition
to independence, and this new relationship -- enhanced by our E.Solutions
capabilities, will help us team with Delphi to create options for the future,"
said EDS Executive Vice President Paul Chiapparone.
    During Delphi's recent separation from GM, EDS managed a series of
projects designed to create a computing and communications infrastructure to
support Delphi's new corporate structure.
    "EDS has transformed our way of working with Delphi," added Chiapparone.
"The fact that Delphi trusted us to separate their IT systems from GM and that
we are now able to retain the business with an independent Delphi speaks to
our mutual respect and teamwork.  We are committed to providing leading-edge
technologies in conjunction with tried-and-true services to help Delphi stay
in the forefront of the Digital Economy.
    "Through our pioneering work with ANX(R) and digital supply chain
management, as well as E.Solutions innovations, EDS stands uniquely qualified
to serve as an agent of change for the new Delphi."
    Delphi Automotive Systems, with headquarters in Troy, Mich., 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 approximately
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.
    EDS, a leader in the global information technology services industry for
more than 35 years, delivers management consulting, electronic business
solutions, and systems and technology expertise to improve the performance of
more than 9,000 business and government clients in about 50 countries.  EDS
reported revenues of $16.9 billion in 1998.  The company's stock is traded on
the New York Stock Exchange and the London Stock Exchange.  Visit EDS via the
Internet at http://www.eds.com.
    For more information, contact Regina R. Strong, APR of Electronic Data
Systems, 248-265-5080, or email, regina.strong@eds.com; or Jennifer Tew of
Delphi Automotive Systems, 248-813-2527, or email,
jennifer.tew@delphiauto.com.